Colombo condos selling at cost due to uncertainty

the condominium market in Sri Lanka is facing a major crisis with investors selling their properties at cost due to the uncertain economic climate.

By Fazl-ur Rahman

Colombo may have condominiums which are even costlier than those in Dubai but many are selling their properties at cost due to rising interest rates as well as uncertain economic and political developments in the country.

According to Mangala Perera, Director of the newly formed Aranya Investments (Pvt) Ltd, the condominium market in Sri Lanka is facing a major crisis with investors selling their properties at cost due to the uncertain economic climate. “The price of an apartment in Colombo (during the good times) is actually higher than what you can get in Dubai, making condominiums in Colombo some of the most expensive in the world thus discouraging their sales” he said.

Perera, who in a press release detailed his company’s work since its launch a year ago, said that although the property market is depressed now, it will improve, and when it does, the market will sky-rocket as was the case in the past.

His view is echoed by many developers who believe the real estate market will regain its lost glory once the situation improves in the country.

Aranya Investments is a fledgling property development company which aims to add value to the lands they sell by placing them in locations of pristine natural beauty.

According to Perera, ‘Aranya’ means a place for the ordinary citizen; a place which gives peace of mind and serenity. As such, the company plans to make their properties more affordable, thus allowing for a larger customer base.