Millennium Housing Developers PLC eyes luxury housing
Millennium Housing Developers PLC (MHDP) has plans to build luxury beach villas, holiday homes in the hill country and luxury living spaces in strategic locations in the island.
Officials told the Business Times that MHDP sees tremendous potential in this sector and has a plan to expand its revenue streams beyond developing neighbourhoods.
“Now many people are looking at holiday destinations, but many aren’t able to maintain say beach houses for an example. So we’re trying to get into this sector,” an official told the Business Times. The company has inspected certain potential locations in Negombo, the East, the South, Kandy, Diyatalawa, etc but nothing has been finalised, he added.
In addition to plans to develop 88 apartments at Rajagiriya, 50 apartments in Nawala and 150 apartments in the administrative capital near the Water’s Edge for which the scenic properties have already been acquired, MHDP aims to build more townships, according to the official.
“While we will be building high rises MHDP will be considering more detached housing units and gated compounds,” he added.
The company’s annual performance saw a profit of Rs. 146 million with an EPS of 1.09 for the year 2016/17.
Analysts say that MHDP has potential in this sector with the high-end of the condominium market, as demand is led by Sri Lankan expatriates and returnees, who have been snapping up the majority of apartments in high-rise projects, often even before they are built. Most are bought for investment purposes like renting, not to actually live in them.
Analysts also say that there is growing demand for luxury homes even as wages in Sri Lanka remain stagnant, obviously eliminating the housing affordability of an average Sri Lankan. Numerous construction companies confirm that the majority of their buyers consist of Sri Lankans living abroad, foreign buyers and locally-based high net worth individuals.