Friday Nov 22, 2024
Friday Nov 22, 2024
Friday, 22 November 2024 04:14 - - {{hitsCtrl.values.hits}}
The Research Intelligence Unit (RIUNIT), yesterday revealed remarkable growth in apartment prices in Colombo and its suburbs, underscoring their resilience and attractiveness as income-yielding assets.
According to the latest data, the year-on-year change in average apartment prices across all tiers in Colombo City stands at 15.66%, with a year-to-date fluctuation of 11.91% (in USD terms).
These figures emphasise the consistent appreciation of real estate in the city, even amid fluctuating economic conditions.
The most striking growth was observed in Tier 3 apartments, particularly in the Colombo 13 area, where the average price per square foot surged from $ 71 to $ 112 between October 2023 and October 2024. This represents a staggering 58% year-on-year increase. Tier 1 apartments in Colombo 3 recorded the lowest year-on-year growth at 3%, reflecting a more stable but still positive trend.
Despite a dip in Colombo land prices in early 2023, apartment values demonstrated resilience, steadily climbing throughout the year. This underscores its role as a viable investment alternative, offering both appreciation and rental income potential. Encouragingly, land prices in Colombo have also rebounded since late 2023, aligning with broader recovery trends in the real estate market.
The suburban market also displayed notable growth trends, with Ethul Kotte leading the way for Tier 2 apartments, recording a 29% year-on-year increase. This growth is attributed to its strategic location, improved connectivity, and rising demand among middle-income families seeking housing options outside the city centre. In the Tier 3 segment, Ratmalana emerged as the strongest performer, highlighting the rising appeal of affordable housing options in suburban areas that are well-connected to the city.
This growth trajectory reflects shifting investor sentiment as global and local buyers recognise Colombo’s real estate market for its medium- to long-term gains. The continuous rise in apartment prices not only highlights strong demand but also demonstrates confidence in Colombo as a thriving hub for residential and investment opportunities. Both the investors and homeowners are likely to see Colombo apartments as a cornerstone of portfolio diversification, combining stable yields and potential capital gains.
RIUNIT CEO Roshan Madawala said: “Whilst monitoring real estate market movement is not an exact science, we at RIUNIT make maximum effort to triangulate our market intelligence from multiple sources. In this regard, we provide timely and critically important information to our clients.”
In early 2024, RIUNIT marked its 21st anniversary, celebrating over two decades of excellence in market research and consultancy. The company also announced its continued expansion across Asia and beyond, solidifying its position as a leading market research firm with deep expertise in real estate.
