Land prices likely to reduce drastically: Bandula

Wednesday, 14 February 2024 00:26 - - {{hitsCtrl.values.hits}}

Cabinet Co-Spokesman and Minister Bandula Gunawardena yesterday said the land prices are poised for a substantial decline amidst Government initiatives such as land gifting and long-term leasing to investors.

His remarks come following the Cabinet approval of several land-related proposals put forward by respective Ministries.

Building on the success of the ‘Urumaya’ program, which grants freehold ownership of Government lands to settlers, the Cabinet of Ministers approved a proposal to extend the program to lands under the Sri Lanka Mahaweli Authority.

The ‘Urumaya’ program will see 10,000 freehold provisions of real estate and farm land rights to two million families who did not own even an inch of their own land.

Additionally, the Cabinet approved a proposal to exempt a designated land area from conservation by the Wildlife Conservation Department. The move will release 56.8 hectares of the Madhu Road Sanctuary, comprising paddy lands and settlements from the conservation reserve.

Speaking at the post-Cabinet meeting media briefing yesterday, he outlined the positive impact of gifting deeds and leasing underutilised State-owned lands to investors on the future real estate market.

“These measures would result in a decrease in artificially inflated land prices, paving the way for more competitive pricing countrywide,” he added.

Gunawardena also claimed that the country’s real estate market has long suffered from inflated prices, particularly in urban areas like Colombo, surpassing rates observed in developed countries.

He attributed this phenomenon to the closed nature of the market.

“Previously, many people lacked ownership of land, which restricted their ability to transfer ownership or utilise land as collateral for loans. With the introduction of land gifting and long-term leasing programs, individuals now have the opportunity to sell their land, thereby injecting more land into the market and diminishing the artificially created prices,” he explained.

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