Changing landscape in Sri Lanka’s real estate sector

KPMG in Sri Lanka together with the Research Intelligence Unit recently released the first issue of Real Estate Market Brief, a publication geared towards those interested in the developments and opportunities present in the Real Estate Sector of Sri Lanka.

Commenting on the release, Partner and Head of Advisory for KPMG in Sri Lanka Reyaz Mihular said that the marked growth in the real estate sector, especially since 2009, has led to high price levels and demand for real estate assets such as bare lands, residential housing, commercial premises and condominium style apartments.

He also mentioned that the Market Brief shows how developments in this sector were further fuelled by the increasing interest of foreign investors in the acquisition and development of prime blocks of commercial properties within the country along with the renewed opportunities offered through developments in the leisure sector and the general increase in household investor confidence.

He added that the research presented in the publication indicated that these developments have led to increased activity in the construction, housing, property sales and apartment markets which in turn would positively impact both individuals and institutions engaged in this sector.

KPMG in Sri Lanka’s Principal for Real Estate Advisory services Shiluka Goonewardene, commenting on the market brief, said that while the property market was comparatively one of the most mature markets in the country the dearth of information available in this field (especially with regards to property prices, transactions, trends and performance of the sector as well as its various sub sectors) was one of the key shortcomings or challenges that the market faced.

He added that the Real Estate Market Brief produced together with market intelligence firm Research Intelligence Unit attempted to bridge this shortfall and provide stakeholders in this sector with information that would be useful to them.

Research Intelligence Unit Chief Executive Officer Roshan Madawela added that they had been conducting market surveillance in the real estate sector over the past five years and a notable increase had been observed since 2009. He noted that despite various challenges that exist, this latest report was based on many sources of primary and secondary data.

Roshan added that RIU was pleased to collaborate with KPMG in Sri Lanka on the initiative and hoped to continue to produce quarterly updates to keep interested parties informed of sector developments.

The full report can be accessed from KPMG Sri Lanka’s web site www.kpmg.com/lk.