Real estate market update: Nawala on good footing

By the Research Intelligence Unit (RIU)

With the real estate market in Colombo posting sustained positive growth, Nawala has been enjoying the benefits of being located within close proximity to the city whilst maintaining a green and leafy environment. With pipelined infrastructure also set to benefit the area, RIU has taken a fresh look at the real estate market in Nawala.

Nawala is located within the city of Sri Jayawardenenapura Kotte, the administrative capital of Sri Lanka and is predominantly a residential area. The Nawala area borders the towns of Rajagiriya, Ethul Kotte, Pitakotte, Nugegoda North, Pagoda and Battaramulla regions.

Under the Megapolis transport plan of the Western Megapolis Ministry the Government will focus on providing a solution to growing congestion with improved and modernised railways along with Rapid Transit Systems (RTS) such as Light Rapid Transit (LRT)and Monorail systems which will help to develop the infrastructure in the Kotte region which would have positive spillover effects in the region.

According to the latest proposal made by the Government, there are plans to build an elevated RTS from Colombo 4 up to Dematagoda (along Baseline Road) providing the main route as it passes close to the Asiri Surgical Hospital which is located at Kirimandala Mawatha.

Real Estate in and around Nawala area

According to the field research carried out by RIU in 2017 on Nawala, information regarding residential properties indicate a gain of an estimated 5-10% per annum in value whilst commercial office space rental growth has been between 7.5-10% per annum. The Nawala region specifically the Kirimandala road has many government offices and private hospitals which attract a large number of people into the area.

Growth in non-residential real-estate

There has been an increase in the commercial real estate segment, especially in Nawala due to a lot of business people and entrepreneurs who are engaged in commercial activities within the region. There are also a few prominent schools in the region which attract a large crowd of young people to the region and the hospitals attract a large amount of middle aged to old age people. Nawala area is very famous for granite and ceramic shops which are very useful for the construction of housing in Sri Lanka. Today, Nawala is a cosmopolitan town which is fully equipped with many facilities including convenience stores, retail outlets, banks/ATM facilities, fuel and gas stations, stationery shops, grocery shops, medical centres, hardware shops and many retailers of upmarket brands which have made Nawala a landmark town.

Increased demand for high-end residential apartments

There has also being an increase in the development of apartments in the region. Many new real estate developers have realised the potential of the area. There has been an increase in the demand for professionals to look for housing and real estate since an important factor to note is that Nawala is in close proximity to the Central Business District (CBD) of the commercial Capital of Sri Lanka. The distance and time saved on the road will have a positive impact on the lives of the professionals instead of travelling from other suburbs of Colombo.

Major high end residential apartments are namely:

77 on forth (JAT Holdings)

Lake Front (Blue Mountain)

Prime Aqua (Prime land)

Skyline Kotte (Dwellco Ltd)

Signature Twelve (Zam lank Developers)

Nawala Residencies (Prime land)

Royal Park Condominium (Keangnam)

The Tranquility (Ce-ko Developments Ltd)

Heights (Millenium housing developments)

According to the research report produced by RIU, the real estate market in Nawala is set to enjoy sound growth over the next decade as new infrastructure in and around the area will address issues related to traffic congestion. Given Nawala’s proximity to Colombo CBD, more and more retail and commercial development will enter the area while the green and residential environment, will ensure continued popularity among the upper-mid and upper end of the socio-economic groups.

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