Despite volatility in demand and over supply of land in certain areas of Colombo, prices for neither commercial nor residential property have got adjusted down, a recent report by myeaglefunds of NDB Aviva Wealth Management has stated. According to a Market update and Fund Review by the firm, though sales have reduced in certain areas of Colombo, no correction has been witnessed in the prices.
“The oversupplied locations remain stagnant and are expected to remain so for the next six months. In the residential space, relatively high sales volumes have led to a sharp increase in prices and rental cost of apartments in the heart of Colombo,” the report further noted.
It noted that entry points for high end luxury apartments in Colombo 3 and 4 are in the range of Rs. 36 million – Rs. 60 million for 2-3 room and 1,500 sq ft – 2,700 sq ft respectively.
“Retail buyers appear to be postponing their decisions due to expectations of a price correction and lower interest rates. The demand for bare land in residential areas of Colombo and the immediate suburbs have increased rather steeply. High demand for commercial property segment is evident as companies are looking at long term holding of real estate office space,” this report on real estate further identified.