Real estate thriving in Sri Lanka,but it’s also a dangerous business, says expert
While experts say that the future holds good for the real estate market in Sri Lanka, others disagree noting that legislation governing the acquisition of property by foreigners and the diaspora is not encouraging for investments in the country.
Various topics regarding real estate in Sri Lanka were discussed by a panel of experts at a recent workshop in Colombo which drew divergent views. It was organised by Lamudi, a global property company launched in 2013 that keeps a tab on emerging markets.Wilhelm Hammes of Lamudi Lanka (Pvt) Ltd, the local subsidiary of the global organisation, said around 70.000 persons every month search for property in Sri Lanka through their web site. The property market in Sri Lanka is booming and buyers from Europe and South Asia are making online inquiries regarding real estate in the country. Even buyers from Australia, Canada, Italy and UK have shown their willingness to invest in real property in eco- friendly areas such as Kaduwela, Maharagama and Dehiwela.
Real estate consultant Roshan Madawela said Sri Lanka has been a top performer in the construction sector since 2009. It has grown to double digit figures and this was an indication how the property market has fared in the country. Sri Lankan expatriates have pushed up the real estate prices in the country. “There is a massive demand for commercial space in Colombo as more international companies are on the lookout for such space.” There is also a demand by expatriates for space in Rajagiriya to build luxury apartments while the World Bank is funding a project to ease traffic congestion in the area. Lecturer Pratap Kaluthanthri of Sri Jayawardenapura University said the price of properties assessed by a state institution is not the actual price that reflects in the prevailing market. However the problem confronting real estate business is the non availability of a data base on land development unlike in developed countries, resulting in the public and the valuers not having proper information regarding property and land matters. Even those who are engaged in valuation businesses do not share information with their rivals, he said. People shun away from disclosing information regarding property to avoid income tax and a host of other issues. “Even underworld gangs may come after you if you disclose the amount from a sale of land,” he said. The problem that affects real estate is the number of laws governing the land such as Thesavalami in Jaffna and the Roman Dutch law and other laws passed in 1950 and in 2009.
Lamudi is present in 28 countries in Asia, the Middle East, Africa and Latin America with more than 700,000 real estate listings across its global network. Its local subsidiary established in May 2014, today has exceeded 13,000 listings with 200 clients. Lamudi.lk helps people in the property market to find their ideal home, land or commercial property.