Demand Drives Sri Lanka Land Prices to New Highs. Rs8mn for 25sq metres in Some Areas

21st April 2011, www.dailynews.lk, By Indunil Hewage

The local real estate market is showing significant growth in the recent past attributable to increasing sales and customer demand for lands.

The growth is expected to continue in the years to come. The land prices are picking up considerably in the face of present outlook in the industry.

Prime Lands Chairman Premalal Brahmmanage said land prices need to be within the reach of people and should not be overpriced.

Commenting on the big land allocation for mega projects in the Colombo city limit, he said there are a few big land blocks in the Colombo city limits and allocation of these lands would not have a huge impact on prices and sale of lands used for domestic housing market activities in Colombo.

“However, when lands are allocated for commercial purposes in the city, it will have some sort of impact on land prices.

In addition, the government has taken a timely decision to regulate and streamline the selling of paddy and coconut cultivated lands for various purposes in an uncontrollable manner by giving a proper value to good lands in the respective areas,” Brahmmanage said.

Lanka Lands Operations Manager Lalith Chandana said land prices in Pasikudah, Nilaveli, Kalpitiya, Dambulla, Anuradhapura and Hambantota have seen a marked increase comparison to the last couple of years and the growth is attributable to drastic expansion in tourism and construction sectors.

According to Chandana a perch of land in Kalpitiya, Colombo 7, Kollupitiya, Gampaha, Hambantota are being sold at a price of over Rs 4.5 million, Rs 8 million, Rs 6 million, Rs 250,000 and Rs 100,000 respectively.