Our view on Sri Lanka’s property market
There’s a neat, optimistic narrative to be told around Sri Lanka’s property market.
The ending of the war in 2009 revived both local confidence and international interest; an increasingly affluent middle class is now driving demand; a burgeoning tourist industry has hiked the market for holiday accommodation; recent elections have shown the country on a steady democratic path.
Anecdotally, too, it’s easy to tell a positive story. Current land prices will almost universally compare incredibly well with those remembered from five years ago. Romantic references to Colombo skylines also talk happily of a ‘remarkable transformation’ in one of the now top global cities for international investment.
There aren’t yet the figures to back up that outlook with any statistical certainty.
That doesn’t mean the optimism’s misplaced but is a reminder of the relatively young, dynamic market we’re in and the need for some caution that goes with it.
At the root of it, we think that broad-brush trends shouldn’t be enough on their own to convince of the rights or wrongs of spending money here.
Those are undeniably positive but Sri Lanka is a wonderfully diverse island with a great number of – often quite esoteric – sub-markets. Really understanding subtleties of those is the route to finding fantastic, suitable opportunities. It’s in that regard that we look to work for and alongside our clients and partners.