PROPERTY DEMAND: GALLE VS. COLOMBO
There is little argument that both Colombo and the city of Galle are two of the most developed urban regions in Sri Lanka. What’s significantly common about these two regions is that they are not just economically developed, but they are also highly celebrated travel destinations that offers so much for locals as well as international travellers. As such, these regions attract a large number of property hunters, who seek high-end residential or commercial properties in or near these two cities.
The real estate market in Colombo
Being Sri Lanka’s most developed city, Colombo is home to the widest variety of properties spanning from luxury and mid-range apartments, studio apartments, Luxury and mid-range houses, high end and affordable commercial spaces, found anywhere in Sri Lanka. Its growth in infrastructure, technology and economy has resulted in many investment projects which includes, The Colombo port city, which draws its first investment of USD 1 billion in mid-2018.
As a result of the above, when compared to other regions of the country like Galle, Colombo indicates the highest demand for properties that correlates with its increasing prices. Hence the residential properties that you see in Colombo are constructed to offer you the most comfortable life within the city.
Vertical living which was introduced to Sri Lanka not so long ago, is gaining the highest popularitywithin the commercial capital in comparison to cities like Galle. Thus, at present, a property hunter is given a plethora of options such as Altair, Iconic Galaxy, Capitol Twin Peaks and many more to choose from, which aligns with their requirements.
Colombo shows the highest price levels in comparison to other cities, especially for luxury apartments and modern houses. Additionally, an increase in land prices was also observed in the city of Colombo over the recent past. Currently, average luxury apartment sale prices range between LKR 60 – LKR 100 million. Luxury houses with a minimum of 2 bedrooms indicate an average sale price of LKR 10 – LKR 50 million. The rental prices for commercial spaces in Colombo indicate an average price between LKR 50 – LKR 100 thousand per month. However, price levels for such properties vary according to consumer requirements, facilities offered, locations and the area of the space.
However, the future of Colombo’s real estate market will largely depend on the expected infrastructure developments, which would come due to the proposed Western Region Megapolis Planning Project (WRMPP).
The real estate market in Galle
According to Lamudi’s in-house Real Estate Market Report of Sri Lanka for 2017, the city of Galle has been recognised as one of the fastest emerging metropolitan regions in the country for luxury properties. Real estate agents in the region have indicated that the demand for such properties seems to be growing at a stable rate for the past few years. Thanks to its strategic positioning, Galle is currently attracting many foreign investors looking to leverage the Galle Marina and experts believe that many job opportunities can be created through Luxury yacht building and marina development. One of the main factors that contributes to the growing real estate industry within the city is its inexplicable value in tourism. Thanks to developments like Weligama Bay Marriott Resort & Spa, Fairway Galle, Amary Galle, Galle Beach Hotel, and infrastructural developments like the Galle Port, the city now offers a myriad variety of property including many short-term rental options.
In comparison to Colombo, property prices are low in Galle. Yet price levels have been increasing since the end of the 30 year civil conflict. Currently, luxury apartments for sale starts at 30 million. While long term rental prices for luxury villas range from 50 -100 thousand per month, monthly rental prices for Luxury houses may range from 10 – 50 thousand depending on the facilities included.
Nevertheless, the future of Galle seems to be a greener one. Due to its regional economic growth credits to the tourism industry, Galle may become the location of high-end properties with developments such as Fairway Galle focusing on a more sustainable future.