The Research Intelligence Unit (RIUNIT) has reported that Sri Lanka’s land prices have remained relatively flat, marking the current period as the least dynamic in its 21-year tracking history.
Following the economic crisis, the anticipated rebound in land prices has been slower than initially projected, according to the specialized research firm focusing on the Sri Lankan real estate market.
In Colombo city, average land prices denominated in LKR saw a slight uptick from Rs. 14.024 million per perch in November to Rs. 14.038 million per perch in December. Similarly, when measured in USD terms, prices increased from $42,725 per perch in November to $42,965 per perch in December.
RIUNIT’s monthly real estate market surveillance update highlighted Colombo 05 as experiencing the highest growth rate of average land price per perch within the Colombo city land market, with nearly a 3% year-on-year increase from December 2022 to December 2023.
Despite the positive incline in the land market, the rate of increase is currently sluggish. The report noted that even during the civil conflict before 2009, higher growth rates were observed. However, RIUNIT anticipates a potential market pickup toward the latter part of 2024.
Established in 2003, RIUNIT was the first agency to collect land price data in Sri Lanka and other Asian countries. Their market data and intelligence have played a crucial role in RIUNIT’s Real Estate Research Division, facilitating the development of over 70% of Colombo’s large residential, commercial, retail, and mixed-use developments by both local and foreign developers and investors.