Colombo Property Market Monitor 1Q21
The quarterly real estate report of Colombo city
The Sri Lankan economy rebounds towards a pre-pandemic normalcy in 1Q21, as the country’s economic activity strengthens, and vaccination programs gather momentum domestically. Tourists trickled in with relaxed travel restrictions and the GoSL expected a brisk in the overall economy.
In the real estate sector, demand for Grade B office strengthened, while Grade A office space demand remained slow with stagnated rents. Residential sales noticed a significant growth with a growing interest for holiday homes/ secondary homes among local buyers. Prevailing low mortgage rates, continued to boost demand in the residential market. Following a significant recovery in retail sales, leasing activity picked up in the organized retail segment. Hotels in Colombo continued to struggle whilst the resort regions outside Colombo benefits from travel bio-bubble arrangements.
- Leasing demand for office spaces picked up slowly, however Grade A rents remain stagnated
- Increased demand for residential apartments outside of Colombo
- Noticeable growth in the high street buildings as retail sales rebounds
- Resorts outside the Colombo benefited from travel bubble arrangements while south west coast survived from domestic leisure demand