Thursday, 24 August 2017

Sri Lanka – Asia’s Next Property Hotspot?

With land and house prices seeing unprecedented appreciation in 2017 alone, Sri Lanka has emerged as Asia’s new destination for attractive real estate returns with its prime beachfront land, seaside condos, high-end luxury serviced apartments and more.

From Holiday Destination to Property Hotspot Location

Given the uncertainty of Brexit and other global developments coupled with a slowdown in traditional property markets i.e. Malaysia, Singapore and China, the Indian Ocean island paradise of Sri Lanka has become the new “sexy” destination for property investors. Over the years, Sri Lanka has established a track record for handsome returns and high rental yields while providing investors the best of price, location and property choices.



Real Estate – Really Good Returns
Real estate has proven over time to be a sound asset class for capital preservation and wealth creation. Its tangible, physical nature gives investors a solid assurance over paper assets while rental allow for passive income. Financing can be secured to facilitate ownership. Land can be developed while refurbishments to completed homes will yield better capital returns ranging 20%-200%.
In Sri Lanka, real estate has far outperformed any other asset class since 2014. .


Source: Candor Group
According to research by Candor Group, properties in Sri Lanka, (specifically in the Colombo city area) have yielded better returns than any other investment class.










Right Place, Right Time – At the Epicentre of Dynamic Growth

The end of the civil war in 2009 marked a “renaissance” for the island. Supported by massive rebuilding, surging tourism and increased foreign investor confidence, according to the World Bank, Sri Lanka’s growth is set to accelerate to 5.1% by 2019. GDP per capita rose from US$2,819 to US$3,835 – by 36% from 2010-2016. Based on this trend, the World Bank could soon classify Sri Lanka as an “upper middle-income country” on par with Malaysia, Thailand, Maldives and Brazil.

Mega infrastructure projects are also having a multiplier effect on local real estate values. These include the Hambantota Port, the Colombo Southport construction as well as works for an additional terminal at Bandaranaike International Airport. The latter will see passenger capacity expand 150% to 15 million from its current six million.
The US$3 billion Northern Expressway and other road projects will open up new opportunities while enhancing connectivity and accessibility nationwide.

Source: Colombo Port City

 ‘Investment Opportunities Abound In 20-30 Year Growth Market”

An indication of the sterling growth is evident in the rise of property values in recent years. Leading property website LankaPropertyWeb.com’s House Price Index shows that average apartment prices in Colombo (for a 3-bed) have appreciated 6.2% in 2017 and land prices even higher based on asking price values. An apartment will see rental yields of 6-8% typically.
In comparison to real estate, other investment options have been slow or unexciting.  

Leverage on Local Knowledge & Insight to Start Investing Successfully

Rather than go it alone, get the best of local knowledge and insight to reap profitable rewards from Sri Lanka’s property boom (and other investment options) at the ‘Investor Forum Sri Lanka’ on 30th August held at Kingsbury Hotel.

Listen to Candor’s Ravi Abeysuriya, JLL’s Sunil Subramanian and Liang Thow Ming, CSMO of CHEC Port City and other experts share on the best investment options available at the moment. Organised by LankaPropertyWeb.com and RB Realtors & Consultants. For more information, please visit www.LankaPropertyWeb.com/events.

Tuesday, 22 August 2017

Is Nugegoda the Ideal Suburbia?

Does good transport links, good schools, abundance of shopping, restaurants and recreational activities make Nugegoda the ideal suburbia?


Introduction and History
Nugegoda has become almost a synonym with the urbanization that is sweeping Sri Lanka amidst the recent real estate boom. The town which amounted to a very small town in the recent past, has grown tenfold in the last few years to become an area that hosts prime real estate.
Known as Dimbulgas Handiya in the past, the name “Nugegoda” is assumed to come from the term “Nugen Egoda”. It was known to be largely a very flat landscape with marshlands. Today, Nugegoda is a bustling urban center with a large basis of affluent middle-class residents and a high influx of people on a daily basis.
The High-level road which connects the Sabaragamuwa and surrounding areas has played a key role in Nugegoda becoming an urban center of the Western province. As a gateway to Colombo, Nugegoda attracts a large number of visitors, both as travelers that are passing through as well as those intending to access the many amenities the urban center has to offer.
Nugegoda is also famous for its iconic Bo tree after which the Bo gaha junction has been named.

Population in Nugegoda
The population around Nugegoda region is approximately 36,326 according to the figures in 2012 when Nugegoda, Pagoda and Gangodawila is calculated together.
This figure is bound to have grown in the last 5 years and the current figure must be viewed in comparison with numbers from 2017 listing the approximate figures of Colombo (648,034), Mount Lavinia (219,827), Pita Kotte (118,179) and Maharagama (66,576).

House Prices
Despite crime rates increasing, the real estate property market for housing and land properties in A house for sale in Nugegoda averages around 45.5M for a 4-bedroom house and the average price for a 3-bedroom house is set at 26 Million, which is a 19.6% decrease from last year.
Nugegoda are growing at an exponential rate. Regardless of high crime rates, people still view this region as a viable and a valuable addition to their families. The price of an average 4 bed house has gone up 21%.
Land for sale in Nugegoda is also on high demand, rising up to 2.5 million per perch which is a 13.6% increase. This is indicative of the direction in which land for sale in Nugegoda is heading, supplemented by many new apartments and luxury living complexes being built in the region. Nugegoda is currently a popular choice for property searching with it being the 3rdmost searched location for rentals and 7th for sales.
According to the recent survey conducted by LankaPropertyWeb.com, when deciding a place to stay people made their choices based on the neighborhood and distance to work. Nugegoda is a location and a setting where both these factors are fulfilled thus making it an ideal region to establish residency.

Schools and Institutions
Nugegoda houses some of the top tier schools in the country, both in terms of National and
International Schools. It has also become a hub for students, particularly due to the large number of private tuition classes that operate around the Nugegoda area.
The likes of Lyceum International, St. Johns College, Anula College, Samudradevi Balika Vidyalaya, Sujatha Vidyalaya lay claim to the schools and Sakya and Rotary plays a large role as institutions. Nugegoda has a perfect mixture of national and international schools giving parents the perfect set of options to choose from.
Nugegoda is also close to University of Sri Jayawardenapura and the Open University of Sri Lanka, providing a higher education outlet as well.


Amenities and Shopping
It also houses some of the island’s premier fashion and clothing ranges which gains millions of people especially in the seasonal times. Nolimit, Glitz, Manjari, Kelly Felder, Cool Planet, House of Gifts are amidst large collection of stores dedicated to apparel and fashion.
The Nugegoda supermarket also houses a large collection of vendors and the town is equipped with many Keells and FoodCity outlets, providing easy and quick access to shopping needs.

Restaurants
A very significant number of fine dining restaurants are based in the region as well as fast food ventures such as McDonalds, KFC, Burger King, Steam Boat, Jade, Fab, Green Cabin with more being added in the future.







Recreation
The recent addition of a wetland park (previously known as the Weli park) has proven to be an
attractive recreation option for the community.









Healthcare and Hospital

In terms of the healthcare of the region, there are many diverse yet quality options. The presence of a number of private healthcare providers such Ceymed & Winlanka and the proximity of Sri Jayawardenapura Hospital and the Kalubowila hospital, makes Nugegoda one of the few places in Sri Lanka with access to high quality health care 24x7.



Distance and Transport
Nugegoda is only about 9.5 Kilometers away from reaching the heart of Colombo. By bus, this
distance can be covered in about 45 minutes and if by car in about 30 minutes.
Although the traffic can cause delays it is still a very short drive thus enabling in most times, a quick access to the Colombo region.






Why Nugegoda is still a better Option?
With prices going up, any property that you choose to invest your money in will increase in massively value in the coming years. Therefore, despite the crime rates rising, Nugegoda is still a very attractive proposition just on a monetary note.

The resident community around Nugegoda is also rapidly on the change. This is due to more and more young professionals moving in which is undoubtedly transforming the community. The surrounding parks and leisure options provide ample room for relaxation. Furthermore, Nugegoda as a transportation hub provides access to a quick getaway to any corner of Sri Lanka. 

Tuesday, 24 January 2017

Access Engineering invests Rs.2.295 bn in Harbour Village

Access Engineering has invested Rs.2.295 bn in Hotel 10 (Private) Limited, a joint venture between Mustafa’s, China Harbour Engineering Company (Lanka) Limited and Access Engineering toset up a mixed development project
The development will take place on a five acre land situated at No.250,Srimath Ramanathan Mawatha, Colombo 15.This land which overlooks the Colombo Port, is located 2 km from the City Centre and the Port CityDevelopment.
(Source: Daily News)

Tuesday, 17 January 2017

Foreign investors for over USD300,000 to get resident visas in Sri Lanka

 Sri Lanka’s Finance Minister said that foreigners who make a minimum investment of 300,000 US dollars will see a range of benefits including the granting of two to five-year resident visa permits.
New regulations would be introduced to increase the concessions and facilities granted to Foreign Direct Investment, Ravi Karunanayake, Finance Minister said, according to the media reports.
(Source LBO)

Monday, 16 January 2017

All systems go for Krrish square project construction

The US$ 650 million-Krrish square project construction is now underway following the final payment (about Rs. 690 million or US$5.3 million) plus fines for the delayed payments being made, top officials of the Board of Investment (BOI) and Urban Development Authority (UDA) confirmed to Business Times (BT).
Krrish Transworks Colombo (Pvt) Ltd, local company of the Krrish Group signed a supplementary agreement with the BOI on November 29, 2016 to complete the project in 48 months, BOI chairman Upul Jayasuriya said on Wednesday in an interview with the BT.
(Source: Sunday Times)

Tuesday, 15 November 2016

Sri Lanka to charge 10-pct capital gains tax on property: Budget 2017

Sri Lanka will charge a 10 percent capital gains tax on immovable property, Finance Minister Ravi Karunanayake said, in a budget for 2017.

Details were unavailable, but earlier reports suggested that property bought and sold before the expiry of 10 years would be subjected to the tax.

More>>

(Source: Economy Next)

Lanka withdraws ban on foreigners buying property

Sri Lanka has announced it would lift a ban on foreigners owning property as the cash-strapped country sought to attract foreign capital to rebuild its war-ravaged economy.
Finance Minister Ravi Karunanayake on Thursday told parliament of the potential to attract much-needed foreign investment in the construction sector, which is experiencing a boom following the end of the island’s ethnic war in 2009.


“To further incentivise such investment, we will remove freehold right restrictions from the ground floor,” the minister said, referring to a 2014 ban on foreigners purchasing real estate.


More>>

(Source: Gulf Times)