Real Estate – extremely high returns
It’s well known, that real estate is an 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%.
We have good news: real estate market has far surpassed any other asset class in Sri Lanka since 2014!
Properties in Sri Lanka (especially in the area of Colombo) have yielded better returns than any other investment fields according to Candor Group’s research.
Key of success is the Right place and the Right time
If you are thinking about investing in Sri Lanka – right now is the best time – this paradise destination is at the epicentre of dynamic growth.
The end of the civil war in 2009 marked a ‘renaissance’ for the island. Supported by massive rebuilding, increasing of foreign investor confidence and tourism, according to the World Bank, Sri Lanka’s growth is expected to accelerate to 5.1% by 2019. GDP per capita rose from $ 2,819 to $ 3,835 – by 36% from 2010-2016. Based on this statistics, the World Bank soon will classify Sri Lanka as an ‘upper middle-income country’ on par with Malaysia, Thailand, Maldives and Brazil.
Super infrastructure projects like: Hambantota Port, the Colombo Southport, an additional terminal at Bandaranaike International Airport are also influencing a lot on local real estate values. Thanks to these developments, passenger capacity is predicted to expand from 6 million to 15, which is 150%. In terms of nationwide transport connections, it’s also opening a lot of opportunities thanks to $ 3 billion Northern Expressway and other road projects.
Investment opportunities abound in 20-30 year growth market
One more indication of the very fast growth of the market is rising of property prices in last years. According to LankaPropertyWeb.com, which is the leading property website, Price Index for houses shows that average 3-bedroom apartment’s values in Colombo have increased on 6.2% in 2017 and land prices even more. An apartment will see rental yields of 6-8% typically.
Insight to start investing successfully
Our recommendation is rather than go it alone, get the best of local knowledge and insight to reap profitable rew