How to Understand the Top Post-Covid Impacts on the Real Estate Market in Sri Lanka , An informative guide!



Lankapropertyweb conducted a recent study that revealed that most countries have experienced steep reductions and prices in real estate due to the COVID-19 pandemic. However, the property prices in Sri Lanka have been remaining steady during this period. Let us look at why you must invest in real estate now and not later.

image via flickr 



Overview 


The house price index that was developed by Lankapropertyweb stated that key metrics like apartment prices, land prices and house prices have been stable between the first 2 quarters of last year, 2020. Overall prices for apartments were at their peak in early 2018 and dropped a little in 2019. There have not been significant shifts in the last few quarters. This presents a stark difference when compared to other countries like the United Kingdom, Singapore and Australia. The report provided by Nationwide, a mortgage lender, states that the United Kingdom witnessed a reduction in property prices of nearly 0.4% in June and then 1.7% in May. This has been United Kingdom ‘s biggest price fluctuation in the last 12 years, in 2009. Reports from Australia recorded prices of real estate dropping by a significant 3%. Singapore has experienced the biggest property price reductions in nearly 3 years during this period. Compared to these developed countries, prices have remained steady in Sri Lanka. If you would like to make investments in Sri Lanka, you can check out the luxury apartments in Colombo the likes offered by John Keells Properties for a good experience. 


The overall prices of real estate in the first and second quarters of 2020


The Sri Lankan house sale price was 37.42 million in the first quarter and 37.33 million in the second quarter. Apartment sale prices have been at 41.26 in the first quarter and 41.35 million in the second quarter. Residential land prices have been at 1.67 million per perch in the first quarter and 1.72 million per perch in the second quarter. Remember these are average overall prices that have been stated. The study conducted by Lankapropertyweb has shown significant interest amongst buyers which is growing. Traffic to their website has increased by 124% and then rose by a significant 228% just between the announcement of the lockdown and the month of June. In the website's 13-year history, the site had recorded the highest visit. These are all indications that Real Estate is still a major investment that you can consider profiting from. 


Land price changes


There was also a separate study conducted which compared the land prices between the first quarters of the year 2019 and 2020. It was seen that the average price for a perch of land located in the western province had a significant increase of 21%. In Columbo, however, there was a reduction of just 2%. Colombo 3, 4 and Colombo 6 also showed declines in the same period. Having said that the outer suburbs of Columbo showed a significant rise of around 25%. Outer suburbs provide affordable prices for real estate making these prospects more lucrative and attractive to the buyer. Th search records of the website also shed light on the statistics between lockdown and post lockdown. There was a rise in the number of property searches between these periods. This was prominent in regions like Dehiwela, Nugegoda, Negombo and Kandy. As repatriation of Sri Lankan nationals was taking place during this time, the demand for such properties in the suburban regions is expected to increase significantly. If you would like to try your hand at such investments, now will be the time to do so!

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