COLOMBO’S PROPERTY MARKET
Sri Lanka’s capital city, Colombo, has seen a dramatic increase in activity and development following the ending of the thirty year civil war in 2009. Much of the development has been credited to the real estate sector, which has experienced significant growth in the past five years.
Increasingly prohibitive land prices and limited availability in Colombo have given rise to a boom in the development of condominiums. Coupled with the convenience a fast paced lifestyle demands, the urban dweller of today has embraced the trend in vertical living. The premium and mid range segments of the condominium market have shown an average capital growth of 12% year on year. At an average of 7%-8%, Colombo also enjoys some of the highest residential rental yields in the region.
As infrastructure continues to advance in the form of highways and large-scale projects like the Colombo Port City, Colombo as a destination is set to draw further investment appeal. A further two million Sri Lankan expatriates reside overseas, of whom, it is estimated that 15% to 20% have the capacity to invest in premium real estate and are likely to do so as the city transforms into one of the gateway cities in the South Asian region.
At present, 90% of property purchases are equity funded. As the economy stabilises, allowing for lower and more stable interest rates, the emergent mortgage market will play a significant role in growing the demand for real estate in the future.
WHY 447 LUNA TOWER IS A COMPELLING INVESTMENT OPTION
447 Luna Tower occupies a central location on Union Place, in a neighbourhood that offers any and all conveniences from designer shops and upscale restaurants to supermarkets, banks, hospitals and more.
The apartments are priced in Sri Lankan rupees (LKR), while a majority of the other noteworthy residential developments in central Colombo are priced in US dollars (USD). Investors will benefit from the greater capital appreciation of fixed LKR pricing as the US dollar appreciates and the cost of competing developments increase in LKR terms.
447 Luna Tower has been strategically positioned in the upper mid-range segment – with 70% of the inventory priced below Rs. 56 Million, which places it within reach of a wide market segment. At a lower price point than the premium segment, this development caters to a gap in the market which is undersupplied.
The 202 elegantly styled apartments are complete with premium finishes: Burma teak flooring, German kitchens, Marazzi bathroom tiles complete with Hansgrohe and Duravit fittings, double-glazed windows, and more. The finishes surpass a number of the premium developments and offer superior value in comparison.
The condominium will also feature impressive facilities which include a rooftop infinity pool and a clubhouse on the same level (level 45); a landscaped garden with a walking path, a kids’ pool and a fully equipped fitness centre on the podium level (level 7) .
Upon completion, 447 Luna Tower will offer the optimal combination of luxury and convenience to both homeowners and tenants.