The overall land price values have increased by 74% from 2018 to 2021 This was revealed by the annual Land Price Index released by LankaPropertyWeb, Sri Lanka’s number one real estate platform, in the Western Province (except Colombo Municipality area).
The company also revealed that, on an annual basis, the increase in average land prices between 2018 and 2021 was 15% (Annual Effective Rate).
As a result, if an investor were to invest in property and hold it for 4 to 5 years, his initial investment would multiply largely over time
Between the first quarters of 2019 to 2021, fixed deposit rates have reduced from 11.41% to 6.29%. While the land price acceleration in the Western Province slowed down from 22% in 2019 to 18.56% in 2021.
During the last 4 years, a growing demand for land in the suburbs was also witnessed with price increases being reported from Kolonnawa, Hanwella, Peliyagoda and Welampitiya in the Colombo district.
Cities such as Kelaniya, Dompe and Kadawatha in the Gampaha district showed price increases as well, providing further evidence to the changing patterns of Sri Lankan property buyers.
Among these cities, however, what topped the list in fluctuation during the 4 years was Ingiriya in the Kalutara district.
The land prices in the city had experienced a 246% increase from 2018 to 2021. This is an annual average increase of 51% with a 109% increase between 2020 to 2021.
The record of Ingiriya was followed by Angoda (195%) that ranked 2nd and Kolonnawa (183%), which had the 3rd highest land price fluctuations from 2018 to 2021.
The data further revealed that on an annual average basis the increase in land prices in the former between 2020 to 2021 was 69% while the latter was at 4%.