Real estate market is booming: survey

At least seven-in-10 respondents to a countrywide poll conducted for leading business magazine LMD by research firm Kantar TNS believe that the real estate market in Colombo is booming.

Meanwhile, those who disagree (roughly a fifth of the sample population) with this point of view cite ‘instances of growth and no growth’ as well as note that ‘people lack finances’.

According to LMD, well over a third (38%) of those surveyed believe there is a risk of the real estate bubble bursting. They cite ‘unreasonable prices’ and the economy not being ‘strong enough to create demand’ as the primary reasons for adopting this position.

Nevertheless, the majority (46%) view is that the real estate market will remain buoyant while the rest (16%) say they are unsure. 

LMD also reports that half the sample survey population believes property prices in the city are fair, while 33% disagree and a further 17% say they don’t know. 

Meanwhile, almost six-in-10 survey respondents feel that Colombo will soon be a world-class city.

As for sustaining the market’s buoyancy, citizens point to improved city infrastructure, adherence to regulations, evaluating construction standards, affordable housing schemes and steps to address congestion and monitor bank lending methodologies.

LMD’s publisher Media Services says the September edition of the pioneering business magazine has been released to leading supermarkets and bookstores in Colombo and the outstations.

Its cover story features exclusive interviews with a selection of key players in the real estate sector to evaluate the property market and seek answers to the burning question: is Colombo’s property bubble set to burst or will it defy convention? (For the full story, log on to www.LMD.lk).