Kurunegala: A new horizon for real estate investment

Land ownership and investment is a factor that has been held in high regard throughout generations, owing to the accompanying self-esteem and independence. Recognised as the most secure collateral by banks across the country, investment in land gives the owner the ability to utilise it for a variety of requirements; residential, construction, leasing, agriculture or even as a tool to raise funds. Thus, focusing on real estate is of extreme value as the return for one’s investments surpasses inequities. 

While the capital city of Sri Lanka experiences drastic, under-planned development, investment opportunities are increasingly stagnant. However, a new investment hub for real estate is on the rise. CBH Lands Chairman Yatila Wijemanne has been driving real estate investment in Kurunegala. With a strong belief that Kurunegala is the next investment hub in Sri Lanka, he expounded on the advantages of real estate in comparison to other investment opportunities and the ways in which the perception of investment has changed following the onset of the COVID-19 pandemic. 

Highlighting the benefits of the current investment landscape in Sri Lanka, Wijemanne explained, “In this prevailing low-interest-rate environment, funds held in banks provide negative returns, as they offer only 4% per annum, while the actual inflation is around 6.7%. Thus, one receives a negative return of about 2.7% minimum per annum by holding funds in the bank. Therefore, it is very important that you invest cleverly, and real estate, if selected carefully, offers the best returns. The key is to identify where one should invest in real estate, and choose an opportunity that will provide the highest amount of return as a percentage. Furthermore, the climate is conducive for real estate investment because home and land loans offer low-interest rates in the short and long run.”

Investment witnessed a sudden shift in the eyes of the general public following the pandemic. Influenced by the reduction in interest rates and the lowered taxes, farsighted investors rapidly progressed towards real estate. While a natural reduction in investments occurred at the onset of COVID-19, society has now eased towards the new normal with investment once again on the rise. 

Recognising the potential for investment in Kurunegala, CBH Lands has capitalised on the increase in demand and expansion within the North Western Province, paving the way for potential clients to purchase land plots through the developments undertaken by CBH Lands. 

Explaining how CBH Lands has set itself apart from competitors, Wijemanne said, “Unlike any other land developer, we have invested strongly in creating a proper database that equips us to provide the best land plots to our clientele. CBH Lands operates based on a strategic formula that we use for land selection. This is built by our dedicated research-based intelligence unit. We operate within the Kurunegala District, which gives our team an added edge of specialisation within the geographic area. As they are trained extensively on Kurunegala, our clients meet some of the best in the business, who can consult and guide them on their investment.”

“For CBH Lands, a sale is not a mere land sale. We focus on providing land which will give you a solid return, and thus can be compared to any financial tool of investment, such as a fixed deposit or equity. The potential for re-sale is highly important to us as we understand the different objectives of clients who invest in real estate. Pricing for us is about transparency and what we can genuinely provide our clients; you will get a fair price and not a high price. This is mostly maintained because the CBH team gets personally involved in the selection of land plots for each of our clients. We take a 360-degree approach to servicing our clients,” Wijemanne further divulged. 

With the current potential growth of the real estate industry in Sri Lanka, a substantial increase in prices is to be expected. In addition, with the increased inhabitation of the areas in the vicinity of the expressways, Kurunegala is an ideal area for affordable and accessible investment. The long term sustainability in real estate investment and the value additions pertaining to it make it a viable option for the future.