Land prices in Greater Colombo up 64% as demand grows

Demand for land in Thalahena, Gothatuwa and Kolonnawa are rising significantly, resulting in the highest percentage increases in land prices in Greater Colombo, according to a recently concluded study. 

LankaPropertyWeb.com analysed postings in its website to ascertain the change in asking prices for land in the Greater Colombo area. Thalahena topped the list, recording a year-on-year percentage increase of 64%. 

Ragama, Gothatuwa and Kolonnawa continue to be popular with land prices recording a percentage increase of between 55-35% (see figure 1).

The percentage increases are in line with the increases noted in the asking prices of land. In Thalawathugoda, the average price per perch is between Rs. 1.7-2 million. Interestingly, with the spike in percentage increase, neighboring suburb Thalahena joins the same price category.

While land in Kolonnawa and Wellampitiya both fall within the range of 700,000 to Rs. 1 million, both have displayed a remarkable increase in land prices over the last year. The implications of these percentage increases in average price per perch of land are far-reaching. 

Notably, the most expensive areas in Greater Colombo for average perch prices remain much the same as last year. Areas that are closest to Colombo show the highest prices, with Dehiwala and Nawala the most expensive of the areas in Greater Colombo (see figure 2).

As Colombo is the commercial hub and where most of the workplaces are based, it is not surprising that land prices continue to be on an upward trajectory. But as the two figures indicate, people are seeking living spaces outside of the city. This is most noticeable to the east of the Colombo city. 

Although there are certain pockets where land prices have shown slower growth i.e. Nugegoda, Rajagiriya and Pannipitiya areas (this could be due to prices already being high in these areas), prices in Athurugiriya, Pita Kotte, Maharagama, Kottawa and Hokandara all indicate an increase in percentage between 25-32%. 

While such demand for land could be partially driven by better connectivity enabled through improved transportation and the rapid development of the sub-urban centres, families are also seeking more affordable, less congested locations.

Since further development of the Colombo centre remains a high priority for the Government, land prices in Greater Colombo will continue to increase. As the jump in asking prices per perch in Thalahena, Gothatuwa and Kolonnawa exhibits, previously under-developed locations, which are now increasingly becoming accessible due to infrastructure changes, will continue to gain traction, largely determined by their proximity to highly developed, desirable suburbs of Colombo. Land prices therefore will continue to increase further, as potential buyers seek out land for purchase in proximity to the Colombo city. 

Driven by the desire to help people find a piece of land that they can afford and to highlight the fact that there are still affordable lands available in the metropolitan areas, LankaPropertyWeb.com is launching a campaign to assist potential buyers find plots of lands that is within their budget and in the areas that they desire. 

Named ‘Athe athi mudalata idamak soyaganna’ or ‘Find a land that’s within your budget’, the objective of the campaign is to help potential buyers sieve through the many options available to them. A dedicated page for the campaign has been launched at www.lankapropertyweb.com/lands/.

“With the land prices in urban areas increasing unabated and land considered as one of the safest and best investments out there, prospective buyers may easily become frustrated and discouraged in their mission to find that ideal plot of land. Our campaign is primarily targeting those buyers with the aim of matching their location of choice with their budget. We aim to help first-time and experienced buyers navigate this rather crowded sector and find land that also holds great promise, especially since Colombo will continue to reap the benefits of better infrastructure and connectivity,” remarked LankaPropertyWeb Managing Director Daham Gunaratna.

LankaPropertyWeb.com continues to be Sri Lanka’s premiere real estate website, showing an extraordinary growth in traffic and other vital metrics over its twelve years of operations. With over two million users conducting more than 4 million visits annually and over 17,000 advertisers offering a variety of property-related services, the website continues to be the “go to” place for serious and prospective buyers and sellers of real estate in Sri Lanka. 

The full list of average land prices and price changes can be viewed from: https://www.lankapropertyweb.com/house_prices.php#lands-wp