CPG encourages real estate investment in Sri Lanka’s south coast

Globally, regardless of COVID, people still invest in real estate. In locations with low interest rates and no COVID, like Australia and New Zealand, house prices are currently higher than any time in history. In New Zealand, they are 23% times greater than COVID lows. Sri Lanka’s share market boom began months after the rest of the world. It is reasonable to believe that Sri Lanka’s real-estate boom will follow other countries’ real-estate trajectory post-COVID.

So where should people in Sri Lanka invest in real estate now, to benefit from capital gains and higher rental yields post-COVID? The Colombo apartment market is one option. A cursory glance at real estate websites show people are spoilt for choice regarding developments in Colombo. Indeed, when expatriates and tourists return en-masse, it is entirely possible that the Colombo market represents a good investment option. However, again looking globally, while real-estate prices have been increasing, real estate in coastal areas have been increasing the most. This is true not only in Australia and New Zealand, but also in Europe and other Asian countries.

In Sri Lanka, voted Lonely Planet’s number 1 tourist destination in 2019, there is clearly only so much beach. Pre-COVID, and pre-Easter bombings, many of the beachfront hotels in Southern Sri Lanka were hovering at over 70% occupancy with high end places charging Rs. 45,000 per night, per room. Consider that good apartments in Colombo charge Rs. 300,000 per month (for 3 or 4 rooms), and land prices are lower in southern Sri Lanka, the maths clearly points to greater yield opportunities in southern Sri Lanka relative to Colombo. Crystal Property Group’s (CPG’s) Crystal Sands (due for completion in just five months) was built with this discrepancy in mind. Located directly on the beach only 15 minutes from Galle Fort, Crystal Sands is a boutique serviced-apartment complex, consisting of 26 ‘Sky Villas’. Unique to Crystal Sands, all Sky Villas are fully furnished, complete with smart home integration and each with its own sunset plunge pool. With only a few Sky Villas remaining for sale at Crystal Sands, there are limited opportunities for investors to take advantage of this unique opportunity. Importantly, Crystal Sands has two fully completed apartments, allowing any investor to view CPG’s attention to detail for its ‘turn-key’ products prior to purchasing them.

Some existing Crystal Sands investors plan to sell their Sky Villa in 2022 and 2023 post-COVID, to benefit from likely capital gains. Others want to holiday in their Sky Villas some of the time and have it rented the rest of the time. A few are also of the ‘work from home’ generation. For example, one Australian investor plans to work in their Sky Villa six months of the year during Australia’s colder months, and have it rented out during Australia’s hotter months.

On the back of its success at Crystal Sands, CPG in February this year launched its second project, ‘The Six’, comprising six unique beachfront villas in Midigama, a three-minute drive from the famous Weligama Bay. Six unique villas, inspired in their design by textures and themes of six iconic beaches from around the world, ‘The Six’ is the first fully serviced integrated villa development on Sri Lanka’s south coast.

Furthermore, through its strategic partnership with reputed boutique hotel operator Teardrop Hotels, CPG aims to charm their clientele with meaningful and unforgettable experiences. With around the clock security and reception services, with the added benefit of restaurant service, personal chefs, housekeeping, and concierge to meet your every need, the residents at Crystal Sands and The Six have everything they need and more at their fingertips. At the core of CPG’s values is to prioritise client satisfaction and working together with Teardrop Hotels, helps them achieve this objective. It also ensures that anyone wishing to rent their properties to the tourist market, can do so under Teardrop’s expert management, hassle-free.

Sustainability and sustainable development are another area of interest for CPG. CPG has formed a partnership with Green Life Generation, an environmentally conscious foundation that helps companies be more sustainable in their practices and include the local community in their activities. Uplifting and empowering surrounding communities around their projects is an integral part of CPG’s commitment to sustainability.

Sri Lanka was voted Lonely Planet’s number 1 destination in 2019. It is at the doorstep of two of the largest and growing economies in India and China. In 10 years’, time, COVID will likely be a distant memory and much of the highly sought-after beachfront locations in Sri Lanka will be developed and expensive. Consider the growth trajectory of similar locations in Thailand and Indonesia.

CPG stands out from other real-estate offerings through its innovative designs, fully serviced and turn-key products and hassle-free approach for future residents and yield hungry investors alike.

Clearly, any investment clearly comes with risk. Yet with a CPG Sky Villa or Villa, your downside risk is limited to a high quality and professionally managed asset in a desirable location. In contrast, the financial upside is very high.

With CPG planning to hand over Crystal Sands in August 2021 and ‘The Six’ in December 2022, an investment in CPG products represent a limited opportunity to benefit from the likely growth in Sri Lanka’s coastal real estate belt.

Visit www.crystalsands.lk and www.thesix.lk or call +94 772 292 202 for further information. CPG is a property development company whose executive team includes Chairman Kumar Sangakkara, CEO Reza Magdon-Ismail, Head of Projects Omar Mizran and Founder Dr. Dinuk Jayasuriya.