Foreign nationals 60% of Serenia Residences buyers

Sri Lanka’s luxury beachfront properties are currently riding the crest of a real estate boom from both tourism as well as investment growth.

For generations, Sri Lanka’s sun-kissed sandy beaches have been the jewel in the crown of South Asia’s booming tourism industry and an important foreign exchange earner of the country.

Tourism has also started to feed the real estate industry in Sri Lanka. A report by the Sri Lanka Tourist Board, released in May 2018, records a 15% growth in tourism compared to last year for the January to May period, while another report states that there are about 10,000 expatriates living in Sri Lanka.

These, coupled with rising investments by foreigners, have resulted in unprecedented property price increases in recent years. The average value of beachfront properties grew by 50% in 2017, according to the Oxford Business Group Report for Sri Lanka, 2018, while in Talpe, properties grew by 300% over the last three years.

“This has resulted in Sri Lanka’s Serenia Residences experiencing as much as a 60% investment from foreign nationals.  Foreign investors have observed that Sri Lanka is traversing the same development direction as Singapore or Hong Kong, starting with the expansion and upgrading of the Bandaranaike International Airport being carried out by the Japan International Cooperation Agency, which will provide a significant boost to the tourism industry by raising the capacity to 15 million passengers per year. Traveling from Colombo to Galle now takes as little as an hour and a half from the previous four hour drive, and the extension of the Southern Expressway, due to be completed by 2019, is yet another advantage and attraction for potential investors,”, said Serenia Residences Co-Founder Sabina Karunanayake.

Foreign investor exports, including accommodation and money spent in the country, totalled Rs. 725.2 billion ($4.9 billion) in 2017, according to the World Tourism & Travel Council.  Sophisticated foreign investors are now recognising the appeal of the Southern coast of Sri Lanka, and are buying primary residences here, as well as seasonal homes and investment units. “They appreciate the safety and security of a freehold condominium unit on and above the 4th floor, and while other countries such as Bali or Thailand have historically been the go-to market for these investors, price points and lifestyle have shifted the focus of many foreign investors to Galle, due to the fact that Galle is surrounded by all major touristic attractions. The famed Unawatuna bay, the International Cricket Stadium, museums, art galleries, and the proposed Yacht Marina in Galle Fort, as well as a wealth of other entertainment options, are among the many advantages of the Galle Fort lifestyle. It’s a beautiful location where individuals, couples and families can find spacious residences at per-square-foot prices that are nearly half those of Bali or Thailand”, said Karunanayake.

The newest addition to Serenia’s family are Adam Martin Riley and his partner Raffaela Bichiri, who flew from their home in Hong Kong to sign sales and purchase agreements for the purchase of a 2-Bedroom Suite Residence. The reason they picked Serenia was its great location and good investment proposition.  “The foreign buyers in Serenia have been steadily building momentum. Italian, German, British, Australian and Singaporean buyers, in particular, are finding that Serenia offers many attractive options, both for those seeking primary residences, or second homes and investment properties.” 

The country’s rising global tourism profile is increasingly attracting international interest in the sector. Predicted capital appreciation of Serenia Residences is 50% in 2 years, and rental yield is 8-10% USD per annum.