Kandy property market is growing; tourism to benefit from new highway

Kandy has often played second fiddle to Colombo and its suburbs’ property market, however is gaining in popularity recently due to the Central Expressway coming up and as more Kandyan expats look to buy property back home. 

Although in the shadows of Colombo’s growing market, Kandy is the second most popular location in the country for property sale and rental searches, according to property website LankaPropertyWeb.com. 

The average prices of houses for sale in Kandy (4 bedrooms) have increased by 6.7% in the last year and average land prices have gone up by 22%. Land prices however differ greatly based on the locality, accessibility and the gradient of the land. It would only be a matter of time before other developers also start targeting the hill capital. 

While prices of land for sale in Kandy town is quite high and can be up to 4 million per perch, land sales closer to the proposed highway exit and at more up and coming picturesque areas such as Digana near the Victoria Golf range, Pallekelle, Hantana and along the Mahaweli river has been gaining in interest and price. 

The growing property market has also attracted apartment developers to the city with developers starting to build luxury apartments in the city. Dynasty Residence, the 19 floor-93 unit project is the first such luxury project to be built in Kandy and sits next to the iconic Mahaweli River. It’s expected to be completed by early 2018. The Chairman of GVR – the company behind Dynasty – Mahasen Samaravijaya, a Kandyan himself and one of the early advocates of bringing in high rise luxury living to Kandy has made sure that the new development enshrines the aesthetics and eco friendliness of the hill capital, while ensuring that the building is built according to strict safety standards, but not compromising on the luxurious living facilities offered to its residents. 

Commenting on the significance of Dynasty being the first mixed-use development in Sri Lanka to be built in accordance with the US Green Building Council’s LEED Standards, he said, “Dynasty Residence serves as a prime example of how luxurious living can be integrated with healthy, green and high-performing residential buildings. This accomplishment revolutionises the built environment, a major milestone that leads the way towards a sustainably built environment in Kandy. Achieving LEED certification is more than implementing sustainable practices. It signifies GVR Lanka’s green building leadership and commitment of providing best class residences to their clients.”

The Kandy expressway also referred to as the ‘Sri Dalada Highway’ is being constructed on three phases with the first phase from Kadawatha to Mirigama, second phase from Mirigama to Kurunegala and the third phase from Kurunegala to Kandy. The expressway will connect two of the busiest commercial cities in Sri Lanka and will cut down transit times and traffic congestion massively. It will also enable both Kandy and Colombo to connect more easily with the rest of the country laying the foundation for an industry driven economy. 

Kandy has also been chosen as the location for Sri Lanka’s first smart city. Smart City is an urban area which can support economic development and quality of life by ensuring key infrastructure facilities are provided uninterruptedly. Many sources list the key features of a smart city include, adequate water supply, uninterrupted electricity supply, proper sanitation, including solid waste management, efficient public transport, affordable housing, good governance, health and education, sustainable environment, and safety and security of citizens. When Kandy is able to implement the smart initiative to a considerable degree, it can also be expected that this will result in a surge in residential and commercial real estate as a prime location due to being a smart city.