By Ashwin Hemmanthagama
The ever-growing demand for houses and increasing affordability, which is supported by the Government’s major infrastructure projects including the construction of roads and highways, are expected to have a favourable impact on Sri Lanka’s apartment and condominium industry during the next few years.
Even though the housing industry was sluggish some years ago due to various reasons, industry analysts confirm that there is good demand for quality and reliable housing. They expect a booming construction sector over the next few years supported by rising affordability for housing, demand for skyscrapers and the Government’s mega infrastructure drive where the private sector will also have a key role to play by building quality and reliable buildings, mostly condominiums and apartments.
According to a recent industry analysis, the listed construction and building materials sector on the Colombo Bourse is expected to provide a 46% average return (annualised 29%) over an 18-month period, well above the expected market return.
The middle-income group’s increased affordability coupled with the prevailing favourable interest rate regime and accelerating urbanisation has increased demand for housing and apartments drive demand where skyscraper constructions will continue to dominate in the quality apartments and condominium sector.
Not many companies engaged in the infrastructure and construction industry in Sri Lanka have a diverse advantage over cost and quality. But going against the odds, the Blue Ocean Group, which is highly reputed for its professionalism, integrity and expertise, has been at the forefront of the evolution of the real estate industry.
Being in the industry for over four decades with a proven track record, the group’s construction arm, Link Engineering, has pioneered key construction projects of different scale. With Link Engineering being awarded projects valued at over Rs. 6 billion in the last few months, Blue Ocean Group has already established a solid financial strategy for the next few years.
The visionary Chairman of the Blue Ocean Group, S. Thumilan, believes that the forthcoming Budget 2018 will provide attractive benefits for the sector, which will enable them to build high-quality projects at an affordable price.
“The expectation from Budget 2018 is to introduce wide-ranging initiatives to support and encourage the construction and infrastructure industry in general and the condominium sector of Sri Lanka. Better than the Budget 2017, I believe that the forthcoming budget will propose many positives and encouraging changes that will undoubtedly boost the property, construction and infrastructure sectors of the country. From Budget 2017, the Government reemphasised the huge potential for the construction industry, anticipating it to grow into a fully-fledged Rs. 6,500 billion high-value industry in the next five years,” said Thumilan.
According to him, the Blue Ocean Group is fortunate to play an integral role in the country’s exciting business landscape. “I am indeed proud that my team and I have now etched the name of the Blue Ocean Group strongly in the annals of the country’s development history. We are undoubtedly leading the way to the future, having already begun changing the way the corporate and real estate landscape is looking ahead. I have always said that the success of the Blue Ocean Group of Companies is in creating organic growth which cascades to effective solutions geared to meet global challenges. This in turn contributes positively to the global development agenda and to the ecosystem that we all contribute to,” he added.
The Blue Ocean Group of Companies has evolved over the years to become a versatile conglomerate and adopts an inspired namesake from ‘Blue Ocean Strategy’, one that describes growth and profit.
With a diverse portfolio to its name that includes its flagship brand Blue Ocean, the Group is taking bold strides to uphold a reputation of ethical, innovative and constructive practices not only in Sri Lanka but in the Asia Pacific region.
The core business philosophy behind the company is the ‘Blue Ocean Strategy’, which generally refers to “the creation by a company of a new, uncontested market space that makes competitors irrelevant and that creates new consumer value, often while decreasing costs.” In other words, creating and taking a completely new concept to the market by lowering costs, thereby delivering an affordable product to existing and new customers, while eliminating competition.