Havelock City, compelling investment opportunity for both home buyers and investors

Offering a compelling investment proposition, Sri Lanka’s real estate market has become outlier in challenging economic times as reflected by steady growth in land prices and property sales. Seen over the past couple of months in this context, Colombo’s iconic mixed development project, Havelock City has positioned itself as one of the most attractive investment opportunities for prospective investors as it gears towards completion.

According to latest surveys published by the Central Bank (CB), Colombo’s land prices as well as condominium market have posted steady gains during last year. The Land Value Indicator (LVI), which covers land prices in the Colombo district rose to 155.1 in the first half of 2021 compared to 141.6 in the first half of 2020, recording a 9.5% increase while the Condominium Property Volume Index rose to a range between 150 to 200 index points in the third quarter of last year from the 100 to 150 index point range recorded in the previous quarter.

As the commercial development of Havelock City nears completion, it is expected to enhance both land value and overall value of residential units for both home buyers and investors. The commercial development of Havelock City comprises a 50-storey office tower named Mireka Tower and an international standard shopping mall with a fusion of fashion, conveniences, food, and entertainment bringing in an unmatched level of experiences to its residents and visitors.

Havelock City Chief Executive Officer Pravir Samarasinghe recently joined for a discussion with Daily FT to share his views on attractive investment opportunities offered by the iconic mixed-use development project with the anticipated appreciation in land value due to the upcoming shopping mall and office tower, higher rental yields and future upside potential offered by the project having the largest land bank of 18 acres.

Following are excerpts of the discussion:

By Nishel Fernando

Q: Is real estate a compelling investment option compared to other asset classes?

The reduction in interest rates has made returns on bank deposits unattractive to many. At the same time, mortgage lending rates have reduced to all-time lows. The Sri Lankan Rupee is also under severe pressure and is weakening amid high inflation. This has resulted in a shift of money away from fixed income securities to the higher-yielding property sector, which has both attractive capital gains and rental yields, making condominium investments an inflation-proof investment opportunity. 

Likewise, our stock market is trading at relatively high valuations, and with potential market volatility during these uncertain times makes equity a risky investment proposition. Taken as a whole, an investment in an apartment developed by a reputed developer makes residential properties a safe, secure, and higher-yielding investment opportunity.

Q: Can you give us an overview of Havelock City?

Havelock City is the largest mixed-use development built on 18 acres of land in Sri Lanka. The project comprises both residential and commercial components. The residential component of Havelock City comprising eight luxury apartment towers were built in phases and are now completed. Phases One and Two consisting four towers are sold out and a limited number of ready-to-move-in luxury apartments are available for immediate occupancy in our Third and Fourth and Final Phase.

The Commercial Development comprising a 50-storey office tower named Mireka Tower and an international standard shopping mall with an existing array of fashion, food and entertainment are planned for opening this year, creating an unmatched level of experiences to our residents and visitors.

Q: What are the unique features and facets that make Havelock City a standout development project in the real estate space for both home buyers as well as investors?

 As a place to call home, Havelock City, Sri Lanka’s largest fully integrated mixed-use development, is an oasis of exclusivity with world-class standards of luxury; an architectural triumph design to give never-ending space to live, work and play. A space you can call home. Havelock City, widely known as a “City within a City”; offers a unique lifestyle for its residents. Its clubhouse, the largest of its kind in Sri Lanka, at the heart of the residential towers provides a range of facilities including two gymnasiums, three swimming pools, two squash courts, a mini-cinema, a café, salon, launderette, mini-market, and banquette halls for private functions.

Other additions are the recently opened roof garden play area with basketball, badminton, and open-air multipurpose playground. The beautifully landscaped garden spanning over seven acres of greenery, lush foliage, open-air exercise corners, walking and jogging paths, a giant outdoor chess set and a mini golf putting green is a haven for nature lovers. Nothing like this can be found anywhere in the hustle and bustle of the city.

The upcoming shopping mall and office tower will make Havelock City a true ‘City within a City’ with all the conveniences at your doorstep. As an investment asset, the strong roots of the developer Overseas Realty (Ceylon) PLC, who is the owner, manager, and developer the of the iconic World Trade Centre in Colombo, makes Havelock City a safe and secure investment for you and your family.

Apartment owners at Havelock City have enjoyed above average appreciation in capital value as well as healthy rental yields due to its large land extent, sought-after location, facilities, and amenities. We believe, the upcoming Commercial Complex and the planned transportation hub including the LRT, adjacent to the development will further enhance investor returns.