Saturday Oct 10, 2026
Saturday Oct 10, 2026
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The Colombo-centric condominium market is shrinking and getting pricier, with sales falling and buyers concentrating in higher-priced apartments, Central Bank of Sri Lanka (CBSL) data showed.
Most buyers financed their purchases with their own funds, with bank loans accounting for about a quarter, a pattern broadly unchanged from a year earlier.
The CBSL Price Index for New Condominiums in the Colombo District rose 3.2% year-on-year (YoY) to 280.6 in the April-June quarter.
That puts new apartment prices at 2.8 times their 2019 level. The index is adjusted for differences in property characteristics such as size and location, so it tracks underlying price change rather than shifts in the mix of units sold.
Sales activity moved the other way. The Condominium Property Sales Volume Index fell 6.7% year-on-year to 190.2. This index measures the number of sales transactions reported by developers in the Colombo District and other major cities.
The decline in volumes came alongside a marked shift towards costlier units. Apartments priced above Rs. 50 million accounted for 55% of sales in the quarter, against 34% a year earlier. Within this, units above Rs. 75 million made up 26% of sales, up from 19%, and those between Rs. 50 million and Rs. 75 million rose to 29% from 15%.
The lower end of the market shrank sharply. Units priced below Rs. 25 million made up just 5% of sales, down from 17% a year earlier and 19% in the previous quarter. The Rs. 25 million to Rs. 50 million band remained the largest single segment at 40% of sales, although this was below the 49% recorded a year earlier.
The geography of demand narrowed in a similar fashion. Colombo District accounted for 78% of transactions in the quarter, made up of 73% from single condominium projects and 5% from mixed development projects. A year earlier, Colombo’s share was 50%. Single condominium projects in Gampaha and Kalutara, which typically offer lower price points, saw their share fall to 20% from 48% a year earlier and 32% in the previous quarter. Projects in other areas, including Galle, Kandy, Sigiriya, Nuwara Eliya and Nilaveli, accounted for 2%.
Developers’ existing stock remained largely absorbed. Some 96% of units in completed single condominium projects and 81% in completed mixed development projects had been sold. In ongoing single condominium projects, 55% of units had been reserved, leaving 45% available.
Pre-sale deposits remained the largest source of funding for condominium developments at 43%, followed by equity at 29% and bank loans at 28%. This reliance on buyer deposits leaves new projects closely tied to the pace of off-plan sales.
On the demand side, purchases were made predominantly by Sri Lankan residents buying for immediate occupancy, the CBSL said. Most buyers used their own funds, with bank loans financing a minority of purchases. Dual citizens and foreigners accounted for a small share of buyers.
Asking prices across Colombo’s wider property market also rose strongly. CBSL’s Asking Price Indices for the Colombo District showed year-on-year increases of 15.2% for land, 12.6% for condominiums and 9% for houses in the second quarter.
The monthly data, however, show diverging trends within the quarter. The condominium asking price index climbed steadily to 219.4 in June from 208.2 in March, a rise of 5.4% over the three months, and is up 8.2% since January. House asking prices rose 3.1% over the same three months to 192.8. Land asking prices eased to 173.2 in June from a peak of 176.9 in March, a decline of 2.1%, despite remaining well above year-earlier levels.
The CBSL survey covered 20 condominium developers in the second quarter.
