‘Green living’ property boom eroding Colombo’s ecosystems: CSF warns

Thalangama wetlands

• Nature-adjacent properties command price premiums despite weak environmental safeguards
• 65% of Colombo District property listings use nature-linked marketing language
• Property prices in some areas increasing up to 40% annually

Colombo’s expanding real estate market is increasingly commodifying proximity to nature, placing growing pressure on wetlands, paddy fields and peri-urban landscapes, and driving up property prices by an estimated 30 to 40% annually, according to a new report by the Centre for a Smart Future.

The study, titled “Shifting Grounds: Unpacking the Tensions Between Real Estate Development and Nature in Colombo”, authored by Medhini Igoor and Senith Abeyanayake, examines how demand for so-called green living is reshaping development patterns in nature-rich suburban areas, with a focus on the Thalangama Lake and surrounding neighbourhoods.

The report finds that buyer preferences for proximity to lakes, wetlands and green spaces have become a key driver of property demand, particularly among middle- and upper-middle-income households seeking relief from congestion in central Colombo. While access to schools, hospitals and transport remains the primary consideration, green spaces are increasingly viewed as indicators of quality of life, allowing properties with scenic views or access to protected or semi-protected landscapes to command significant price premiums.

Developers have responded with a growing number of nature-themed projects, frequently marketed using sustainability-linked language and imagery. A content analysis of real estate advertisements in Colombo District found that 65% of property listings used nature-related descriptors. However, the report notes that recognised certification systems such as LEED or GreenSL remain rare and inconsistently applied, with no binding standards governing environmental claims in real estate marketing.

Infrastructure expansion has further intensified development pressures. Improved connectivity through highways and arterial roads has driven rapid increases in land values along suburban corridors such as Kaduwela, Malabe and Thalawathugoda, where property prices have risen by an estimated 30 to 40% annually. While infrastructure investment has enhanced mobility and access to economic opportunities, the report finds that it has also accelerated land-use conversion and ecological fragmentation.

The Thalangama Environmental Protection Area is cited as a case in point. Improved connectivity has increased its appeal to developers and buyers while exposing sensitive ecosystems to heightened pressure. Community opposition to projects such as the proposed elevated highway through the area, which was later cancelled following public resistance, is highlighted as evidence of the social and ecological limits of infrastructure-led urbanisation.

On the supply side, the study finds that Colombo’s real estate sector is dominated by private developers targeting high- and middle-income buyers, while state-led affordable housing remains limited in scale. As land becomes scarce and expensive in central Colombo, developers have shifted towards suburban belts, resulting in a pattern of horizontal sprawl interspersed with high-rise developments. This has produced fragmented landscapes of condominiums and gated communities interwoven with remnant wetlands and paddy fields.

The report identifies fragmented planning and governance as a central weakness. Multiple city plans, including the Western Region Megapolis Master Plan and various Urban Development Authority development plans, articulate differing visions for Colombo, with limited emphasis on liveability or integrated green space management. Zoning regulations are described as ambiguous, with exemptions for infrastructure projects enabling encroachment into environmentally sensitive zones.

Governance challenges are compounded by overlapping institutional mandates. Within the Thalangama Environmental Protection Area alone, eight Government agencies share responsibility, leading to weak enforcement and regulatory gaps. The Urban Development Authority’s power to rezone land often overrides environmental protections, while legal provisions allowing the conversion of so-called abandoned or low-yielding paddy land have been used to justify reclamation.

Environmental approval processes are also found to be inadequate. Environmental Impact Assessments are required only for large-scale or prescribed projects, allowing many high-density developments to proceed without comprehensive assessments. The cumulative impact of multiple smaller projects is not systematically evaluated, and limited public access to land-use data constrains community oversight.

At the community level, residents in Thalangama and surrounding areas report rising traffic, noise and waste burdens, alongside reduced air quality and heightened flood risk. Rising land prices have also displaced long-term farming families, altering the social fabric of these neighbourhoods. At the same time, the report notes the emergence of community-based environmental activism, with local groups mobilising against environmentally damaging projects.

The study concludes that while developers, regulators and residents hold differing views on Colombo’s future, there is broad agreement on the need for clearer zoning, stronger protection of suburban green spaces and more coherent urban planning. Without reforms to planning, governance and environmental oversight, the report warns that Colombo’s current development trajectory risks undermining the natural systems that underpin the city’s long-term liveability and resilience.