An increasing number of families are now opting to move to luxury apartments in search of a self-contained environment with easy access to essential facilities like quality schools, hospitals and the airport.
Green spaces among amenities from sports facilities to kids play areas, childcare centres, and entertainment facilities have become the go-to place for families and couples in search of the perfect work-life balance in the lap of luxury and convenience.
The recent increase in per capita income has been the agent of this change, tethered to the natural but rapid urbanisation and other socio-economic factors such as migration to the outskirts of Colombo. Areas such as Rajagiriya, soon to become the administrative capital of the city, set in lush green are prime real estate today for its convenient location and the availability of quality healthcare and education. Development drives of successive governments and fast-built expressways have also given it the added advantage of being directly connected to Colombo City and the airport.
In this setting, the demand for upmarket, comfortable and convenient living spaces have increased, even kick-starting the construction of more than 6,000 luxury condominiums which are to be completed by 2020. The demand for luxury self-contained living spaces constructed to environmental standards has bought several infrastructure developers to Sri Lanka, including Iconic Development Ltd., a subsidiary of Indian construction and property development group, Apurva Natvar Parikh Group (ANPG).
We have witnessed a considerable increase in the demand for luxury living spaces, especially the two-bedroom apartments, during our period here. The decreasing average size of a family and resale value in terms of investments have enhanced this demand. The decrease of the average size of a family, which has fallen to 3.5 from a four-person household, has slanted buyers, couples, and small families towards this option.
This means that the number of individuals occupying a housing unit has decreased, and it has brought about a significant demand for two-bedroom apartments. Changing socio-economic dynamics of society may have kicked off the market for two-bedroom apartments, but the financial benefits of investing in real estate in the long-term with low maintenance costs have also played its part.
The resale value of two-bedroom apartments, especially those situated on the outskirts of major urban cities and areas like Colombo, will increase in the years to come because it is the most preferred housing unit in metro cities, especially with the increasing number of nuclear families. Two-bedroom apartments in Colombo range between Rs. 30- 40 million and above and are some of the most affordable in the market today.
According to the Sri Lanka Real Estate Report published by KPMG in Sri Lanka, luxury apartments in the suburban areas are valued at price points between $120 and $199 per square foot.
Our first project, the Iconic 110 situated in Parliament Road, Rajagiriya, was received with enthusiasm from families and couples who have found the ideal location to call it home. Our experience back home ensured we created living spaces which enhanced and contained the social and environmental setting of the area.
Iconic Galaxy, on schedule for completion, is the first to have created a rooftop landscape meeting environmental and other green standards and offer buyers the serenity of an observatory, open café and barbecue, a tree house, kids play areas and sandpit, fragrance garden, meditation pavilion, a lotus pond, and topiary maze. Once completed, this one-of-a-kind apartment building will offer private guest suites, supermarkets, and business centres set in a sustainable design to ensure zero risk from flooding.
Projects such as the Iconic 110, which overlooks the Colombo Golf Course and the National Bird Sanctuary, catered entirely to these market demands. We worked with banks to set up secure financing schemes with exclusive deals for those in search of a self-contained luxury living spaces.
We made a concerted effort to harness the communal nature of human beings and offer a wide range of amenities because we want our customers to have their ideal home.
The second and ongoing project, Iconic Galaxy helped us achieve many goals in Sri Lanka, such as the first rooftop landscape that meets environmental and greening standards, a unique flood-proof construction, seven-level private club worthy of a five-star hotel, and on-site conveniences that include a supermarket, business centre, beauty salon, and laundromat.
These are just some of the amenities and conveniences that Iconic Galaxy brings to Rajagiriya to create a self-contained world that provides residents with everything they need to live a healthy, fulfilling life with all the necessities and luxuries that make day-to-day living a pleasure.
Set amidst a plethora of world-class amenities and services to complement the lifestyles of buyers, Iconic Galaxy is an example of an infrastructure developer answering the calls of local demand.
(The writer is the Managing Director of Iconic Developments Ltd.)