Friday, March 6, 2020

Sotheby’s positive about interest re-emerging in Sri Lankan real estate


Sotheby's International Realty in Sri Lanka says investor interest in properties on the island of the Indian Ocean is re-emerging, and the company is looking for market properties outside Colombo's capital. "Sri Lanka Sotheby's International Realty is satisfied to announce that it is receiving positive signals from the market, with increasing interest from various quarters around the world in Sri Lanka and particular properties on the island," the real estate broker.

"Sotheby's expects 2020 to be much better than 2019." With interest re-kindled in Sri Lanka, Sotheby's is looking to market properties outside of Colombo. "The company is looking for character properties, historical heritage, modern architectural masterpieces, properties situated in places of natural beauty, all of which Sri Lanka has in abundance," the company said.
The firm is marketing Sapphire Residencies, a high-rise luxury property in the capital Colombo promoted by India's ITC group. In 2019, an economic downturn, value-added tax on Easter Sunday assaults on residential property, and political instability hit Sri Lanka. "All these factors now appear to be easing to allow more hope and optimism among all stakeholders," said Sotheby's. While interest is growing, prices are under pressure in the country, and ' realistic ' expectations will guide sales, the firm said.
"The gradual electoral permanence and progress in the overall security situation, although it will still be a buyers ' market, has boosted confidence in the local and international market," the company said.
"It is evident that estate prices will tweak to the current market circumstances, where realistic seller expectations will improve sales chances.” It is only natural that after such a marked downturn in the market, international buyers will be scouting attractive investment opportunities on the island."
Also, increasing demand from local and international companies for quality office and business space is spurring private-sector investment. Alone at the Port City, the suggested International Financial Center will add 5.65 million square meters of new mixed-use property.
Attracted by the robust economic growth, developers from far away are increasingly focusing on Sri Lanka, particularly Colombo; concerning significant current Chinese investment in Colombo, the Japanese company Belluna Co. has lately announced plans to invest US$ 500 million in real estate projects here.
OSL Take: Sri Lanka's government's aggressive development program has further risen property prices, making properties on the island an accessible investment opportunity with short-term advantages. The proposed project of Colombo Port City will also improve land value. Foreign businesses/investors could, therefore, explore possibilities for business/investment in the real estate industry in Sri Lanka.
 VBS/AT/20200306/Z_TB3


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