A survey report launched by a financial and professional services firm Jones Lang LaSalle (JLL) says that Sri Lanka is an extremely promising market for organized commercial, residential and retail real estate services. The country has been on a strong growth trajectory since the re-establishment of political stability.
The report, entitled Real Estate in Sri Lanka – Prospects and Potential. Translating Economic Growth into Real Developments in Colombo, is an in-depth analysis of the factors that are making Sri Lanka one of the most dynamic new real estate markets in Asia Pacific.
JLL predicts that Colombo’s investment grade office stock will “multiply 2.4 times in the next four to five years. The IT/ITES sector is expected to generate additional demand of seven million sq ft of office space between 2012 and 2015”.
The report noted that the city has limited options in 'experience retailing', as major shopping malls were constructed nearly 10 years ago. However, “at least two to three large, fully facilitated shopping malls are to be constructed in Colombo in the next four to five years”.
In addition, rising land prices will likely drive villas and plotted developments out of the city centre, with residential towers taking their place in various locations.
“Rising land prices in central Colombo will cause leapfrogging of real estate developments,” it said, encouraging developers to explore “integrated IT parks with office, retail and residential developments in suburban locations”.
The expected surge in tourism will require a near doubling of hospitality infrastructure in the coming years. 22,500-25,500 hotel rooms or 375-425 hotels need to be constructed during the next five years to meet the projected annual demand from tourists, the report said.
Jones Lang LaSalle officially launched its operations in Sri Lanka in conjunction with a new report on the country’s real estate potential.
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