Business
Colombo’s looming housing crunch: ‘Brace yourself for rising apartment prices’
By Rohan Parikh
As the Sri Lankan economy continues to grapple with the effects of the recent economic crisis and the slow pace of recovery, the country’s real estate market is also struggling to cope, particularly since the upcoming housing crunch in Colombo is now starting to raise concerns for both developers and prospective homeowners alike.
Colombo’s current inventory of apartments is expected to sell out soon, and contrary to popular belief, only a handful of new projects are currently in development as most developers have been adversely affected by the crisis- thus it is likely that the market will face a shortage of apartments.
This is a worrying trend to point out, as this indicates that the limited availability of apartments will lead to a surge in apartment prices, making it difficult or near impossible for prospective homeowners to find affordable housing in the city.
The housing crunch in Colombo is not only a concern for developers and prospective homeowners but also for the overall economic growth of the country. The lack of affordable housing can lead to a decrease in workforce, as people may not be able to afford living in the city and may have to relocate to other, more sub-urban areas. This could have a significant impact on the demand for goods and services and ultimately affect the country’s economic stability.
However, Sri Lanka has received a $3 billion loan from the International Monetary Fund (IMF) to help resolve the spiralling economic crisis that began after Sri Lanka defaulted on its debt in April 2022.
To address the upcoming housing crunch in Colombo, it is imperative that the Sri Lankan Government takes proactive steps to incentivize developers to invest in new projects. This could include offering tax breaks and other financial incentives, as well as streamlining approval processes and providing infrastructure support.
By encouraging the development of new housing stock, the government can not only help to alleviate the shortage of affordable housing in Colombo but also boost economic growth and create job opportunities in the construction sector. This, in turn, could help to stimulate demand for other goods and services, contributing to the overall development of the country’s economy.
However, given the current state of the real estate market and Sri Lanka’s economic situation, it is unlikely that these incentives will have an immediate impact, indicating that it could be a while before developers are able to make sizeable investments in new projects, leaving a gap in the market for new housing options.
As the Sri Lankan real estate sector confronts the challenges of a post-crisis landscape, it’s clear that the future of the industry depends on the ability of local developers to adapt and innovate. The upcoming housing crunch in Colombo is just one of the many obstacles that developers must overcome to succeed in the market. But with the right mind-set, strategies, and partnerships, there is still a path forward for the industry.
Iconic Developments is well-positioned to navigate the upcoming housing crunch in Colombo. Iconic Developments has established itself as a leading developer in the Sri Lankan real estate market, with a reputation for delivering innovative and high-quality projects that meet the evolving needs of the market. The company’s commitment to excellence has earned it a loyal customer base that values its attention to detail, customer satisfaction, and sustainable development practices.
Iconic Developments’ track record of success, commitment to excellence, and customer-centric approach make it a highly sought-after developer in the Sri Lankan real estate market, poised to navigate the upcoming housing crunch in Colombo and deliver sustainable, innovative projects that meet the evolving needs of the market.
Moreover, Iconic Developments has already taken steps to ensure that it has a strong pipeline of projects in the coming years. By strategically acquiring land in key areas of Colombo and investing in the latest technology and construction methods, the company is well-equipped to deliver new projects that meet the evolving needs of the market.
In conclusion, while the challenges facing the Sri Lankan real estate industry are daunting, the future remains bright for developers who are willing to adapt and innovate. By focusing on quality, sustainability, and customer satisfaction, developers can thrive in the post-crisis landscape, and create a better future for everyone.
Rohan Parikh is the Managing Director of Iconic Developments and has had a 20+ year career in Real Estate Development and graduated from the Wharton School of Business in the U.S.
Business
AHK Sri Lanka champions first-ever Sri Lankan delegation at Drupa 2024
The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) proudly facilitated the first-ever Sri Lankan delegation’s participation at Drupa 2024, the world’s largest trade fair for the printing industry and technology. Held after an eight-year hiatus, Drupa 2024 was a landmark event, marking significant advancements and opportunities in the global printing industry.
AHK Sri Lanka played a pivotal role in organising and supporting the delegation, which comprised 17 members from the Sri Lanka Association for Printers (SLAP), representing eight companies from the commercial, newspaper, stationery printing, and packaging industries. This pioneering effort by AHK Sri Lanka not only showcased the diverse capabilities of Sri Lanka’s printing sector but also facilitated vital bilateral discussions with key stakeholders from the German printing industry.
Business
Unveiling Ayugiri: Browns Hotels & Resorts sets the stage for a new era in luxury Ayurveda Wellness
In a captivating reimagining of luxury wellness tourism, Browns Hotels & Resorts proudly unveiled the exquisite Ayugiri Ayurveda Wellness Resort Sigiriya. This momentous occasion, celebrated amidst a vibrant and serene grand opening on the 6th of June, heralds a new chapter in the Ayurveda wellness tourism landscape in Sri Lanka. Nestled amidst 54 acres of unspoiled natural splendour, Ayugiri features 22 exclusive suites and stands out as the only luxury Ayurveda wellness resort in the country offering plunge pools in every room, rendering it truly one-of-a-kind.
The grand opening of Ayugiri Ayurveda Wellness Resort was an enchanting event, where guests were captivated by the melodies of flutists and violinists resonating through Sigiriya’s lush landscapes. As traditional drummers and dancers infused the air with vibrant energy, Browns Hotels & Resorts’ CEO, Eksath Wijeratne, Kotaro Katsuki, Acting Ambassador for the Embassy of Japan and General Manager, Buwaneka Bandara, unveiled the resort’s new logo, marking a significant moment witnessed by distinguished guests from the French Embassy, Ayurveda and wellness enthusiasts along with officials from the Sigiriya area, LOLC Holdings and Browns Group.
“Our strategic expansion into wellness tourism with Ayugiri Ayurveda Wellness Resort Sigiriya symbolises a significant milestone for Browns Hotels & Resorts. Wellness tourism has consistently outperformed the overall tourism industry for over a decade, reflecting a growing global interest in travel that goes beyond leisure to offer rejuvenation and holistic well-being. By integrating the timeless wisdom of Ayurveda with modern luxury, we aim to set a new standard in luxury wellness tourism in Sri Lanka. Whether your goal is prevention, healing, or a deeper connection to inner harmony, Ayugiri offers a sanctuary for holistic well-being” stated Eksath Wijeratne.
Ayugiri encapsulates the essence of life, inspired by the lotus flower held by the graceful queens of the infamous Sigiriya frescoes. Just as the lotus emerges from the murky depths, untainted and serene,
Ayugiri invites guests on a journey of purity and rejuvenation, harmonised with a balance of mind, body and spirit, the essence of nature, echoes of culture and the wisdom of ancient Ayurvedic healing.
Business
HNB General Insurance recognized as Best General Bancassurance Provider in Sri Lanka 2024
HNB General Insurance, one of Sri Lanka’s leading general insurance providers, has been honored as the Best General Bancassurance Provider in Sri Lanka 2024 by the prestigious Global Banking and Finance Review – UK.
The esteemed accolade underscores HNB General Insurance’s unwavering commitment to excellence and its outstanding performance in the field of bancassurance. Through dedication and hard work, the HNB General Insurance team has continuously endeavored to deliver innovative insurance solutions, cultivate strong relationships with banking partners, and provide unparalleled service to customers nationwide. This recognition is a testament to the team’s dedication and relentless pursuit of excellence in the bancassurance business.
“We are honored to receive this prestigious award, which reflects our team’s tireless efforts and dedication to delivering value-added insurance solutions and exceptional service through our bancassurance partnerships,” said Sithumina Jayasundara, CEO of HNB General Insurance. “This recognition reaffirms our position as a trusted insurance provider in Sri Lanka and motivates us to continue striving for excellence in serving our customers and communities.”