Commercial property potential seen strong in Sri Lanka
ECONOMYNEXT – The demand for commercial property is growing strongly in Sri Lanka where the focus has been on residential properties especially at the high end, a real estate analyst said.
"The commercial property market had been ignored for many years because developers were getting good returns on residential properties where margins were good," said Roshan Madawela.
"Now we’re seeing the entry of more commercial projects – international investors are very much interested,” said Madawela, managing director of Real Estate Intelligence Unit, a real estate consultancy.
Demand for commercial space in Colombo is not expected to slacken given the island’s macro-economic outlook, he told the annual real estate conference held by Lamudi, an online real estate platform.
There was strong demand for good commercial space with air-conditioning, security and parking facilities, Madawela said.
Retail malls were also important from a developer’s perspective to rent out, he added.
The growth of malls is closely connected with the island’s “tourism success story” as local footfall was not enough, Madawela said. (Colombo/October 23 2015)