Sri Lankan developers say property market survived bubble fears
ECONOMYNEXT – A prophesied collapse in Sri Lanka’s property market has not happened with industry fundamentals still strong, the head of the island’s condominium developers organisation said.
“It takes financial boldness to invest in real estate, more than in trading and services,” said Pradeep Moraes, chairman of the Condominium Developers Asssociaation of Sri Lanka.
The number of equipment, material and ancillary manufacturers and professional and support services who have opened offices in Sri Lanka demonstrate the robustness and vibrancy of Sri Lanka’s market, he told an architecture and building industry forum.
Sri Lanka’s property sector has expanded rapidly in recent years with newer and modern standards and ways of designing and building being introduced, he said.
“The fundamentals are sound and it is a negative mindset that led to the surmise of the possibility of a real estate bubble a year-and-a-half ago,” Moraes told the Architecture Xtudio forum.
“The fact the industry has stood firm is more than enough evidence it has passed the litmus test. The collapse prophesied thankfully did not come to pass.”
The forum, held by Foxhouse Lanka (Pvt) Ltd., brought together architects, contractors and developers.
Moraes said the local real estate sector had now adopted modern standards.
“Many ambitious projects keep raising the bar from an architectural and construction perspective. Industry standards keep getting upgraded along with skills transfers.”
(COLOMBO, 30 October, 2018)