24 Beach Properties to be opened in Sri Lanka for Tourism Investment

Investing in Real Estate is a popular trend these days in Sri Lanka among veterans and young professionals in the corporate sector. Real Estate investments are considered to be safe and well rewarding on ROI. Nevertheless investing in real estate is not as simple as it seems on broachers and commercials. To purchase, manage and re-sell a property requires due diligence. It takes months and a lot of research and effort before investing your wealth into a property, either a land, apartment or house.

TYPE OF PROPERTY

The main important factor would be the type of property you would have to choose to invest. Usually the categories to invest includes residential or commercial real estate. The residential real estate is the most common one in which the investors buy a property, rent it out for few years and then sell it with a marked-up margin. The commercial real estate investment is much more rewarding with higher profit margin and there has been a surge in commercial and industrial real estate investments in Sri Lanka.

LOCATION

Another crucial factor to consider when investing in real estate is the location. Whether it is an apartment, house or land; finding a location that is accessible or appreciate in demand and value in the future is a must. The value of your property depends on this factor. Locations surrounded with essential services such as Schools, Banks and Super Markets are considered to be prime areas.

FINANCES

Real Estate investment requires a lot of capital where sufficient funds are required to buy and maintain the property before you are able to sell and make a profit. So check whether you have sufficient fund not only to buy but also to maintain the property well to hold the value.

MARKET CONDITIONS

It is of utmost importance to have a thorough knowledge on how market conditions influence the real estate market trend. It is good to sell your property when the property prices are very high and bad to sell when market conditions are low. But in bad times, it is good to buy properties since the prices of properties are low.  Possessing a property provides a sense of ownership and respite in times of crisis such as the recent Covid Pandemic.

There has been an increased amount in foreign buyers from UK, USA, Australia, Canada and Middle-East interested in buying properties in Sri Lanka. This increased interest is mainly due to the decline in rupee’s standing against the USD.

In the current market trend, even the value of old properties such as apartment’s built in the early 2000s continue to grow in value despite the fact that usually apartments lose their value overtime.

More than 6000 new residential units are estimated to enter the Lankan real estate market. The most in demand seems to be 3 bedroom units among all levels of dwellings over the past years.

Residential properties have become a good hedge against rising inflation in this Island.