• New project launches surge, driving up prices in Colombo district
• Pre-sale deposits main funding source for developers; bank loans and equity follow

Sri Lanka’s condominium industry sees a rise with increased prices in the second quarter of 2024 as new projects by major developers jumped by almost 50% in the quarter, Central Bank data showed.

According to the price index for new condominiums, an upsurge in prices of new condominiums within the Colombo district was observed during Q2 of 2024.

The condominium market survey showed the index reached 240.9 during the quarter recording a quarter-on-quarter growth of 14.3%.

Moreover, the condominium property sales volume index, which covers the Colombo district and other major cities, increased significantly during Q2 as the index value recorded at 141.4 with a 47.8% increase compared to the previous quarter due to the launch of new projects by major developers.

The majority (about 56%) of condominium sales during Q2 was reported in the Colombo district followed by Gampaha and Kalutara districts.

Also, the largest proportion of transactions, accounting for 54%, occurred within the Rs. 25-50 million range, during Q2.

When the percentage of price categories were compared with the previous quarter, transactions below Rs. 25 million showed a slight decrease, while transactions between Rs. 50-75 million remained broadly unchanged.

“Three key funding sources for condominium developments were pre-sale deposits, bank loans and equity,” the Central Bank said, adding that pre-sale deposits were the main source of funding (38%) while bank loans and equity were utilised by 33% and 29%, respectively.