Sri Lanka’s construction sector in particular apartment developers faces numerous challenges due to certain import restrictions on tiles, aluminium and rising global prices of steel and copper. These factors are putting a strain on the construction of housing and apartment units on time in a big way.
“On the supply side, it is likely that there will be less investment for housing and luxury apartment projects. As a result, Sri Lanka will witness a shortage of housing and apartment units the next year, Home Lands Chairman and Managing Director Nalin Herath - told Daily News Business.
Moreover, the prevailing lower interest regime in the country has however pushed the demand for land, housing, office spaces, and apartment units in a big way. As a result, existing housing and luxury apartment units are selling at a rapid pace.
Higher costs of production triggered by import restrictions have also resulted in apartment prices soaring by 20 percent. Land prices in Colombo suburbs in particular Malabe, Kottawa, Kadawatha have increased by 50-70 per cent during the last 7-12 months.
Furthermore, Herath said upcoming projects in particular Port City development is undertaken by well known international developers will not pose any threat to projects undertaken by local apartment developers. Herath however noted that local developers would have to be on par with foreign counterparts thereby matching international standards.
0 comments: