In the wake of the recent floods in several parts of the country, some high end property sellers are explicitly saying that their properties were ‘flood free’ as a selling point and a marketing ploy, officials of the Real-Estate Intelligence Unit (RIU) revealed
Director and Chief Executive Officer, RIU, Roshan Madawela speaking to Nation noted that some of the high end residential areas that were affected could experience an increased level of properties being offered on sale within the next three to six months, as property owners would attempt to balance their fear of floods with a need to tread carefully in the property market.
The Government last week pointed out that it was yet to identify separate locations for those displaced due to floods and landslides since the officials were still in the process of estimating the damages caused.
Secretary to the Ministry of Housing, W.K.K. Athukorala said that the Government would commence looking for appropriate locations to resettle the residents of those whose areas have been demarcated as High Security Zones. “But it is going to be a challenge since we have to ensure that the people are satisfied with the location and the facilities that are available,” she said.
Meanwhile, Principal – Financial and Real Estate Advisory of KPMG Sri Lanka, Shiluka Goonewardene said that a lot of companies and commercial developers were already looking for alternate spaces for the establishment of their factories and warehouses.
“Although there will not be an immediate effect on housing, moving forward, the demand and thereby the value afforded will be less for houses and apartments in areas known to be flooded, which are outlined as being in the suburbs of Colombo,” he added, noting that already land prices in such places were substantially low.
The Government has also invited foreigners to invest in large scale development projects including infrastructure and construction.
Prime Minister Ranil Wickremesinghe had recently stated that the Government was working on the Megapolis plan to make the city affordable and livable for the people.
Head of the Department of Estate Management and Valuation of the Faculty of Management Studies and Commerce of the University of Sri Jayewardenepura, Prof. R.G. Ariyawansa has called for the country’s real estate market to be organized in a formal manner in view of recent tragic events.
He stated that due to the informal nature of the real estate market, there would be more or less a short term impact of value on the said market as people would soon forget the tragedy and once again take the risk and invest money on land with the prospect of reselling when a risk arises.