BOI projects pushing Colombo land value

Anjana Samarasinghe

LAND VALUE: Proposed BOI projects have resulted in higher land prices in the Colombo area. Director of The Finance Company Kamal Yatawara told Daily News that due to the economic boom in Colombo and the proposed BOI projects have created a high demand for land in the Colombo area. The land prices in this area have gone up due to the higher demand.

Land that was priced at Rs 1.5 million a perch has now increased up to Rs 4 million per perch specially in Colombo seven and four. However prices has gone up three to four times, he said.

Condominium housing projects also resulted in high prices of the land. There are many condominium projects in the Colombo area, he said.

Chairman of Prime Lands Pvt Ltd. B. Premalal said there is a shortage of land in the country and some property developers have created an artificial demand for land. This has paved the way for higher land prices in the country.

In some areas land prices has increased by 100 percent. In the suburbs land prices has increased by 50 percent. In other areas, land prices has increased by 25 per cent, he said. Apart from Colombo, there is a high demand in Gampaha and Kalutara districts for land.

Demand for land in the tsunami affected areas have not declined. Still there is a demand for land in areas like Wadduwa and Kalutara, he said.

Chief Valuer of the Department of Valuation P.W. Senaratne said there is a demand for land in North East areas too. This is mainly in coastal areas. In Trinco land prices commence at a rate of Rs. 80,000 per perch.

Today most of the people are investing on land. Investing on land is much profitable and this too has created a huge demand for land which has resulted in higher prices.

Though the population has increased there is no sufficient land to accommodate the ever-growing population, he added.

Foreign investors are also keen on purchasing land from Sri Lanka, Senaratne said.