Boom in property development

Harshini PERERA

The local property development industry has had a significant growth in the latter part of 2010 compared to early 2010.

“As a property developer we believe that growth in commercial and residential sectors is significant and will continue in coming months and years,” Overseas Realty Chief Operating Officer Remaz Ghouse told Daily News Business.

Significant growth in property development

Overseas Realty PLC has focused on looking at prospective projects for both commercial and residential purposes.

“The commercial and residential projects have seen an increase not only in terms of occupancy but also in sale prices and rental. We will be looking at viable and visible areas of new development in the country and currently no significant area of development has been identified either for commercial or residential purpose,” he said.

Overseas Realty PLC hopes to diverse more shares to the public.

“Our main shareholder is willing to sell part of the shares which will be soon available to the public. The company expects to invest funds raised from the share issue for its future projects,” Ghouse said.

The main challenge luxury apartments and commercial purposed building developers faced earlier was to get fast clearance from certain Ministries for construction.

The Government together with these Ministries has speeded up the clearance process.

The situation will be positive and encouraging for developers. “We need to upgrade facilities and services of the World Trade Centre.”

“The commercial complex of the residential Havelock City project will start in middle next year. The Clubhouse with landscaped terraced rooftop is scheduled to start construction in early 2011,” he said.

The construction of Havelock City luxury apartment phase two will start in January 2011 since the market is improving for luxury apartments.

“Property development and land prices will have a good year ahead and it will reach peak by mid 2012. ETI Homes and Builders will explore the market in Jaffna in May next year. We will build houses on lands in Jaffna,” ETI Homes and Builders General Manager Ranjan Perera told Daily News Business.

ETI Homes and Builders recently signed an agreement with Havicus Sri Lanka, a Belgium company to build luxury houses in the coast line.

Luxury houses will be constructed by ETI Homes and Builders in Matara, Kalpitiya and Trincomalee for tourists.

At the initial stage 35 houses will be constructed while there is a plan to set up 150 houses at the completion of the project.

The construction value of a house will be Rs 50 million. ETI Property Development had a growth of 10 to 15 percent for this year and expects a 30 percent growth with the new expansion to the Jaffna district.