A property market boom is coming
Minoli Wickramasinghe, Managing Director of Capital Trust Properties
Capital Trust Properties predicts high returns for real estate compared to other asset classes in the medium to long term. And now is the time to invest
The prophesied property bubble never came. Not long ago, analysts predicted the property market will crash as high-rises sprouted in the city. However, since the covid-19 pandemic struck, the property market’s prospects have never been better. Minoli Wickramasinghe, Managing Director of Capital Trust Properties, says that now is the perfect time to invest in property. A subsidiary of Capital Trust Holdings Limited, Capital Trust Properties has interests in Property Investment, Property Brokering, Property Management Services and Real Estate Advisory. Here, Wickramasinghe takes a deep dive into the Sri Lankan real estate market and investment prospects in a post-Covid environment.
Can you give us an overview of the real estate market under the present economic conditions and the pandemic?
If we look at the condominium market, everyone expected it to fall, but amidst the political instability in the past four years, prices have held steady. With rapid urbanisation, land prices are increasing, and people will opt for the conveniences of vertical living. Most condominium projects have been halted or delayed due to rising construction prices. Therefore, we may not see a glut of apartments but the opposite. The property market is benefitting from falling interest rates. People can now take out a mortgage on a property at a low rate of interest and acquire an asset that will appreciate over time. The only sector negatively impacted by the pandemic is commercial property, but it is temporary. The A-grade inventory is small and hence, can be easily absorbed even from a slight upturn in the economy …