Proving Its Mettle
Property Report|June - July 2021
Silver linings have been hard to find for debt-distressed Sri Lanka recently, but the resilience of its property sector provides at least some grounds for optimism
Al Gerard De La Cruz
Proving Its Mettle

There were grim economic tidings on several fronts for Sri Lanka in 2020. In common with nations around the world, the island country was slammed by the pandemic, which all but wiped out its all-important tourism sector.

Only a year after it catalogued Sri Lanka as an upper-middle-income country, meanwhile, the World Bank downgraded it to lower-middle-income status in July 2020. By year’s end, the heavily indebted insular economy contracted by 3.6%, its foreign reserves exhausted by depressed foreign remittances, non-existent tourism, and underperforming exports.

But don’t cry for Sri Lanka just yet. The teardrop-shaped island may yet find consolation in real estate.

Ignoring the closure of the land registry and transaction delays during two lockdowns, the buy-to-live residential real estate market has performed solidly for a nation with a long history of unrest, according to Roshan Madawela, founding director and chief executive officer of the consultancy Research Intelligence Unit (RIU).

“It’s been a tough two years since the bombings,” Madawela says, referring to the devastating Easter Sunday attack in 2019, “but sales continue to happen, and they have been increasing despite Covid-19.”

Tier-three or semi-luxury apartment projects were absorbed by up to 60% last year, compared to 70% the previous year. “I don’t think the word ‘recovery’ is appropriate. The market has proven to be resilient, and ‘resilient’ will become ‘resurgent’ as we move forward.”

Esta historia es de la edición June - July 2021 de Property Report.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

Esta historia es de la edición June - July 2021 de Property Report.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

MÁS HISTORIAS DE PROPERTY REPORTVer todo
Singapore Starts To Swings
Property Report

Singapore Starts To Swings

Generous stimulus has saved the Lion City’s economy from disaster, and a percolating post-pandemic boom looks set to send the residential sector into overdrive

time-read
8 minutos  |
August - September 2021
Natural Highs
Property Report

Natural Highs

With people seeking safe ways of re-engaging with the outside world, the pandemic has steered investment in key ski markets back on-piste

time-read
5 minutos  |
August - September 2021
It's In Hua Hin
Property Report

It's In Hua Hin

A long-time favorite of Thai royalty and weekenders travelling from Bangkok, the famous beach town is adding some alluring new strings to its bow

time-read
3 minutos  |
August - September 2021
Blues In The Blood
Property Report

Blues In The Blood

As China’s cities explode, its built heritage is often neglected. Hangzhou-based Bluetown Architects aims to redress that balance through its striking but functional work

time-read
6 minutos  |
August - September 2021
Little Joy Soldiers
Property Report

Little Joy Soldiers

Real estate sales offices are reopening in Yangon, but banking problems, low confidence and oversupply mean a bleak outlook as the army seeks to entrench rule

time-read
4 minutos  |
August - September 2021
Youth Movement
Property Report

Youth Movement

Young members of a storied family shift property development in Cebu forward with a smart, green commercial tower, rising tall above an heirloom estate

time-read
7 minutos  |
August - September 2021
Gift From Above
Property Report

Gift From Above

Source Global is tapping into a renewable source— the sky—to supply drinking water to residential communities and commercial properties in Asia

time-read
6 minutos  |
August - September 2021
Proptech Is Enhancing Efficiency And Human Experience
Property Report

Proptech Is Enhancing Efficiency And Human Experience

The pandemic has forced the real estate industry into a more meaningful embrace with technology after years of flirting with innovation

time-read
8 minutos  |
August - September 2021
Legacy Of Handy, Individualistic Inventions
Property Report

Legacy Of Handy, Individualistic Inventions

The global crisis has caused unprecedented pain, but its extraordinary nature has seen it spawn a legacy of handy, individualistic inventions

time-read
1 min  |
August - September 2021
Wave Of Mutilation
Property Report

Wave Of Mutilation

Lockdown disruption, evolving working conditions and an exodus by offshore gaming operators have sent the vital office space sector in the Philippines into freefall

time-read
7 minutos  |
August - September 2021