A new real estate investment hub outside the commercial capital is advancing in Sri Lanka. Located in the heart of the North Western Province, Kurunegala is rapidly gaining momentum with the latest technologies, changing tenant preferences and behaviours, and enhanced facilities. This is further strengthened by the completion of the second phase of the Central Expressway, stretching from Mirigama to Kurunegala, adding to the promise of offering greater accessibility.
Expressways are one of the key infrastructure developments for real estate investors to consider. This is especially the case in Sri Lanka – apart from accessibility, the guaranteed continuation of infrastructure and technological development surrounding expressways is an attractive benefit for the urban population as well as forward-thinking industry stakeholders.
With people valuing time and money now more than ever, real estate investment is becoming a more lucrative option over the traditional methods such as savings. Real estate investment offers significantly higher returns and more control over assets. Without doubt, investing in property in close proximity to the Central Expressway, with access to entry and exit points, is an investment for life.
Naturally, properties around expressways swiftly skyrocket in popularity and therefore price, so now is the time take the first step of investing in real estate in Kurunegala.
Recognizing this potential for investment in Kurunegala, CBH Lands has capitalized on the increase in demand and expansion within the province, paving the way for potential investors to purchase plots of land through the developments undertaken by CBH Lands. With a strong belief that Kurunegala is the next investment hub in Sri Lanka, Yatila Wijemanne, Chairman of CBH Lands, expounded on the return on real estate in comparison to other investment opportunities.
Highlighting the benefits of the current investment landscape in Sri Lanka, Yatila Wijemanne explained, “In this prevailing low interest rate environment, funds held in banks provide negative returns, as they offer only 5% per annum, while the actual inflation is above 11%. Thus, one receives a negative return of about 7% minimum per annum by holding funds in the bank. Therefore, it is very important that you invest cleverly, and real estate, if selected carefully, offers the best returns. The key is to identify where one should invest in real estate, and choose an opportunity that will provide the highest amount of return as a percentage. Furthermore, the climate is conducive for real estate investment because home and land loans offer low-interest rates in the short and long run.”
Investment witnessed a sudden shift in the eyes of the general public with the onset of the COVID-19 pandemic. Influenced by the reduction in interest rates and lowered taxes, farsighted investors swiftly progressed towards real estate. While a natural reduction in investments occurred due to the pandemic, society has now eased towards the new normal with investment once again picking up, changing the perception of investment.