The Research Intelligence Unit (RIUNIT) recently reported impressive growth in apartment prices across Colombo and its suburbs, highlighting the city’s real estate market as a resilient and attractive investment option.
According to the latest data, average apartment prices in Colombo City have risen by 15.66% year-on-year, with an 11.91% increase observed year-to-date (in USD terms). This reflects consistent price appreciation despite economic volatility.
The most notable growth occurred in Tier 3 apartments, especially in Colombo 13, where prices surged by 58% from $71 to $112 per square foot between October 2023 and October 2024. Tier 1 apartments in Colombo 3 saw a more moderate increase of 3%, indicating a stable market.
Although land prices in Colombo dropped early in 2023, apartment values have continued to rise, demonstrating the sector’s resilience. Additionally, land prices have begun to recover since late 2023, contributing to a broader market rebound.
The suburban market also showed strong growth, with Ethul Kotte leading Tier 2 apartments, which saw a 29% year-on-year increase. Ratmalana stood out in the Tier 3 segment as well, underscoring the growing demand for affordable, well-connected housing in suburban areas.
This upward trend suggests that both global and local investors are increasingly recognizing the potential of Colombo’s real estate market for long-term returns.
The steady rise in apartment prices reflects strong demand and investor confidence in the city’s real estate sector, positioning it as a key asset for both capital appreciation and rental income.
RIUNIT CEO Roshan Madawala emphasized the importance of accurate, timely market intelligence in real estate, as the company continues to expand across Asia and beyond, marking 21 years of leadership in market research and consultancy.
This growth trajectory reflects shifting investor sentiment as global and local buyers recognise Colombo’s real estate market for its medium- to long-term gains.
The continuous rise in apartment prices not only highlights strong demand but also demonstrates confidence in Colombo as a thriving hub for residential and investment opportunities.
Both the investors and homeowners are likely to see Colombo apartments as a cornerstone of portfolio diversification, combining stable yields and potential capital gains.
RIUNIT CEO Roshan Madawala said: “Whilst monitoring real estate market movement is not an exact science, we at RIUNIT make maximum effort to triangulate our market intelligence from multiple sources. In this regard, we provide timely and critically important information to our clients.”
In early 2024, RIUNIT marked its 21st anniversary, celebrating over two decades of excellence in market research and consultancy. The company also announced its continued expansion across Asia and beyond, solidifying its position as a leading market research firm with deep expertise in real estate.
