September 02, Colombo (LNW): The Land Valuation Indicator (LVI) for Colombo District recorded a 6.9 per cent year-on-year increase in the first half of 2024, reflecting growth across all land categories—Residential, Commercial, and Industrial.
Residential and Commercial LVIs both surged by 8.5 per cent, while the Industrial LVI experienced a more moderate rise of 3.7 per cent.
Compared to the latter half of 2023, the first half of 2024 showed stronger growth across the board, with the Industrial LVI trailing behind the other sectors.
This overall rise in land valuation indicates a robust demand for property in Colombo, driven by various economic factors influencing the real estate market.
The LVI, which evolved from the original Land Price Index (LPI), has been tracking land values in Colombo District since 1998. Initially, it covered five DS divisions on an annual basis but expanded in 2009 to include semi-annual updates.
In 2017, the index broadened its scope to encompass all 13 DS divisions within the district, establishing the first half of 2017 as its base period. In 2020, the LPI was rebranded as the LVI, continuing its semi-annual publication.
The LVI takes into account the diverse nature of land use in Colombo, with distinct sub-indicators for Residential, Commercial, and Industrial properties.
These sub-indicators are calculated based on the average per perch bare land price within each DS division, and the overall LVI is derived as a simple average of these sub-indicators.
This latest increase in the LVI underscores the continued demand for land across different sectors in Colombo, highlighting the district’s ongoing appeal for both residential and commercial development.
The industrial sector, whilst growing at a slower pace, still reflects a steady interest in land for manufacturing and other industrial activities.
