Land Prices Bounce Back to Growth in the Latest Land Price Index by LankaPropertyWeb

Land prices bounce back to growth in the latest Land Price Index by LankaPropertyWeb. The overall land prices in the Western Province increased by 7.8% compared to the previous year, according to the 2024 Western Province Land Price Index (LPI), developed by LankaPropertyWeb (LPW). The Land Price Index (LPI), updated annually, monitors the trends in asking price values of lands for sale across all three districts of the Western Province - Gampaha, Kalutara, and Colombo. Based on the Index findings, land prices in Gampaha District surged by 13% from the preceding year, while Kalutara witnessed an 8% rise. In the Colombo district (excluding Colombo 1-15), a growth of 8% was observed, with Colombo 1-15 explicitly marking a 2.3% increase. 

The increase in the land prices in all three districts of the Western Province reverses last year’s decline in the Gampaha and Kalutara districts. In contrast, the Colombo district (including Colombo city) has shown a consecutive price increase. 

Gampaha District 

In Gampaha District, land prices have experienced an average increase of 13% in 2024 compared to the previous year. Variations in land prices have been observed across various cities. Leading the surge in prices are Negombo, Ragama, and Kadawatha, which have emerged as frontrunners with substantial escalations. Negombo, in particular, boasts an impressive 34% increase, underscoring its growing prominence as a desirable living and investment destination. Similarly, Ragama showcased a commendable 27% increase, attracting savvy real estate investors with its promising prospects, thus contributing to the overall growth and appeal of the Gampaha region. 

Kalutara District 

In Kalutara, land prices have experienced an average increase of 8% in 2024. Land price changes have been observed in critical areas, showcasing the region's vibrant real estate landscape. Ingiriya stands out with an exceptional 27% surge, accompanied by a growth of 500% from Q1 2019 to Q1 2024, underscoring its potential as a promising investment

destination and a testament to the region's growth trajectory. Similarly, Panadura reflects buoyant market sentiment with a noteworthy 27% rise, reaffirming its status as a thriving locale and further bolstering the attractiveness of the Kalutara district to investors and developers alike. 

Colombo District 

Colombo 1-15 

In the most recent period analyzed (2023-2024), land prices rose by 2.30%, highlighting sustained growth. Having demonstrated continuous price growth from 2018 to 2021, Colombo's 1-15 prices experienced a -2.33% dip in 2022; however, they rebounded in the following two years. These fluctuations reflect the dynamic nature of Colombo 1-15's real estate market, shaped by economic, social, and regulatory factors while maintaining appeal for long-term investors. 

Other Areas of Colombo District 

In Colombo District (apart from Colombo 1-15), land prices have experienced an average 8% increase in 2024. Specific areas have witnessed significant movements in land prices, reflecting the varied nature of the district's real estate market. Rajagiriya emerges as a nucleus of demand and development activities, boasting a 25% increase, indicative of its growing prominence as a prime investment destination within the Colombo district. Additionally, Dehiwala has contributed to the district's growth trajectory with a respectable 19% increase, signaling sustained investor interest and further solidifying its position as a critical player in Colombo's evolving real estate landscape. 

Commenting on the release of the 2024 LPI, Mr. Daham Gunaratna, the Managing Director of LankaPropertyWeb, said, “Over the past 12 months, we’ve seen an increase in demand for land and heightened market activity. This trend has been propelled by banks offering low loan rates starting from as low as 12% and demand for house construction picking up, among other factors. With the economic situation improving and interest rates decreasing, we have seen a resurgence in land interest in the past year. An example is the number of new land sales projects coming into the market during this period.” 

The historical land price data from 2019 released by LankaPropertyWeb, along with the Land Price Index, shows that all cities in the Western Province showed an average price increase of

57.7% for the last 5 years, with Ingiriya showing a remarkable 500% increase during this period. 

About the LPW LPI 

This index captures annual changes in land prices in the most populated province in Sri Lanka: Western Province. Publicly available asking prices for bare lands published in LPW and other online media were used in the analysis. The Land Price Index considers the base prices in 2018 equal to 100 when determining the price fluctuation in the years after. The Q1 2024 update reflects a comparison with the average of Q1 2023. Prices within the area will vary, such as land close to main roads or junctions being expensive and above average. 

To obtain more accurate prices for your land or neighborhood, view ‘land for sale’ listings for that area and check with an estate agent or a registered valuer. The complete list of land prices for Q1 2024 can be viewed from: www.lankapropertyweb.com/land_prices.php 

A Peek at the LankaPropertyWeb's Suite of Tools and Services 

Along with the Land Price Index, LankaPropertyWeb provides tools and services to assist real estate enthusiasts and investors make informed decisions. These offerings include property listings, valuation reports, price meters, house price indexes, market insight reports, and other resources. 

Enhance Your Real Estate Search with LankaPropertyWeb 

As the premier online real estate marketplace in Sri Lanka, LankaPropertyWeb is dedicated to delivering top-notch service to its users. The Land Price Index is just one of the numerous tools and resources available through LankaPropertyWeb to support informed decision-making for buyers, sellers, and investors in the real estate market in Sri Lanka. For more details and services, visit www.LankaPropertyWeb.com.