The Sri Lankan economy rebounds towards a pre-pandemic normalcy in 1Q21, as the country’s economic activity strengthens, and vaccination programs gather momentum domestically. Tourists trickled in with relaxed travel restrictions and the GoSL expected a brisk in the overall economy.
In the real estate sector, demand for Grade B office strengthened, while Grade A office space demand remained slow with stagnated rents. Residential sales noticed a significant growth with a growing interest for holiday homes/ secondary homes among local buyers. Prevailing low mortgage rates, continued to boost demand in the residential market. Following a significant recovery in retail sales, leasing activity picked up in the organized retail segment. Hotels in Colombo continued to struggle whilst the resort regions outside Colombo benefits from travel bio-bubble arrangements.
Leasing demand for office spaces picked up slowly, however Grade A rents remain stagnated
Increased demand for residential apartments outside of Colombo
Noticeable growth in the high street buildings as retail sales rebounds
Resorts outside the Colombo benefited from travel bubble arrangements while south west coast survived from domestic leisure demand