Real Estate - Sri Lanka | Statista Market Forecast

The Real Estate market market in Sri Lanka is expected to reach a value of US$540.20bn by 2024.
The residential segment holds the largest share in the market, with a projected market volume of US$295.30bn in 2024.
This segment is anticipated to grow at an annual rate of 2.55% (CAGR 2024-2029), resulting in a market volume of US$612.60bn by 2029.
In a global context, United States is projected to generate the highest value in the Real Estate market market, with US$132.0tn in 2024.
Amidst a growing tourism industry, Sri Lanka's real estate market is experiencing a surge in demand for beachfront properties.

Definition:

The real estate market refers to the transaction of properties, including residential properties (such as houses and apartments) and commercial properties, such as office buildings and industrial properties. Apart from property sales, this market includes leases and the value of real estate.

Structure:

The real estate market comprises residential and commercial real estate. The residential real estate market covers real estate transactions and leases, and residential real estate leases are divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and real estate renters as well.

Residential real estate (houses and apartments)
Commercial real estate (office buildings, retail spaces, warehouses, industrial properties)

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Real Estate market in Sri Lanka has been experiencing significant growth in recent years. Customer preferences in the market have been shifting towards more modern and luxurious properties. There is a growing demand for high-end apartments and condominiums, especially in urban areas. This trend can be attributed to the increasing urbanization and the rise in the number of middle-class and affluent individuals in the country. Additionally, foreign investors are also showing interest in the Sri Lankan real estate market, further driving the demand for upscale properties. One of the key trends in the market is the development of integrated mixed-use projects. These projects combine residential, commercial, and recreational spaces in a single development, providing residents with convenience and a wide range of amenities. This trend is driven by the desire for a holistic lifestyle and the need for convenience in today's fast-paced world. Such projects are particularly popular among young professionals and families who value convenience and easy access to amenities. Another trend in the market is the increasing focus on sustainable and eco-friendly properties. With growing awareness about environmental issues, there is a demand for properties that are built using sustainable materials and incorporate energy-efficient features. Developers are increasingly incorporating green building practices into their projects to attract environmentally conscious buyers. Local special circumstances in Sri Lanka also contribute to the development of the real estate market. The country's strategic location, beautiful landscapes, and rich cultural heritage make it an attractive destination for both local and foreign investors. The government has implemented various initiatives to attract foreign investment, such as offering tax incentives and simplifying the process of acquiring property. These factors have contributed to the growth of the real estate market in Sri Lanka. Underlying macroeconomic factors, such as a stable economy and low interest rates, have also played a role in the development of the real estate market. Sri Lanka has experienced steady economic growth in recent years, which has increased consumer confidence and purchasing power. Additionally, low interest rates make it more affordable for individuals to invest in real estate, driving demand in the market. In conclusion, the Real Estate market in Sri Lanka is experiencing growth due to shifting customer preferences, the development of integrated mixed-use projects, the focus on sustainability, local special circumstances, and underlying macroeconomic factors. These factors are driving demand for modern and luxurious properties, attracting both local and foreign investors to the market.

Data coverage:

Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

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Real Estate - Sri Lanka

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Value Split

Volume

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