Colombo Property Market Monitor 3Q21
The Real Estate Quarterly Report of Colombo City
- Shazana Zarook
Despite continuous mobility restrictions implemented during 3Q21, economic activities sustained pace with the ongoing vaccination drive and businesses continuing to adopt to the new normal. In 3Q21, Grade A office market witnessed heightened leasing activity, consequently reflecting in a decreased vacancy rate. Despite delays in anticipated completions, Grade A office rentals eased q-o-q. Residential market continued to soar amid notable price hikes, indicating signs of short-supply in the upcoming quarters. Retail market buoyed with the concessions offered by landlords. However, signals of recovery were observed across the market with the increased tourist arrivals and upcoming festive seasons. Colombo hotel market continued to face challenges with the low occupancy levels compared to the same period last year.
- Economic activities sustained pace amid the lockdown with industrial production clocking a 3% growth y-o-y in August.
- Increased occupier activity in the Grade A office market
- Notable price hikes in the residential market caused by the challenges faced by the developers
- Positive sentiment across the retail market