Colombo Property Market Monitor 3Q22
The Real Estate Quarterly Report of Colombo City
- Pramuk Amarakoon
Sri Lanka’s economic activity remained largely constrained in 3Q22 due to the continued economic headwinds. However, the Central Bank of Sri Lanka's persistently tight monetary stance slowed the rate of inflation growth, portending a disinflation in the coming months. Additionally, the increased export performance, marginally recovered foreign remittances, and tourist earnings slightly eased the pressure on the economy's external sector.
With anticipated new supply, the Grade A office market showed stability during the quarter. Even though the residential and retail markets experienced a distressing quarter primarily due to tight monetary and fiscal policy regulations, retail market stakeholders are still upbeat because of the anticipated rise in tourist traffic. Despite the continuous surge in rentals, the industrial market saw significant commitments from occupiers and developers.
- Office market rentals stabilised following a period of volatility
- Residential market sentiment turned grim
- Elevated challenges hampered the retail market activity
- Industrial market witnessed notable transactions