Colombo Property Market Monitor 4Q21
The Real Estate Quarterly Report of Colombo City
- Pramuk Amarakoon
Economic activities across Sri Lanka rebounded during 4Q21. Citizens started actively participating in social and economic activities, defying the setback due to Omicron. Grade A office market in Colombo witnessed a robust absorption driven by varied industry sources while the rentals continued to soften. The nation’s macroeconomic performance and import bans reinforced the already swelling residential market. Despite declining hotel market indicators, Sri Lanka remained an attractive destination for tourists during the quarter with rapid growth in footfall. The retail market shifted towards a positive sentiment due to relaxation in social distancing rules. The industrial vertical too experienced heightened activities supported by the surge in exports, further strengthening the rental growth.
Key Highlights
Despite cascading challenges, economic activities remained resilient
Lowest vacancy rates recorded for 2021 Grade A office market
Positive macro-economic sentiment swelled the residential market
Retail sales rebounded with heightened consumer activity in lieu of festive season
New launches across varied industry verticals
Positive signals across hotel market
