Grin and ‘bare’ it? To buy bare land in Sri Lanka or find a finished home

We have had a steady stream of enquiries about bare land opportunities recently. Whereas the majority of the Sri Lankan villa owners we work with want USD pricing, owners of bare land are more likely to agree an LKR-based deal – so, since the devaluation of the rupee, the appeal to buyers with, say, USD to spend, is fairly obvious.  

Recent pricing opportunities aside, the concept of buying bare land and building will always appeal to some. Why settle for someone else’s idea when you can plan out the home that suits you ideally. Couple that with a slightly romantic notion of styling your very own tropical hideout…who wouldn’t fancy a crack at that. 

We entirely applaud that optimism and endeavour. And, indeed, share in the fantasy, on occasion. But thought it worth reminding on the values of buying a finished home. Here are a few thoughts.

Knowing what you’re getting

An entirely obvious point, but in buying a completed home you have total understanding of the asset you’ll end up with. We’ve shown a good number of bare land plots to prospective buyers and in many cases the end goal is hard to visualise. If inland, there’s a good chance the land will be wild to some extent. Without considerable concept work it’s a challenge, on larger plots, to see how clearing work and development will play out. 

Even if you do have a clear vision, realizing it is no easy task. There are a growing number of excellent contractors, developers and project managers in Sri Lanka and the country has a rich history of creative architecture (we’re continuing to build our Directory of those here.) But even if working with great people, if not able to have a very close handle on the project, mission creep is all too common. We’ve seen some fantastic buy and build projects, but an equal number that have slipped way off the intended path. 

Materials 

A more niche observation but, currently, completing a build project is increasingly challenging in terms of sourcing materials. Import restrictions mean that finding, for example, good quality imported fixtures and fittings is close to impossible. We were recently told that the pool tiles we wanted for a partner project would certainly be available but only in “three years”. “Three months?” we hopefully corrected. No, “three years”. Right. 

Trevor Morgan, the CEO of Shakticola, a Galle-based architectural design and construction project management company, recently outlined some of those challenges. 

And while imported items are scarce, local ones are ever more expensive. Commodity materials – timber, cement, sand etc. – have increased sharply in price, doubling in some cases. A build budgeted at USD 200,000 two years ago would struggle to come in under USD 300,000 now. 

People

A lot of our buyers are looking for a property to rent out for part of the year. A fundamental part of that is building a good team of people at the property – housekeepers, gardeners, cooks, cleaners. This is, at best, a time-consuming task; one not without considerable downside risk.

A lot of the finished properties that we sell have been through that process, finding really good people to ensure the house is well maintained and run to a high standard for visiting guests. The value of those teams is hard to quantify but is significant. 

There are, it should be said, really good property management companies now in Sri Lanka that can take on for you the work of finding and overseeing staff at your home. 

Income

For those wanting to rent their property for income, the value of established custom can be huge. Many of the homes we’re listing have been successfully rented, with loyal and returning guests, for many years. As the luxury villa market gets ever fuller, to know that all the channels are set up and all you need to do is keep the beds made is a real asset. 

The Unexpected

Frankly, it’s one of the joys of Sri Lankan life that no day is the same and things rarely pan out exactly as you’d imagined they would. But when it comes to significant investment it makes sense to aim for as much certainty as possible. 

Buying a built house, there’s a decent chance that any major issues will have surfaced already. Whether it’s a disagreement with neighbours, or perhaps a restriction on what can or can’t be built, buying into a finished property there’s much less risk of nasty surprises.