Location notes for real estate in Sri Lanka
This guide gives a simple overview of real estate opportunities in Sri Lanka in the locations in which we operate.
The South West
The island’s Southern Western Coast has traditionally been the most popular destination for tourists visiting Sri Lanka.
Originally a function of the weather being best in the South during European winters and more recently driven by the best access (as below) it continues to be the favoured coastal stretch for those wanting boutique hotels, villas, beachside wellness or surfing retreats.
The transformative Southern Expressway opened from Colombo to Galle in 2015 and cut drive times between the two by about two thirds. What was a tiring 5 hour slog became a nifty one and a half hours.
That better access triggered a boom in buyers - local and foreign - putting money into real estate in and close to Galle. Prices for houses in the Fort itself jumped by multiples in a few years, as did those on beachland within reasonable reach of the highway.
As prices have risen on beachland property, and as the number of buyers has continued to climb, many investors are now looking inland on this stretch for best value. Hilltop (or hillside) property or land with views out across paddy fields are increasingly sought after.
The ‘Deep South’
Much as it drove a burst of investment into property close to Galle, the gradual extension of the Southern Highway has opened up stretches of the South Coast further East.
The Highway now runs all the way to Hambantota, making drive times from Colombo to the likes of Matara, Dickwella and Tangalle easily managed.
Beach and inland prices in these locations continue to lag the absolute premium spots (typically just East of Galle) but prices are rising and buyers looking for best value opportunities are setting sights on the likes of Mawella and Kaduwela.
Hotel operators are in lock step with real estate investors and there’s been a wave of new openings further down the coast in the last three years.
Previously uncelebrated spots like Ahangama have transformed from fishing villages with the occasional surfer to mainstays of the tourist circuit with a buzzing hospitality scene.
Further along the coast the likes of Hiriketiya have gone from zero to Instagrammer’s hero in just a few years. In terms of beachland, we expect to see most rapid price appreciation in these ‘Deep South’ locations in the next few years.
Hill Country
Sri Lankan Hill Country - put very simply the central core of the country - offers some spectacularly beautiful property but is lesser known really for the time it takes to reach.
Driving from Colombo to Kandy (the principal city of the Central Province) has always been fairly miserable - a 3-4 crawl over not much more than 100km.
That experience is improving with the (part) opening of the Central Expressway which now runs from Mirigama (about halfway up that old Kandy Road) to Kurunegala - knocking nearly an hour off the journey. The planned first section, from Colombo to Mirigama is gradually approaching completion (exact date tbc!) and will hugely improve access to Kandy and the highlands.
At this time most Hill Country opportunities are in bare land and renovation projects - old planters bungalows.
Developments such as the Victoria Golf & Country Club, with a number of well-finished ‘luxury’ properties, are fairly unique but several new projects are in early- or mid-stage and we’re looking forward to bringing a wider range of completed villa options to market soon.