First of all you won’t be surprised to know that the general long-term trend is…up. The best time to buy, as they say, was 10 years ago (and the second best is now!).

Our historic data on land for sale in Hiriketiya is more anecdotal than scientific but fair to say prices have increased, on average, between two to three times in the last 10 years. 

In the very recent past things feel like they’ve stabilised a little; in some cases we actually saw slightly higher ask (and transaction) pricing - levels around LKR 2m per perch for inland plots close to the beach - than we’re seeing right now. That’s partly a function of the amazing tourist numbers that Hiriketiya generates in the season and the buzz around real estate that comes in tow. But it’s also because there’s a pretty wide stretch of land between the beach and the coast road at Hiriketiya so there remains a reasonable, for now, supply of new plots coming available that retain a ‘beachy’ feel (i.e. inside the coast and within a walk of the beach). 

Anyway - what are the actual prices? In terms of beachfront, we’d actually have to speculate as there’s essentially nothing on the market. We’d estimate pricing around 5m per perch (that’s around $650,000 for a quarter acre) but don’t see any rush of owners looking to sell - such is the rental value of that real estate right now. 

Elevated plots (and there’s not a ton of them) on either side of Hiriketiya Bay have come to market with asking prices at around LKR 2m per perch but these tend to be larger blocks which take time to transact. In dollar terms these large oceanfront plots are asking just over USD 1m per acre.

As you head a little inland there’s more on the market. Within walking distance of the beach we see guide prices of LKR 1.3-1.6m per perch. Meaning at the lower end of that range you could buy a 30 perch plot, sufficient for a nice villa, for USD 130,000. We’re seeing good demand for land for sale at that level and are completing deals currently. 

As above, there’s been a pretty steady flow of new plots coming to market that are still just about within walking distance of the beach (fairly critical from a marketing, AirBnB-type, angle). But things are starting to run thin now and we’d would expect the smaller plots in that range to start hitting and even getting above the 2m per perch level fairly soon.

To follow soon.

To follow soon.