Colombo’s land value slips on COVID-19

  • Land Value Indicator sees growth decline from 13.6% in 1H of 2019 to 7.1% y-o-y
  • Decline seen across residential, commercial and industrial categories 
  • Semi-annual percentage changes also show recent declining trend 
  • Virus seen as having impact in medium term 
  • RIU report says tech, telcos and healthcare sectors likely to drive demand 
  • Smaller companies may shift to suburbs, seek rent relief and flexibility from landlords      

Land value in the Colombo district has become part of the COVID-19 casualty list, with the annual growth rate declining from 13.6% in the first half of 2019 to 7.1% for the same period in 2020, for residential, commercial and industrial property category value indicators, the latest data released by the Central Bank showed yesterday.  

The Land Valuation Indicator (LVI) measured by the Central Bank showed that there was a growth of 12.8% for residential land in the first half of 2019, and 14.9% for industrial and 13.2% for commercial land when compared to the same period in 2018. However, year-on-year there was only 7.1% growth for residential and commercial LVI, and 7.2% for industrial LVI. The semi-annual percentage change was also slower at 2% in the first quarter of 2020, when compared with 5% in the second half of 2019.

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