The sale of housing units and condominiums in apartment complexes and mixed development projects has fallen by 91% in the first quarter of this year compared to last year, a report by the Central Bank of Sri Lanka (CBSL) revealed.
This is a 40% drop compared to the last quarter of 2022.
According to the reports, 50% of the condominium trades that took place in the first quarter of this year were houses and businesses worth between Rs.25 million and 50 million, while only 7% of houses and properties were purchased with a price of more than Rs.75 million.
It stood at 16% in the last quarter of 2022.
The decline in the purchase of apartments and business premises is mainly due to the increase in property prices. The prices in the Colombo District have increased by 24% compared to last year and by 10% compared to the last quarter.
Almost 50% of the properties purchased are for immediate occupation and about 28% are for future occupation.
According to the CBSL report, the purchase of these properties as investments has decreased by about 8% compared to last year.
Meanwhile, sources said that this situation will worsen due to Sri Lankans leaving the country in large numbers and due to excessive bank loan interest rates.
They also warned that real estate companies may go bankrupt since many companies have taken bank loans that they cannot afford to pay back.
They pointed out that Blue Mountain Company, which was one of the leading real estate companies in Sri Lanka, is an example of bankruptcy due to excessive borrowing.
