Time ideal to invest on properties

Property developers and contractors said this is the best time to invest on properties as the price of land, construction materials and labour cost is skyrocketing and that there will be a good return on investments.

General Manager, Sanken Lanka Ltd., Ranjith Gunatileke said it is a misconception that the price of properties is tumbling and that it is not worthwhile to invest due to the prevailing situation in the country.

"Land values and construction cost are increasing rapidly and those who now invest on houses will gain the maximum return within a few years", he said.

General Manager, Nawaloka Construction, Kalana Alwis said property developers are confident that the price of an apartment will double within three to four years due to the rise in the construction cost.

The construction sector has been facing a major drawback due to the construction boom in the Middle East, India and China. The shortage of construction materials and the depreciation of the rupee have caused construction cost to rise 60 per cent during the past few years.

A severe shortage of skilled workers in the country has an adverse impact on the construction industry.

The number of those migrating has increased due to the construction boom. Workers prefer to go overseas since they are paid higher salaries.

The construction cost per square foot in Sri Lanka is high compared to India, China and Dubai.

The price of cement, iron, steel, sand, timber and labour has doubled in the recent past.

Director HR Residencies, Ananda Jayasekera said though land prices were stagnant it has not dropped. Today it is a buyers' market.

Investors are reluctant to buy apartments since they will not be able to recover the cost.

Investor confidence has dropped due to the security situation in the country, he said.

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