Turnaround in real estate

by L. S. Ananda WEDAARACHCHI

The Real Estate Development and Housing Construction sector which had taken a beating earlier this year has been able to register a marked improvement according to business circles. At present, business is brisk with the buying sector showing a keen interest and the economy is showing signs of stability with Sri Lanka being termed the best share market in the world. The eradication of terrorism and the US $ 2 billion foreign exchange reserve to the current turnaround in real estate sector.

The decline in the demand for land and houses with bank interest rates going down affected business severely during the early part of this year. Now the land and housing market had begun to revive, said Edirisingha Trust Investments Ltd ETI-CEO Mahendra de Silva.

The downfall of some leading financial houses also severely affected the credibility of the financial and investment sector, he pointed out.Merchant Bank Sri Lanka MBSL, CEO Gamini Karunatileka said that a significant change can be observed in currency circulation at present, compared to the first quarter of the current year, which augurs well for business.

Imports and exports are now improving to some extent. Some real estate and condominium developers have recommenced business activities, he added.