ikman Blog - Buying and Selling Guide

Colombo’s Land Values Surge: Key Insights for 2025

Colombo’s real estate market is shifting. Land values keep rising, although the pace has eased. According to the Central Bank of Sri Lanka, the Land Valuation Indicator (LVI) for Colombo hit 236.8 in 2H-2024, a 7.7% year-on-year gain. That headline matters. However, the details matter even more.

Key Takeaways

LVI at a Glance (2H-2024)

These figures show steady momentum. Even so, higher interest rates and shifting policies temper the pace.

Why Prices Are Rising

1) Economic recovery and confidence
Since the 2022 crisis, stability has improved. Consequently, both local and foreign buyers are re-engaging.

2) Demand for homes and offices
Urbanisation continues. As a result, modern residential and commercial stock remains in demand.

3) Scarcity of prime land
Central pockets are built up. Therefore, limited supply pushes prices higher.

4) Hedge against inflation
Many investors prefer  property in uncertain times. Consequently, land remains a long-term store of value.

What This Means for You

For Property Buyers

For Investors

For Sellers

Outlook for 2025 and Beyond

Check out our other blogs for more insights!

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