The Price Index for new condominiums in the Colombo District reached 284.4 in the first quarter of 2026, reflecting a substantial year-on-year increase of 18.5%. However, the Condominium Property Sales Volume Index saw a decline of 15.2% compared to the previous year, signaling a reduction in market activity in Colombo and other prominent urban areas.
Colombo District remains the central market area, responsible for 65% of all sales transactions during this quarter. A detailed analysis of sales by category indicates that individual condominium projects in Colombo accounted for 59% of total transactions, while projects in the Gampaha and Kalutara districts made up 32%.
Significant changes in market dynamics concerning price ranges were observed in the first quarter of 2026. Transactions within the Rs. 50 million to Rs. 75 million category and those exceeding Rs. 75 million saw a slight uptick, whereas sales in the Rs. 25 million to Rs. 50 million range experienced a decline.
Specifically, luxury units priced over Rs. 75 million increased their market share to 29%, a notable rise from just 11% a year earlier. Additionally, the proportion of units priced between Rs. 50 million and Rs. 75 million grew to 23%, up from 22% the previous year. Conversely, the share of mid-range units priced between Rs. 25 million and Rs. 50 million decreased to 29%, down from 49% the year before. The lowest price bracket, units priced from Rs. 0 to Rs. 25 million, remained relatively stable, representing 19% of transactions compared to 18% last year.
Inventory for completed projects is nearly depleted, with data indicating that 98% of units in finished single condominium projects have been sold, leaving only 2% available. In ongoing developments, 51% of units have already been reserved.
Buying trends show that resident Sri Lankans constitute the main buyer demographic. Most of these buyers acquired units for immediate occupancy, with 80% of transactions financed by the buyers’ own resources rather than bank loans. For developers, pre-sale deposits continue to serve as the primary funding source, comprising 48% of the total development capital.
The overall real estate sector has also experienced rising costs. By March 2026, the Asking Price Index for land in the Colombo District surged by 31.9% year-on-year. During the same period, asking prices for houses and condominiums increased by 6.4% and 11.0%, respectively.
Source: Financial Chronicle Biz English | Sri Lanka Business News.
