Construction of expressways in Sri Lanka has led to sharp increases in nearby property prices, indicating potential investment opportunities in future projects, PricewaterhouseCoopers (PwC) Sri Lanka unit said.
“Property developers no doubt can take advantage of the various new expressways in the pipeline by planning ahead and investing in areas which are in close proximity to these expressways and exit points, which no doubt will see an increase to the price point in the coming years,” it said.
The assessment was contained in a study done by the PwC Sri Lanka, the local unit of PricewaterhouseCoopers, one of the big four professional advisory, tax, and regulatory services providers.
It covered the nexus between property and road development in Sri Lanka and the increasing need to invest along the expressway network.
“With the construction of expressways in the county, the land prices located specially near the exit points of the Southern and Outer Circular Expressways have skyrocketed during the period between 2012-15,” the statement said.
“The easy access from Colombo to the Southern Province also resulted in an increase in apartment complexes, office buildings specially in and around the Galle district, which up until recently was unaccustomed to such forms of developments which also includes high-rise buildings.”
With construction work for Colombo – Kandy Expressway kicking off in 2015, there has also been an increase in the land prices in the adjacent areas where the expressway is currently being constructed, PwC Sri Lanka said.
“For example, we noted a significant increase in the land prices around Gampaha, Mirigama and Veyangoda during the 2016-19 period.”
Land prices in Gampaha rose by 37 percent and in Veyangoda by 34 percent.
“With the construction of the expressways, many property development companies have launched both land development and apartment projects along the expressways, capitalizing the ease of commuting to and from Colombo,” the company said.
It said similar opportunities could emerge with the building of the Colombo-Kandy expressway, where land prices in nearby cities could go up.