Colombo Land Prices Up 14.4% in H1 2025

Land prices in Sri Lanka’s Colombo District continued to climb in the first half of 2025. The Central Bank’s Land Valuation Index shows residential land up 14.4 percent year on year, commercial land up 11.5 percent, and industrial land up 8.4 percent. Overall, the index rose 11.4 percent from a year earlier, including an 8.3 percent gain compared with the second half of 2024. The index has advanced from 205.2 in late 2022 to 256.4 by June 2025, underscoring the resilience of real assets during the stabilization phase.

Real assets regain momentum

As financial conditions normalize and confidence improves, investors are rotating back into property. Land in Colombo has historically acted as a hedge during periods of inflation and currency volatility, and the latest readings suggest values are catching up with the broader recovery.

Market signals are turning positive

Corporate results and market activity point to better operating conditions. Brokerage research indicates strong double-digit earnings growth for listed companies in the June quarter, supported by lower finance costs and improved credit quality in the banking sector. In a landmark capital markets moment, Commercial Bank of Ceylon crossed 1 billion US dollars in market capitalization in August 2025 and also became the first private sector bank to surpass 3 trillion rupees in assets. These milestones reflect improving investor confidence and deeper market participation.

Policy credibility has strengthened as inflation stabilized, the currency became more predictable, and the rate environment eased from prior peaks. Together, these trends support long-term planning for households, developers, and institutional investors.

Spotlight on Colombo 05

GHR is channeling this momentum into two carefully positioned residential launches in Colombo 05, one of the city’s most sought-after urban neighborhoods.

Edmonton Bliss Residencies, Colombo 05

A boutique tower of 40 modern apartments across 11 floors, offering spacious three-bedroom layouts with maid’s quarters. Sizes range from 1,102 to 1,509 square feet. Residents have access to an indoor pool, fitness center, visitor lounge, secure parking, and 24-hour security. The location places top schools, leading hospitals, and daily conveniences within easy reach.

Park Road Residencies, Colombo 05

Set along Gunathilake Avenue with direct Park Road access, this contemporary development offers refined three and four-bedroom apartments designed for light, space, and quiet urban living. Amenities include a rooftop pool, gym, visitor lobby and reception, passenger lifts, secure indoor parking, backup power for common areas, and more.

Outlook

With the land index up 11.4 percent year on year and residential plots leading at 14.4 percent, Colombo remains compelling for end users and investors. Looking ahead, relatively low borrowing costs, tightening prime supply, and improving household confidence point to continued upward pressure on prices through 2025. That makes this a strong entry window for buyers seeking both lifestyle and long-term appreciation. Only a few units remain across our Colombo 05 launches at Edmonton Bliss Residencies and Park Road Residencies, so securing a preferred layout now can lock in value before the next leg higher. GHR will continue to develop future-ready homes in locations where livability and investment logic intersect.

Sources: Central Bank of Sri Lanka (CBSL) | Daily FT | The Morning Business | The Morning Business | Economy Next