This is a question that is lurking on the minds of many investors, developers and buyers. Why is everyone talking about this? Are there enough buyers. investors to buy apartments?
Let us study this a little more closely. As of today, we have close to 3000 apartment units in Colombo and a few outside with another 3000 more to come inside the next three years. Even if the number of apartment units increase to seven or eight thousand, here is the interesting thing, a developer once shared a valuable fact with the experts of our company and here is what was told:
“There are at least 01 million Sri Lankans who have no less than 50 million rupees in their bank accounts!”
Of course, it doesn’t mean that the money is necessarily in the bank but what was mainly highlighted was the gap between the demand and supply. According to this developer, there is a huge demand for semi-luxury and super luxury apartments, also known as A grade apartments and that is why we see Colombo inundated with so many buildings.
Are the developers getting it right?
When considering the sizes of the apartments that are being built and that have been built in the recent past, there seems to be an aura of dissatisfaction by many clients who claim that the size of the apartment should be bigger. The older apartments clearly are bigger in size but most of them do not have any facilities at all, but then on the other hand, the newer ones regardless of the size-factor give you an array of facilities from the pool, gym, party area, laundry, supermarket to all kinds games such as table tennis, squash, carrom, pool/billiards, draughts not forgetting a restaurant or a business centre in the same compound.
Reasons for buyers to complain about the size:
a. A possible reason is that Sri Lankans are used to living in big houses, so the whole concept of living in an apartment can give a claustrophobic feeling when considering the size.
b. The number of occupants and the lifestyle could also be a factor as Sri Lankans generally like to have the family in one piece although that is expected to change with newly married couples renting and buying separate apartments. Lifestyle is certainly another valid reason.
c. Storage could also be a possible reason with the experience of living in a big houses, one would have many things to keep and unlike in the apartment-life, you can’t just take all your belongings and squeeze them in a tiny apartment. Perhaps compromising on some of the items is an option.
d. Servant’s room and the servant’s services is another factor that most buyers look at from a very serious perspective. Certain apartments have very small servant rooms, more like servant boxes and in most cases, there isn’t a window for the poor maid to breathe peacefully, sometimes there is no plug point on the wall to even arrange for a fan. Little things that escape the mind of the developers.
The servant washroom is also something that is looked upon in utmost oblivion and requires some revisiting.
Coming back to the main topic of whether there is an over supply, in short, we could probably say. ‘NOT YET’ but you never know when that point would come to light. This is why Sri Lanka needs an independent body that can keep track of apartment sales and bring everybody together in order to study the market more closely and thereby act in a more prudent and efficient manner.
If you require the services of MR. T – The Real Estate Giant, kindly drop an e-mail to info.mistert@gmail.com
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