lamudi - property now / issue #3

1 / Lamudi Magazine

PROPERTY NOW / ISSUE #3Featuring: The Real Estate of Wayamba / Rise of Commercial

Properties Architectural Sensations in Colombo / Design

0

Blue OceanGroup of Companies

Price 200 LKR | Jan-March 2016Sri Lanka’s #1 Real Estate Portal

Page 20

MARKETOVERVIEW

2 / Lamudi Magazine

1 / Lamudi Magazine

2 / Lamudi Magazine

Dear reader,

Hope you had a great start to the year 2016. On behalf of Lamudi and our team, I

want to wish you a great year ahead. May it be a splendid year for you, with good

health and prosperity!

With the recent loosening in regulations on foreign investments, the prospects for

Sri Lanka’s real estate market in 2016 are positive. Whereas some planned projects

will be completed this year, even more projects will continue their progress to make

a lasting impact on Colombo’s skyline. All in all, it promises to be an interesting year

for real estate in Sri Lanka.

To keep you up-to-date in the rapidly evolving field of real estate, we continue to

provide you with the latest news, trends and developments in our third issue of the

Property Now magazine.

This edition is packed with articles, expert interviews, the latest market data and

analyses. For instance, an analysis is performed on the recent rise of the suburbs in

Sri Lanka and on the real estate in Wayamba. Moreover, we will have a closer look at

the luxury developments and how Sri Lanka scores compared to the region in this

respect.

Finally, we’ll have some fresh insights on the eternal debate on buying versus leasing

and we will discuss a glimpse of the exciting future of real estate.

I would like to wish you a great time reading our 3rd issue of the Property Now

magazine and - as usual - your feedback is welcome and highly appreciated!

Managing Director Lamudi Sri Lanka

PROPERTY NOW #3

3 / Lamudi Magazine

Vivek Sadananthan Deputy Editor

Alexandra IuchykEditor

About us

Lamudi Sri Lanka is the country’s leading online real estate platform which has been connecting buyers and sellers of residential and com-mercial properties, both locally and internationally, for the past 19 months. Since day one, Lamudi noticed nothing but tremendous interest towards the platform.The sole purpose of the company is to assist

buyers in finding their ideal home, land

or commercial property. Lamudi aims to

provide as much information as possible in

order to empower the customer in their deci-

sion making.

The company works creatively in providing

the best means for connecting the buyer and

seller via the website as well as the mobile

app. The app hosts more than 900,000 prop-

erties advertised among 34 countries in Asia,

the Middle East, Latin America and Africa

allowing property hunters to search for real

estate all over the world.

To date, Lamudi Sri Lanka and its global fam-

ily has reached several milestones. Expand-

ing to 34 branches within a span of two years

is an example of the growth of the company.

With many goals to reach in the near future,

Lamudi focuses on continually providing the

Sri Lankan market with the best service pos-

sible and information about the real estate

sector of the country.

Publisher: Lamudi Sri Lanka

Address: No 9, 4/1 School Lane, 00300

Phone: 011 4 062850

Email: [email protected]

CONTENT

FEATURED DEVELOPER / Page 4

THE REAL ESTATE IN WAYAMBA / Page 6

THE RISE OF SUBURBS / Page 8

COVER PROPERTY / Page 10

WEST COAST LUXURY / Page 16

BUYING VS LEASING / Page 18

MARKET OVERVIEW / Page 20

THE RISE OF THE COMMERCIAL SECTOR/ Page 24

WHAT 2016 HOLDS / Page 28

BEFORE YOU BUY A CONDO UNIT / Page 32

THE NEXT FRONTIER / Page 34

FEATURED PROPERTY / Page 38

INVESTING IN SRI LANKA/ Page 40

LOCAL PEARLS / Page 44

ARCHITECTURAL SENSATIONS IN COLOMBO /

Page 46

MINIMALISM IN MODERN CEYLON / 0

REAL ESTATE, COMPETITIVE ADVANTAGE AND

BUSINESS / Page 52

SUSTAINABILITY IN REAL ESTATE/ Page 54

DESIGN: BACK TO THE ROOTS / Page 56

4 / Lamudi Magazine

The company won recognition and accolades as a

total solution provider in the field of building mod-

ern luxury houses and commercial buildings in Sri

Lanka. Established in 2012, the company has since

reached great heights as a high standard construc-

tor using top standard architectural design under

the observation of qualified Chartered Architects

and Civil Engineers. The company’s concept is to

build a trusted brand name to their valued clients

to be proud of being an owner of a Maheema En-

gineering & Construction Pvt Ltd creation, where

they can live and use for generations. The ambition

of the company’s management is to maintain reli-

ability and reputation for years to follow. “We have

highly skilled and dedicated architects and they

will design your building plan to suit your budget

according to your ideas and requirements.”

Going beyond expectations Maheema Engineering

& Construction Pvt Ltd has successfully completed

several projects. ”We maintain the usage of high

quality, genuine raw materials in our projects. Our

projects are on the right track with more demand

from individual and corporate customers”, Direc-

tor Operations, Jayatissa Pallearachchi Maheema

Engineering & Construction said.

“Our well experienced interior designers will give

you new ideas to fulfill your dream house. The

qualities of the building materials we use are guar-

anteed. Customers have the opportunity to visit

the site and inspect the quality of the raw materi-

als”, he added.

The company’s vision is “to operate as an excellent

construction company in Sri Lanka, offering quality

products and services to customers through

modern management systems for the highest

satisfaction of clients”. Its mission is to “operate

the company as a reputed, quality, profitable, well

managed & continuously improving business orga-

nization, to execute projects, to the full satisfaction

of clients in terms of time, cost and quality.”

MAHEEMA CONSTRUCTIONS

ADVERTORIAL

Maheema Engineering & Construction (Pvt) Ltd has started work on their new ventures, Mirihana Villas. The project is expected to be completed mid this year,

additionally they have five more ongoing projects.

5 / Lamudi Magazine

6 / Lamudi Magazine

THE REAL ESTATE IN WAYAMBA

7 / Lamudi Magazine

The changing socio-economic background in the North-Western province is having an effect on its real estate condition and subsequently, on the financial status of Sri Lanka.

Covering a vast land area of around 7,888 km2 and

a total population numbering roughly 2,448,000,

the North-Western province (or “Wayamba Palata”

in Sinhala and “Vada Mael Maakaanam” in Tamil)

is the fourth highest contributor to the GDP

of our island. According to the Central

Bank report, it is responsible for

more than 9.6 percent of the

nation’s GDP as of 2012.

We have identified the

importance of economic

development within the

North-Western region, since

it has a direct effect on the

country’s real estate market.

Ranked as the fifth largest

provincial region of the country,

it is administered by dividing into two

main sections, namely the district of Kurune-

gala and the district of Puttalam, respectively. Of

the two, the district of Kurunegala is certainly the

most prominent. With a total population of around

1,658,000 inhabitants and an area covering 4,816

km2, it is by far the biggest and the most populated

of the two constituencies.

According to the Department of Census and

Statistics and the Central Bank of Sri Lanka, Ku-

runegala has recorded the third highest number of

households seen in the country, which was around

437,931 housing units as of 2011.

From the lands belonging to this region, the largest

majority belongs to coconut cultivations that cov-

ers 31.6 percent of the total land area with home

gardens and paddy fields contributing 24.4 percent

and 17.2 percent respectively.

Furthermore, the majority of business establish-

ments within the region were retail establishments

that occupied roughly 53.8 percent of all commer-

cial ventures. These were followed by restaurants/

catering services at 12.8 percent and textile busi-

nesses at 5.2 percent.

According to the data gathered by Lamudi, the

most searched types of properties in Kurunegala

and Kuliyapitiya are houses, land and commercial

spaces.

Compared to its larger half, the dis-

trict of Puttalam displays relatively

modest figures. Its population is

at around 790,000 and the land

area it occupies is roughly

3,072 km2. Nevertheless,

the region containes around

186,765 housing units as of

2010. The land use recorded

in Puttalam displayed similar-

ities with Kurunegala, since the

majority of its terrestrial properties

were used for coconut cultivation. The

total land area used for this lucrative busi-

ness within the district was at around 23.1 percent.

Miscellaneous cultivations contributed another 19.3

percent and home gardens around 9.4 percent of

the total land surface. Similar to Kurunegala, the

majority of commercial properties belonged to re-

tail establishments, which comprised 43.9 percent

of all businesses. Restaurants/ catering services

and textile ventures consisted 9.2 percent and 4.7

percent correspondingly. According to Lamudi data,

the town and city areas of Wennappuwa, Kalpitiya

and Chilaw provided the highest opportunities for

houses, land and commerical properties within the

regional real estate market.

“The highest majority of the lands belongs to

Coconut cultivations that coveres 31,6% of

the land area.

8 / Lamudi Magazine

The first step toward Sri Lanka’s development

began in the suburbs of Colombo, in towns such

as: Malabe, Battaramulla, Rajagiriya, Sri

Jayawardenapura Kotte, Dehiwala, Mount-Lavinia

and Wattala. These towns are now home to sev-

eral mid-range and luxury condominium projects,

including: Orchid Malabe by Nivasie Developers,

Clearpoint Residencies and Fairway Elements,

Fairway Sky gardens, Fairway Residencies.

Malabe is one of the fastest growing towns just

outside of Colombo where the authorities are

currently planning the country’s first monorail

and an outer circular ring road. With attractive

amenities close to Malabe, an increasing number

of people have begun moving to the town from

the city centre and other nearby areas.

Malabe is becoming increasingly affordable for

the middle-income bracket, as the local residen-

tial market focuses predominantly on mid-range

housing; in this area houses cost around LKR 10

Rising property prices in the city centre have created a sub-market on the outskirts of Colombo, where the highly-populated middle-income group can afford to purchase or rent properties. While luxury developments are rising in Colombo, several projects have been launched in the suburbs, to cater to those searching for affordable real estate.

THE RISEOF SUBURBS

9 / Lamudi Magazine

million, in comparison to the same type of property lo-

cated between Colombo 1 and 15, which would average

at LKR 15 million. The town is currently in the growth

stage; consequently, buying a property here would be

an investment in Malabe’s future. Once infrastructural

developments are complete, the price of property is

expected to rise rapidly.

Battaramulla, Sri Jayawardenapura Kotte, Moratuwa,

Panadura and Wattala are also attracting affordable

property seekers, due to improved road and traffic

conditions, and attractive property prices.

Wattala is a highly appealing area, due to its prox-

imity to Colombo 15. Recently, the roads connecting

Colombo 15 and Wattala have seen significant de-

velopment, which aimed to improve the condition of

those travelling toward the Bandaranaike International

Airport in Katunayake. With plans for continuous road

developments, the area is rapidly increasing in value

and becoming more popular. Despite its proximity to

Colombo, the properties in Wattala are much more

affordable than Colombo 15.

The suburbs of Colombo are not only attracting locals,

but also expatriates. A growing percentage is looking to

invest in suburban areas of Gampaha, Kandy, Galle and

Kurunegala. During the years of unrest, a large number

of Sri Lankans relocated to the United Kingdom; today,

many of these nationals are looking to invest in Sri

Lanka. These buyers are showing interest in Colombo’s

growing suburbs. Lamudi’s data shows house-hunters

from both the UAE and the UK are attracted to areas

including Kalutara, Batticaloa and Puttalam.

As Colombo transforms into a commercial hub, and the

number of luxury residential developments increases,

the suburbs have become a popular alternative for

investors looking for untapped markets, as well as for

house-hunters looking for an affordable alternative,

away from the hustle and bustle of the city.

10 / Lamudi Magazine

No 45, Alfred House of Gardens, Colombo 3


Group Chairman:

S. Thumilan

ADVERTORIAL

The trend of condominium development in Sri Lanka’s property market has been given a boost by the Blue Ocean Group of Companies one of Sri Lanka’s largest and most respected conglomerates, headed by Chairman Mr. Thumilan, with some unique Investment Property, Holi-day Home and Luxury Living concepts.

The group’s Chairman S. Thumilan, who owns an

illustrious portfolio himself, is instrumental to the

Group’s extensive diversification that include Edu-

cation, Engineering and Construction, Real estate,

corporate Consultancy, Trading, Electrical and

Engineering Consultancy. “To be the most respected,

ethically sound and socially responsible company,”

has been the base of conglomerate’s many endeav-

ours, explains S. Thumilan. Embracing the “Blue

Ocean Strategy” that helped achieve generation of

growth and profit through innovation, in a created

and uncontested environment, the Group engages

in its key markets in Asia Pacific, European, Middle

East and East Asian regions. Covering all aspects of

construction, its services encompass an umbrella

solution to contractors and customers. The company

offer both construction and consulting including for

the construction of private houses.

Some recent analysts of the real estate market have

predicted a downturn in the housing and condo

market in the country, which does not appear to be

so, for the fundamental reason that they do not take

into account the target groups for which these prop-

erties are being constructed. By using a ‘one-size-BLUE

OCE

AN

GROU

P OF

COM

PANI

ES


fits-all approach’, the analysts misinform readers and

skew the reality of the state of affairs in the property

market today.

It is important to recognize that more than 70% of

buyers of condominiums in Colombo are expatriate

Sri Lankans, who would like to own a property they

could call their own back home. The Central Bank, the

Board of Investment Sri Lanka and relevant ministry

officials are striving to provide support and encour-

agement for developers to inject high standards and

raise the profile of the housing market in the country.

Any Sri Lankan, whether residing on the island or

abroad is familiar with the resilience the country has

shown time and again despite political and economic

turmoil. If anything, it is the property market that has

effective “shock absorbers” to act as a hedge against

inflation and other economic concerns.

Despite the ethnic conflict, that has dogged the island

for several decades in the past resulting in economic

ups and downs, the prices in the city’s apartment

market have appreciated steadily over the past sever-

al years and proved to be a lucrative investment.

Of course the reliability of the developer is a key

factor that determines the success of the project. The

developers credentials and past track records are

of paramount importance and need to be given due

attention prior to making investments in the real es-

tate market. Aside from the group has branched out

extensively with a number of subsidiaries. To name

a few of its vast portfolio; The group’s fully owned

subsidiary Link Engineering (Pvt) Limited, which has

gained great reputation locally and internationally,

has already cemented the position of the Blue Ocean

Group in construction as its leader.

It has over 35 years of experience of the construction

field through which it has gained many accolades for

excellence.

Blue Ocean Group is an expert at quality construc-

tions and their every project is BOI (Board of Invest-

ment, Sri Lanka) certified. All apartments that Blue

Ocean has constructed are monitored and governed

by ISO 9001-2008 quality systems and they are in the

most prestigious locations in Sri Lanka. Their assets

grew in the past few years recording a turnover of

more than billions. The company now engages in

building private and public mixed project-portfolios

which smoothens and stabilizes their financial flow

and profitability. With this growth, they will further

strengthen their position and will approach high

revenue projects, thereby assuring their brand an

enviable position not only in Sri Lanka but in the inter-

national market as well.


One of the company’s invaluable assets is human re-

source: Chartered Architects, Chartered Engineers,

Chartered Accountants, Interior Designers and

other professionals in varied fields who have gar-

nered extensive exposure and industry experience

locally and abroad over the years. “In comparison

with present market standards, our professionals

are highly capable of contributing to improving real

estate value,” stressed Thumilan. Clients are further

attracted by the sheer volume of work undertaken

and delivered within a scheduled time-frame by the

company.

Due to its unconventional expert consultation

services on property management, development

schemes, real estate investment options and other

related aspects, Blue Ocean Group has gradually

gained prominence in both local and international

arenas.

By investing in unique development projects being

constructed by reputed entities such as the Blue

Ocean Group of Companies, the investor is guaran-

teed timely delivery, international quality homes,

and a definite appreciation in property even before

he has taken possession of the condominium. Sta-

tistics indicate that buyers of Blue Ocean apartment

projects have reported a 25-30% increase in value

annually. Furthermore, at present the secondary

market for apartments in particular is said to be

having brisk sales reselling at more than 100% the

original purchase price 3 – 4 years ago.

Considering the official 32% increase in construction

costs per annum the world over, buyers who put off

investing in a home in Sri Lanka because of a variety

of eco-political reasons find themselves completely

out priced by the market years down the line.

The reality is that building homes is never going to

get cheaper, even if the economy starts skyrocketing

upwards. Not to mention the fact that land prices too

have gone through the roof in residential areas in

Colombo. More and more wise investors realize that


buying a ready condominium in a premier residential

area is much cheaper than just buying land in that vi-

cinity, let alone factoring in the cost of constructing a

home. Rents have also been registering growth of 18%

year on year, which is another encouraging factor that

affects the buyer’s decision to invest in a high profile

development in an excellent location, as it guarantees

a return on investment.

Moreover, unique projects such as those developed by

the Blue Ocean Group of Companies offer not just a

home but a “lifestyle” – with an array of sports, recre-

ation facilities and other utilities and conveniences at

their fingertips, all within the confines of the condo-

minium complex itself! In the race to simplify our lives,

cut down commuting time to and from work/school

and spend more time with loved ones, a conveniently

located condominium offering recreation and comfort

seems like an opportunity too good to be missed. Blue

Ocean’s projects offer hi-tech security equipment and

trained security personnel to guarantee safety for its

residents, another feature that is much appreciated

by investors. It is after all a buyers’ market and buyers

are savvy when it comes to recognizing which project

will prove lucrative.

The booming property market, Thumilan notes, “Of

which owners now experience higher appreciation,

is due to the Government’s timely vision targeting eco-

nomic growth. It in turn increased the demand for the

property,” he stressed. Low lending rates, low cost

loans for property buyers and a high increase in the

number of long-stay tourists have greatly contribut-

ed to increasing the demand for property, particular-

ly for apartments. “We are very happy that we were

able to create wealth for our customers through

property. While enhancing rental income as well as

appreciation in property value for owners, the poli-

cies also help long-stay foreigners finding affordable

rental apartments,” says Thumilan.

The fact that the Blue Ocean Group of Compa-

nies has brought in more than billions in terms of

valuable foreign exchange into the country on the

strength of investments made by Sri Lankan expatri-

ates in its projects goes on to prove the contribution

the property development sector is making towards

the country’s economy. Needless to say with millions

of Sri Lankan expats living overseas and wanting to

make their way back home the future potential of

the property development sector contributing to the

Sri Lankan economy will be greater.

Given the advantages of combining most dynamic

destinations, proximity to the highlights of city living

and luxurious lifestyle within the apartment itself

given its accent to indulgent details and stringent

international standards, Blue Ocean apartment will

assuredly be a ground-breaker in this fast develop-

ing metropolis of Colombo, Sri Lanka.


WEST COAST LUXURYDriving around Colombo today is ex-tremely different to only five years ago. The rapid transformation of the city is extraordinary; now there are towering skyscrapers you must crane your neck to see, beautifully paved roads, well-designed parks and jogging tracks, and an ample amount of supermarkets, schools, company headquarters and hospitals.

Property in Sri Lanka was once just a means of

shelter, but today, it is a lifestyle package and a key

driver of the nation’s gross domestic product (GDP).

Development projects today are designed to provide

the buyer with much more than just shelter. From

comfort to design, needs to wants, every element

adds value to the property sold in Colombo.

Luxury living is a growing trend in the Colombo area,

with several projects in play. The concept of luxury

living is presenting itself in the form of high-price,

tall condominiums across the city. Altair, Clearpoint

Residencies, Platinum 1, Destiny and One Galle

Face by Shangri-La are perfect examples of luxury

developments, satisfying the demand for large living

spaces.

With living areas alone averaging over 2000 square

feet, these developments have been designed specif-

ically to suit the needs of the modern house-hunter.

Colombo has attracted a large number of local and

international investments that focus on providing

the best luxury real estate in the South Asian re-

gion. As noted by Ceylinco Homes International,

a considerable amount of demand for these luxu-

rious properties (nearly 50 percent) will come from

Sri Lankan expatriates who are living and working

abroad in Europe, North America, the Middle East

and Australia.

With the 2016 foreigner-friendly budget removing

the 15 percent land leasing tax for foreigners and

shortening the approval period for foreign direct

investment requests, international investments

for developments are expected to increase. The

government has also proposed a more relaxed tax

structure within the construction sector, by revising

taxes on building materials. This would reduce the

cost of construction and therefore attract more

developers to join the real estate playground.

Due to the high cost of construction, a number of

local developers have been investing in projects in

Colombo’s suburbs, as the overhead costs are gen-

erally much higher within the city. This reduction in

costs could encourage more developers to invest

in central Colombo, and in the city’s growing luxury

sector, as the price of construction per develop-

ment would decrease.

Colombo’s transformation to become a luxury des-


Singapore Dollars (USD 1,850). In com-

parison, a square-foot in Sri Lanka’s

luxury residential market would cost

around Rs. 45,000 (USD 315), based on

a report by Jones Lang LaSalle.

This indicates that investing in a luxury

home in Colombo today would likely

provide a higher return on investment

in the immediate future, as the city is

undergoing such rapid development,

and property prices continue to appre-

ciate, as opposed to Singapore.

The Philippines is considered one of the

world’s leading emerging countries. The

GDP growth rate and the exposure to

luxury real estate developments in the

Philippines are almost identical to Sri

Lanka; however, the cost of purchasing

an average condominium in the Philip-

pines is much higher than in Sri Lanka.

According to data from Lamudi Philip-

pines, the average condominium price

per square foot in cities such as Manila,

Makati and Quezon City ranges from

8,800 Pesos (LKR 26,500) to 12,900

Pesos (LKR 38,700); this is almost

equivalent to the average luxury con-

dominium in central Colombo. A recent

report by Jones Lang LaSalle revealed

that luxury condominiums in central

Colombo range from LKR 35,000 to LKR

45,000 per square foot.

As the above data highlights, it is much

cheaper to invest in a luxury project

in Colombo. Sri Lanka’s commercial

capital shows signs of increasing de-

mand for high-quality real estate, with

positive developments for property

investors and a stable government en-

couraging international investment.

tination has seen the development of both sky-high

condominium, mixed-use commercial and residential

projects. The construction of luxury retail units, of-

fice space, and commercial facilities is increasing the

value of properties in the area. As more upper-in-

come residents purchase luxury properties within

the city, the demand for commercial and mixed-use

projects is only expected to grow.

According to data from Lamudi Sri Lanka, the num-

ber of retail assets, both for sale and rent, makes

up around 40 percent of the commercial properties

in the country. The increasing demand for retail

space indicates that Colombo is becoming a regional

commercial hub, with the opportunity to grow and

compete with neighboring giants such as Singapore.

Mixed development projects including One Galle

Face by Shangri-La, Colombo City Centre by Abans,

and Port City itself, highlight the increase in mixed-

use developments, combining luxury residential

housing and high-quality commercial space.

Colombo is by far Sri Lanka’s biggest retail hub,

contributing the largest proportion to the country’s

overall GDP. The majority of Colombo’s merchandis-

ing outlets are located along the city’s high streets,

such as the famous Galle Road. These are in close

proximity to a number of up-and-coming luxury

projects including: Altair, Avic Astoria, One Galle Face

by Shangri-La and Platinum 1.

As an upcoming center for luxury real estate, how

does Colombo compare to its neighbours?

Singapore has noticed a fall in GDP growth rate, from

6.2 percent in 2011 to 2.9 percent in 2014. According

to Bloomberg, Singapore’s real estate market has

been facing a slump for the past seven quarters and

it ‘s predicted to see tougher times. The residential

property prices have decreased by 6.7 percent since

the peak in September 2013. In an interview by CNBC

in Singapore, it was identified that high end residen-

tial market of the country had hit rock bottom as

of late. It further highlighted lately, a square-foot in

Singapore’s luxury residency was sold for over 2,600


When talking about property prices in Sri Lan-ka, 2014 was without a doubt a year of major change. The country saw an increase to prices in all property categories, with costs pushed by low interest rates. This resulted in a high number of companies investing in real es-tate, creating significant momentum and high demand predominantly within the mid range and premium segments. Luckily, prices don’t fluctuate this way every year. For

example, land prices of Colombo increased by 100

percent in 2014; however, due to the political instability

and investors’ hesitation in 2015, prices have stabilized

and adjusted to the market, with no significant changes

throughout the year. This year, industry experts expect

a gradual and stable increase in prices, without signifi-

cant spikes which occured in 2014.

Due to low interest rates, demand is mostly concen-

trated within the mid range segment, where properties

average from LKR 15 to LKR 40 million. The highest de-

mand for these are within central and suburban areas

of the commercial capital, Colombo, with projects like

the OnThree20 and Havelock City.

When it comes to leasing residential real estate, the

primary renters are foreigners, who consider cost

Contribution from:

Navin Dullewe and Chandaka De SoysaCOO and CEO at Acquest (Pvt) Ltd

BUYING VERSUS LEASING


the most important factor. And why is this? Between

the last quarter of 2014 and the first quarter of 2015,

approximately 1000 apartments were constructed in

Colombo. This sudden increase in supply has diluted

prices, making residential apartments more affordable.

Since the majority of developers work on pre-sales,

their future projects are dependent on cash flow. As

a result, it is difficult to oversupply the market. While

there are a significant number of luxury developments

currently in the pipeline, the purchase of premium

properties is popular among Sri Lankans who are living

abroad. This category amounts to three million people,

of which 15 to 20 percent are estimated to be able to

purchase premium property, making it a huge market

for developers and investors alike.

However, there are a number of foreign developers

who do not have enough knowledge of the local mar-

ket; they conceptualize apartments based on their own

experience, neglecting to research crucial factors such

as: location, unit size, pricing and marketing strategy,

as well as popular interior design and finishes. Devel-

opers who fail to understand the local market face the

risk of unsold units.

Are you considering purchasing a property in Sri

Lanka?

More often than not, a decision is made based on emo-

tion, rather than rational decision. To avoid making a

rash decision, or making a choice you may later regret,

property-seekers are advised to spend more time

researching the state of the real estate market before

purchasing. This will enable a better understanding of

current supply and demand, to better predict the rent-

ability of a property. As the market is relatively small

and there is not an abundance of accurate information

available, buyers should consult with a qualified indus-

try professional, to ensure they have all of the facts

and figures regarding their potential purchase. Before

signing on the dotted line, house-hunters must always

research the developer, their background and experi-

ence, to avoid possible disappointments.

PAKISTAN 5.4

Growth rate 2014

INDIA 7.4

SINGAPORE 2.9

SRI LANKA 7.4


During Lamudi Sri Lanka’s second annual real estate

conference, ‘Island Under Construction’, Roshan

Madawala, CEO of Real Estate Intelligence Unit (RIU),

explored the key reasons for such concentrated

investments in Sri Lanka. One contributing factor

is Sri Lanka’s extremely optimistic macro-environ-

ment. The gross domestic product (GDP) has been

growing at an average of 7.2 percent annually since

2009, while the GDP per capita was recorded at LKR

530,000 in 2014.

When compared to neighbouring countries such as

Pakistan, India or even Singapore, the growth rate

per annum is much faster in Sri Lanka. According to

the World Bank, Sri Lanka’s GDP growth rate was

7.4 percent in 2014; in the same year, Singapore

recorded a 2.9 percent growth rate, Pakistan saw 5.4

percent and India 7.4 percent.

During the conference, Mr. Madawala explained

that an increasing number of Sri Lankan nationals

living abroad and foreigners are contributing to the

country’s growth. Many locals, who left the coun-

try during the civil conflict, have been returning at

a steady pace; meanwhile, the end of conflict and

MARKET OVERVIEWThe promotional tagline for Sri Lanka in the current era should be: “Your next investment destination,” because the growth rate has not yet indicated any signs of slowing down. Local and international investors have been pouring funds into the nation which are to be directed toward real estate and tourism sectors. But why?

32% 11–15M

11% 16–20M

21% 21–25M

11% 26–30M

11% 31–35M

7% 36–40M

7% No Resp

Ideal price range in luxury apartments (LKR)

PAKISTAN 5.4

Growth rate 2014

INDIA 7.4

SINGAPORE 2.9

SRI LANKA 7.4


Over the past two to three years, the construction sec-

tor has been positively contributing to Sri Lanka’s grow-

ing GDP. Research indicates that the sector is the fastest

growing, with its contribution to GDP raising from 14.4

percent in 2013 to 20.2 percent in 2014.

The RIU’s research into the ideal price range in the luxu-

ry apartment sector concluded that 32 percent of those

surveyed would pay LKR 11 to LKR 15 million, while 21

percent selected the LKR 21 to LKR 25 million range.

Where are these investments focused?

Although the suburbs of Colombo and other growing cit-

emergence of a steady government has led internation-

al expatriates to become more confident in investing in

a second property or a holiday home.

Higher spending power has been noticeable in recent

years, as the importation of luxury vehicles has in-

creased, more overseas travel has occurred and there

has been an increase in up-market brands setting up in

the country. With people accumulating a higher dispos-

able income, the tendency to look for diverse invest-

ment opportunities has risen. The local real estate mar-

ket’s continuous stability in comparison to stocks, fixed

deposits, or foreign exchange, has resulted in increased

interest in real estate.

ies such as Kandy, Galle and Gampha are attract-

ing investments, Colombo remains the leading in-

vestment ground for both local and international.

Demand for luxury apartments comes predomi-

nantly from high earning locals and expatriates,

who account for almost 30 percent of luxury real

estate buyers.

Research statistics from the RIU indicate that only

783 luxury housing units were available in 2000;

fifteen years later, there are approximately three

and a half times more units available. According

to RIU’s predictions, the number of luxury hous-

ing units designed for the top end market, is es-

timated to surpass 6000 by 2019. Aside from the

top end developments , there are more than twice

as many smaller semi-luxury apartment projects

launched, under construction or approved. These

are smaller in terms of number of units but have

some of the features of a luxury development.

According to Madawala, the country’s commercial

sector is also growing. The rate of growth, how-

ever, is slower than the luxury residential market,

due to the higher returns obtained through the

growing demand for residential space.

Nonetheless, commercial property demand is on

the rise and projects currently under construc-

tion and/or planning are estimated to double

the current stock of space. Currently, there are

companies in Colombo working from residential

properties and poorly-maintained office build-

ings; this has resulted in increased demand for

high-quality, affordable commercial spaces.

Madawala shared predictions for the future of

Sri Lanka’s real estate market: “while Sri Lanka

is expected to reach high-middle income status

in 2016, it is yet not the same calibre as nearby

countries such as Singapore. However, the growth

rate is promising; it is expected that by 2050, Sri

Lanka will be one of the world’s top 10 global

economies.”


MEGA TWIN TOWER One of the leaders in the Sri Lankan Real Estate

industry, Home Lands Skyline (Pvt) Ltd., a fully

owned subsidiary of Home Lands (Pvt) Ltd headed

by Nalin Hearth, recently added another brand to

the company’s flagship condominium project ‘Luxe

Highway Residencies’ which is a 112 apartment twin

tower project with all the modern amenities to fulfill

demands of urban vertical luxury living in Kottawa.

Once completed ‘Luxe Highway Residencies’ will

have an on the premises a supermarket, bakery, café

and a restaurant, a beauty parlor, ATM, pharmacy,

clothing store and a Laundry to meet aspirations for

convenient living.

According to the company’s officials ‘Luxe Highway

Residencies’ is a Twin Tower Condo project both

towers will rise to 11 floors and will have 112 apart-

ments including 8 penthouses. Conceived, designed,

and presented by one of Sri Lanka’s leading players

in property development, Luxe Highway Residencies

brings sumptuous modern vertical dwelling to the

emerging city of Kottawa, which is poised to be an

important Economic Center of the island. Kottawa

becoming a key suburban location and a Transpor-

tation Hub in the planned Colombo Megapolis under

the new development plan of the Government.

Located in the intersection of the outer secular

highway system and the Southern Expressway, Kot-

tawa will have easy access to major cities and to the

airport through a high-speed road network.

CONDO PROJECT LUXE RESIDENCIES LAUNCHED BY HOME LANDS SKYLINE

Luxe Residencies plans to have a large rooftop

garden with a BBQ Pavilion, it provides a breath-

taking panorama of the scenic surroundings. Space

for social and recreational activities in the city and

impressive amenities and community features offer

all the modern conveniences you expect. Officials

at Home Lands Ltd said that to meet the needs and

preferences of homeowners; Luxe Highway Res-

idencies offers four different apartment designs

from 2 bed room apartments for those who prefer

manageable space of living to sprawling penthouses

for spacious vertical dwelling. All units are fully air

conditioned with split type units which are fully fit-

ted with a modern pantry with gas connection. Three

bed room apartments come in two different designs

and the sprawling Penthouse is for those who longed

for luxury with ample space for dining, entertaining,

living, recreation, working and working out. The

penthouses can be customized to suit the needs and

preferences of the potential home owners. At the

completion of the project each apartment will have

its own reserved parking space while penthouses

have two parking units, while fifteen parking spaces

are reserved for guests. The condominium will also

include a state-of-the-art gym that provides a con-

venient place to build up a sweat, and a pool which

is the perfect place for residents to relax. There will

also be a community hall for socializing and a func-

tion room to host celebratory events.

ADVERTORIAL


What is the current demand for commercial

properties in Colombo?

Commercial property demand is increasing rapid-

ly, stimulated by the rise of industries, such as: IT/

ITES, banking and financial services, SME’s as well

as professionals. This demand is driven by both Sri

Lankan companies looking to expand, and interna-

tional companies from all over the world, entering

the local market due to its strategic location.

Sri Lanka is also experiencing an impressive start-

up culture; the increasing number of new busi-

nesses are creating more demand for commercial

properties. Although 2015 was a challenging year,

due to changes in the political and economic land-

scape of the country, we now see that the market

is picking up once again and it is encouraging to

see that the government is implementing some

progressive measures to boost foreign invest-

ment.

What is the current supply in terms of square

feet? What are the hottest areas in Colombo?

According our research, by 2016/2017 time period

the country will be three- four million square feet

short of perceived demand. Currently, Colombo

and the SBD locations have a low vacancy rate

hence limited capacity. In terms of the hottest

locations, the CBD areas such as Colombo 1, 2, 3 &

4 are currently the most in-demand areas for com-

mercial properties. However, other areas of the

city are quickly emerging, such as: Kotte, Colombo

5, Colombo 6 & Colombo 10.THE R

ISE O

F THE

CO

MM

ERCI

AL SE

CTOR

Interview with:

Dr. Nirmal De SilvaCountry Head of Regus


most in-demand areas outside Colombo are: Kandy,

Kurunegala, Galle, Jaffna, and the area between Trin-

comalee and Batticaloa. Many companies are now

looking to establish their presence in these areas

and to recruit professionals living in close proximity,

due to infrastructure limitations investors have not

exemplified much keenness to explore opportunities

in these locations. The proposed Megapolis Plan of

the Government will also see greater commercial

activity in Gampaha, Kalutara & Puttalam Districts.

This alongside the further investment in infrastruc-

ture should therefore boost the rise of commercial

space in areas outside Colombo.

How would you describe the price

range for the hottest areas

within Colombo?

In Colombo 1, the prices range

from LKR 180 – LKR 350

per square foot Colombo 2

prices start from LKR 150

and reach up to LKR 250. In

Colombo 3, prices start from

LKR 150, while in Kotte, prices

start from as little as LKR 100

–LKR 150. Although limited supply

is pushing prices to rapidly increase, Sri

Lanka’s commercial spaces are significantly cheap-

er than neighbouring countries, making it an attrac-

tive spot for businesses.

What are the financial options for commercial

real estate?

While previous laws prevented foreigners from own-

ing property, non-nationals were allowed to lease

property with a 15 percent upfront tax. The new

government has proposed the removal

of this lease tax for non-nationals.

The budget proposal released in

November should significantly

boost foreign investment and

welcome more companies to

invest in Sri Lanka. To date,

the trend has been leasing

commercial properties, but

due to the latest proposals

this may change in upcoming

years with more companies opting

to either acquire existing buildings

or develop new ones. Additionally, there

seem to be plans to establish the country’s first real

estate investment trust (REIT), which will hopefully

encourage increased investment and greater supply

to meet the market demand. The proposed removal

of stamp duty for REIT’s will also result in more peo-

ple considering real estate as an investment option.

Is there demand for commercial properties out-

side of Colombo?

The government is planning to create 25 economic

zones within the country; consequently, we expect

to see the creation of new commercial opportunities

in each zone. Aside from this project, currently the

“Colombo 1, 2, 3 & 4 are

currently the most in-demand areas for

commercial properties


A GREEN HEARTGlobal StrengthHolcim Lanka Ltd counts over a century of global ex-

pertise in the cement and aggregate manufacturing

industry. The company has global representation in

over 73 countries, and an employee base of 68,000

professionals.

Drawing from the rich heritage of excellence and

commitment to development, Holcim Lanka Ltd is

the local representation of the Swiss giant and has

continued to play a key role in the infrastructural and

economic growth of Sri Lanka since the inception of

its operation.

To date Holcim Lanka Ltd operates two fully func-

tional cement and aggregate manufacturing plants

in Galle and Puttalam.

A Triple Bottom-line As the leading brand of cement available in the local

market, Holcim Lanka Ltd accounts for the devel-

opment of one in three houses in Sri Lanka, further

to the company’s extensive involvement with the

infrastructural development of the country. In pursu-

ing the triple bottom-line paradigm of sustainable

business, Holcim on a global scale and Holcim Lanka

in a localized context has continued to contribute

greatly towards the economic, environmental and

social benefit of Sri Lanka and the world as a whole.

Holcim Lanka Ltd established Geocycle, a waste

management arm that utilizes a co-processing

method to provide end to end waste management

solutions, for enterprises and other organizations.

By co-processing the waste materials, in kilns used

for cement manufacturing by Holcim Lanka Ltd,

Geocycle has been successful in making significant

contributions towards the reduction of the carbon

footprint and energy consumption of Holcim Lanka

Ltd and its clients.

Sustainably DrivenHolcim Lanka Ltd has successfully reduced its own car-

bon footprint and impact on the environment and the

communities it operates in. A prime example of these

continuous measures is the installation of de-dusting

hoppers and water pumps at Galle Port to limit the

dust emission to the environment during the logistical

loading and unloading of raw materials at the port.

Another key point of reference for the commitment

made by Holcim Lanka Ltd towards sustainable de-

velopment is the quarry rehabilitation programme

undertaken by Holcim Lanka Ltd with the objective of

reviving the quarry areas back to their original state

following the mining process. The replenishment and

relocation of the flora and fauna of the area are vital

factors of the quarry rehabilitation programme.

In addition, a number of CSR projects have been imple-

mented in order to facilitate the betterment of the lives

of stakeholders and community members at the base

of the pyramid. Further, Holcim Lanka Ltd has con-

tinued to make strategic investments in the avenues

of education, shelter and professional development

through several key initiatives.

Passion for the FutureHaving achieved unprece-

dented growth in the local

market and successfully in-

tegrating into the local eco-

nomic resurgence, Holcim

Lanka Ltd is a torchbearer

of the country’s progress.

The future bears great prom-

ise for the nation and Holcim Sri

Lanka Ltd aspires to lend its strength and

expertise to the country and its people, while ensuring

sustainability in all areas of growth.

“Holcim Lanka Ltd accounts for the

development of one in three houses in

Lanka

ADVERTORIAL


“Holcim Lanka Ltd accounts for the

development of one in three houses in

Lanka


WHAT 2016 HOLDSMigration away from capital cities, infrastructure improvements and increased international interest from investors are just some of the ex-pected developments for real estate markets within emerging nations, including Sri Lanka.

App focus Mobile is driving innovation in developing countries.

Internet users in these countries are skipping the

traditional desktop usage, and moving straight to

mobile. While 2015 saw more emerging markets-fo-

cused companies developing their internet presence,

2016 will see real estate professionals turning their

attention to apps.

As a result of high costs of Internet services in many

developing countries, apps are increasingly popular

when it comes to interacting with online companies.

As Internet penetration strengthens in second-tier

and suburban areas, reduced mobile connectivity

costs, more affordable SIM cards and the evolution

of mobile technology are driving app usage.

Second-tier growth Industry professionals have already noted the

increased attraction of second and third tier cities in

emerging urban areas. Rapid population growth

has led to the physical growth of urban areas

in cities including Colombo, Jakarta, and

Manila. As larger cities become slowly

saturated, real estate developers

and investors alike are turning

their attention to cities

such as Kandy and

Galle. In second and third tier cities, property is sig-

nificantly cheaper as a result of higher land availabil-

ity and lower building costs.

According to Hugh van der Kolff, managing direc-

tor of Lamudi Sri Lanka: “The next year will see

the development of Sri Lanka’s smaller cities. The

government must invest in these cities to improve

transport services, water and electricity supplies,

and develop their infrastructure so that they can

compete both with Colombo, and on an internation-

al scale. In these cities, developers are faced with

lower land, resource and building costs; as a result,

investors get more for their money. This makes

these second tier cities a very attractive option

for real estate professionals,” he concluded.

Commercial property growthAs countries such as Sri Lanka experi-

ence rapid population growth, urbaniza-

tion, and economic development, demand is

increasing for commercial property. This includes

mixed-use developments, shopping malls, retail

space and office units.

The next 12 months will likely see an increase in

commercial property developments across Sri Lan-

ka, and neighboring countries, as the sector must

accommodate population and tourist growth, as well

as increased interest from international corpora-

tions. These projects are not only driving economic

growth, they provide employment opportunities,

and boost the value of surrounding properties.

REIT availability Will 2016 be the year of the real estate invest-

ment trust (REIT)? The last 12 months have seen a


number of real estate investment trusts opening in

the emerging markets, encouraging investment in

the sector. In October of last year, the Capital Mar-

kets Authority approved Kenya’s first income real

estate investment trust, also known as a I-REIT,

to be issued by investment manager Stanlib

Kenya. This marks the first ever license to

an asset management firm, to list on

the Nairobi Securities Exchange

(NSE). In June 2015,

Pakistan’s

first ever REIT

was launched, paving the way for expected growth

in the country’s commercial property sector.

More emerging nations are expected to follow this

lead over the next 12 months. Following the an-

nouncement of Sri Lanka’s 2016 budget, industry

experts forecast the creation of the country’s first

REIT, to encourage local and international real estate

investment.

Increase in foreign investment

Laws are changing in many of the

emerging markets. While it is still

not legal to own property in all coun-

tries, new legislation is being drawn up

to encourage real estate investment.

Sri Lanka’s Finance Minister recently

announced plans to remove the 15 per-

cent land leasing tax for foreign investors,

which is expected to have great impact on the

local real estate market. The removal of land lease

tax for foreigners is expected to increase the num-

ber of international investment in the sector.

December 31st, 2015 was the deadline for the

integration of the Association of Southeast Asian

Nations. The aim of the integration is the creation

of a single competitive economic region, encour-

aging economic development and international

investment. This is expected to significantly increase

foreign direct investment and international interest

in the region.


Brief us about Capital TRUST Properties (Pvt) Ltd.

Capital TRUST Properties is a total real estate

solution provider. Our services include: Property

Broking, Property Management and the Facilitation

of Investments in optimizing property as an Asset

Class. We offer a range of allied services for all types

of property businesses catering to a wide spectrum

of clientele. The company offers an exclusive prop-

erty portal www.ctp.lk with over 3,000 properties in

Colombo and its suburbs.

We are part of a larger group: in 1991, Capital TRUST

entered into the Financial Services Industry as a

Stock Broking firm, today the Capital TRUST Group

of Companies has expanded into many areas of

businesses including Margin Trading, Investment

Advisory, Wealth Management, Property Develop-

ment, Property Brokering, Information Technology,

Automobiles and Education. Through our head

office in Colombo and branch network we serve over

50,000 clients including high net worth individuals,

corporate bodies and local and foreign institutions.

Our flagship subsidiary, Capital TRUST Securities has

been ranked among the top Stock Broking firms in

Sri Lanka in terms of Brokerage Turnover in the last

12 years.

What is Capital TRUST currently working on?

Increasing prosperity among the urban population

has been propelling the demand for world-class

luxury living in apartments within Colombo city. In

this light Capital TRUST Residencies (Pvt) Ltd. group’s

property development arm has commenced creating

living spaces that take advantage of all the modern

luxurious facilities of the city while allowing peo-

ple to live in exclusive and secluded communities.

The first two major projects are located on Thim-

birigasyaya Road, Colombo 5 and on Vajira Road,

Colombo 4 with 40 apartments on ten storeys and 16

apartments on eight storeys respectively.

Capital TRUST Residencies are designed by Sri Lan-

ka’s foremost architect of luxury high rises-

Milroy Perera Associates and constructed by a top

tier construction company with a ICTAD C1 status

which is the highest grade assigned to a construction

company.

What are the special features in your apartment

units?

All units are built to world class specifications. All

apartments are fully air-conditioned and are pro-

vided with hot water. The pantry will be fitted with

a high quality pantry cupboards, hood, hob, LP gas

inlet and bathrooms are equipped with international

modern sanitary ware. Both complexes will include a

rooftop swimming pool, an ultra-modern gym and a

sky garden.

Minoli WickramasingheManaging Director / CEO at

Capital TRUST Properties

group

CAPITAL TRUST

For more information on Capital TRUST

Residencies you may visit

www.capitaltrust.lk or call (+94) 777 233 533.

The partner you TRUST in Real Estate

ADVERTORIAL


BEFORE YOU BUY A CONDOMINIUM UNIT

Guest writer:

Kirti HewamanneCondominium Specialist and

Independent Consultant

Is living in a condominium the right choice for you? If you can answer ‘yes’ to the majority of the below questions, buying a condominium may be the right choice.

Do you like the communal aspect of condomini-

um living?

If you buy a condominium, you will be the sole

owner of your unit. However, you will also be part

of a community. You will co-own all common areas

and elements, which means that you will have to

work with others to oversee the overall running of

the property.

Owning a condominium unit comes with a number

of responsibilities. These include:

• Maintaining and repairing your own unit

• Contributing financially to the maintenance,

repair, insurance and operation of the common

elements

• Living by the condominium corporation’s rules

• Participating in owners’ meetings

• Respecting the rights of other owners

Are you prepared to be involved in the running

of the condominium?

An additional responsibility for condominium

owners is attendance at regular owners’ meetings.

Here you must vote for the following:

• To elect the condominium board of directors

• How the condominium will be governed, includ-

ing any changes to by laws and rules

• On issues proposed by the condominium board

such as renovations

Can you afford monthly condominium fees?

Many buyers are surprised by unexpected increas-

es in monthly fees. However, owners of newly-built

condominiums may experience a higher increase

in fees in their second year of ownership, usually

because of inflation and because the budget for a

condo corporation’s first year of operation is set by

the developer long before the property is built. Al-

though the developer may be responsible for any

shortfall in that first year budget, fees often need

to be adjusted in the second year.

What are the different condominium fees?

Monthly common expense fees are calculated by

the size of a unit. These cover:

• Maintenance of communal facilities (eg. pool,

gym, etc.)


• Operating costs of fitness facilities, function

rooms and swimming pool

• Cost of security and cleaning staff

• Special assessments fees are additional to the

monthly common fees which cover unexpected

major repairs and shortfalls in the reserve fund

What if you fail to pay the fees?

If you do not pay your condominium fees, your

mortgage will likely be notified and the condo-

minium corporation will have the right to register

a certificate of lien against your unit. Once the lien

certificate is issued, the creditor will have the right

to sell the property, which are usually sold through

auctions.

If you have answered yes to the majority of

the above questions, then a condominium life

should suit you perfectly. However, before you

rush into making a purchase, make sure you

check off everything on this list:

• Verify how the condo fees are determined

• Check the rules and declaration of the condo-

minium to see if it suits your lifestyle

• Check the boundaries of your unit and verify if

the windows and doors are part of it

• Check if there are any pipes behind the drywall

part of the unit (in most cases, you will be re-

sponsible for their maintenance and repair)

• Check your repair and maintenance responsibil-

ities (for example, the maintenance of heating

and cooling equipment)

• Check what is covered in the corporation’s stan-

dard insurance

• Check the amount of money left in the reserve

fund

• Check if there is a shared facilities agreement

with another condominium or property

“If you can answer yes to the majority of the questions, then a condominium life should suit you perfectly


THE NEXT FRONTIERWhat happens when one of the oldest concepts in the world - housing - and one of the newest - technology - come together?The bottom line of technology is to make our life better by simplifying and optimizing daily tasks. This includes house-hunting. As a result of advances in technology, custom-ers today can easily browse 1000 of properties from mobile devices, checking photographs, locations and agent details as quick-ly and easily as possible. However, this is not always enough.

Photographs do not always give a true representation of

a property and at times they can be misleading. When

balancing a hectic work and home life, house-hunters

do not always have time to schedule a visit to what

seems like the perfect property, especially if it is located

in another city, region or even country.

The pre-sale of unfinished developments is common

practice nowadays, which leaves house-hunters with

only one option - to view their future property via 3D

models or photo prototypes. Furthermore, when visiting

an empty property, it can be difficult to visualise how

furniture will fit within the space, and whether a particu-

lar design will work.

A tool that will give property-seekers a realistic repre-

sentation of a property, regardless of its location or


THE NEXT FRONTIERstate of construction is increasingly necessary. Luck-

ily, technology never sleeps and new developments

are helping to solve this problem for the real estate

industry.

DronesAlthough drone technology is not new, its use within

the real estate industry has only just taken off. A

drone is an unmanned flying machine, controlled

by a remote from the ground. Most drones have a

fixed HD camera to capture images, as well as video

recording features to produce real time video trans-

missions. Through the use of drones, house-hunters

can see aerial photos of any property, and experi-

ence indoor and outdoor video tours, without having

to leave their current home. Due to their ability to

capture real time videos, drones are also a useful tool

for developers, to monitor the progress of property

construction.

Virtual RealityThe second option to provide realistic property

viewings is virtual reality, which enables the user

to experience artificial reality created by software.

Sounds too futuristic? According to Business Insider,

virtual reality is one of the fastest growing specialist

digital hardware markets; the virtual reality industry

is expected to be worth $2.8 billion by 2020. Although

to date it has been predominantly associated with

the gaming industry, many are now realizing virtual


reality’s potential in industries such

as e-commerce and real estate.

Since the human brain is designed to perceive a

three-dimensional space, virtual reality is pro-

viding the means to bridge the visual divide of

man-machine interfaces.

So, how does it work? By wearing a virtual reality headset, house-hunt-

ers are able to get a detailed 3D representation of

a property, with an accurate perception of scale

and depth. The virtual visitors will be able to tour

a property, ‘walking’ into each room, inspecting

every corner, almost as if in a video game. In this

case, the house-hunter becomes the protagonist

rather than the spectator. The beauty of this tool is

that the software enables its users to explore ev-

ery detail of a property, from the colour of the sofa

to the numbers of stairs up to the second storey.

What does this mean for the real estate? In the near future, house-hunters and investors

will be able to get a detailed view of a property lo-

cated on the other side of the world. Not only can

this be done from their own homes, but it saves

both money and time. This is not all: virtual reality

can also help land surveyors and civil engineers to

plan new urban projects. By providing a realistic

representation of buildings’ height and width as

well as possible transportation links, virtual reality

helps developers and contractors to improve a

city’s infrastructure in a shorter time scale.

This technology will be extremely useful for

fast-developing cities such as Colombo and Kandy.

It will allow city planners to experience the final

outlook of a city, test its livability and secure a

better urban development.

The real estate industry is now beginning to em-

brace the possibilities that new technology has to

offer. As new, innovative products hit the market,

there are exciting times ahead for real estate.

Brought to you by:

Heron Real Estate


MANSION BEYOND THE GATE

Opulence and luxury go hand in hand at this stunning property in Kelaniya, de-signed by architect Indika Samarasinghe.

As you turn into Waragoda Road, you are greeted

by greenery; a well-maintained trail of plants line

the curbs, which lead to the gates of this gorgeous

mansion. Once the dual-gated gateway opens, you

have access to an 11,100 square foot residence. The

property is situated on a 76-perch plot of land, with

turf grass and mango trees along the west parapet

wall. As the gates in the front open up, spacious

parking for at least four vehicles can be seen.

On entering the house, you will notice the use of teak

in the beautiful interior design. You will be welcomed

by the dominating nine-foot-tall, 11.5-inch-thick

Burmese teak doors, before you arrive at the family

living room opposite the entrance. One of the most

noticeable elements when entering the property is

the abundance of natural light that floods in. The

pristine white walls enhance the brightness of the

space, making it feel spacious, and more welcom-

ing. The entire house has been designed with this in

mind; the reception and dining rooms on the ground

floor are open plan, without doors, to open up the

space and allow the natural light to flood in.

When building the house, the architect has really

focused on function. The home office, for example,

has two entrances, one from within the house, and

the other through a separate entrance which allows

you to conduct business meetings more profession-

ally. As you walk past the home office, the corridor

connects to a reception on the left with a view of the

garden; to the right is a three-step staircase to the

elevated dining room.

FEATURED PROPERTY

HERONREAL ESTATE


The dining room connects to the rear of the house,

where you can find a kitchen, pantry, storeroom,

maid’s quarters and the driver’s room with a toilet.

This masterfully designed home, made sure that

even the maid’s and driver’s quarters had top of the

range fixtures and an overhead shower.

Passing the dining room, you will notice a doorway to

the living room at the very end. Here you can enjoy

a view of the garden, where there is also room for a

swimming pool to be installed. After all, what more

could you want than to start your day with a dip in

the pool?

As you reach the first floor, an enormous living area

welcomes you. From the 4,000 square foot balcony,

which surrounds the house, you can enjoy a breath-

taking view of the garden and the green fields to the

north of the house.

The first floor has four large bedrooms, all en- suite

and there is still enough space for a gym, drying deck

and a laundry area. There is a spare room that can

be transformed into a guest room, cinema room or a

recreational room to relax with family and friends.

The master bedroom contains an elegantly-designed

walk-in wardrobe, dressing area and en-suite bath-

room. All bathrooms in the house use German man-

ufactured fixtures, while the master bedroom boasts

a second shower, with a view of the sky. This sky-

view shower was built to allow the user to feel at one

with nature, in a calm and serene environment.

The garden, similarly to the house, is open to

customization, should the buyer want to make any

personal requests. Aside from turf grass and mango

trees, there is room in the sizeable garden for the

buyer to install a swimming pool, barbecue pit, or

badminton court. The steps at the far end of the

garden lead to a secluded garden area - the perfect

location to host evening barbecue parties.

The convenience of the house does not end there.

The mansion has a rear entrance with another roller

shutter gate, which can accommodate parking for

yet more vehicles.

Despite the sheer enormity of the property, each

room flows into the next. By cleverly working with

the space, light and privacy of the land, the architect

has succeeded in creating an eye-catching yet com-

fortable and convenient home for luxury living.

For more information contact

Sandy: 0718585518

Manil: 0779146136


INVE

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Interview with:

Sanjay Kathuria, CFADirector- Corporate Strategy,

Business Development, Investor

Relations at Sanda Lands

What is the Sandal Lands project?

Sandal Lands is subsidiary of Assotech, a renowned

Indian realty developer, which will develop a project

consisting of approx 200 residential apartments

over 20 floors, located in Colombo. The aim of the

development is to offer a luxury product to the

middle income group, with prices ranging from 25

to 50 million LKR. Construction will start in 2016 and

will take approximately three years to be completed,

with units sales starting from 2017.

Why did Assotech choose to invest in Sri Lanka?

Aside from the obvious geographical proximity, Sri

Lanka is demographically similar to India and most

importantly, there are strong bilateral agreements

for foreign investors. Attractive tax incentives given

by the government and the willingness to attract

capital definitely has encouraged us to invest in Sri

Lanka

We are firm believers that the country is experi-

encing positive and fast development; as recently

as 2013, the international workers’ remittance was

approximately USD 6.3 billion, which gives us con-

fidence that people currently working abroad are

willing to return to Sri Lanka. Likewise, in Sri Lanka,

people are highly educated and the English language

is widely spoken; as a result, we are positive that

many IT companies will settle their offices here soon.

When did you enter the market and has it

changed since ?

We first invested in Sri Lanka in December 2014, but

then, as was the case with many international inves-

tors, we were forced to hesitate for a long time due


to the unstable political situation. In 2015, we waited

for two sets of elections, to have a clearer picture of

what would happen within the country. It was a lost

year for many, but luckily the situation is now stable

and the trust of investors is getting stronger.

What are the main challenges when investing in

Sri Lanka and how do you think the government

can overcome these?

Currency risk and governmental decision-making

are certainly the major challenges when investing in

Sri Lanka, which now seems to be settling. Since the

country is opening up and promoting foreign direct

investment, this will encourage more investors to

come to Sri Lanka. This will also reduce the number

of well-educated Sri Lankans leaving the country to

search for opportunities elsewhere. In return, this

should help to stabilise the local currency.

One thing that the government could do to improve

the investment environment is to clarify the roles

of different authorities. As well as the Urban Devel-

opment Authority, the new government has also

introduced the Ministry of Megapolis. The roles,

responsibilities and power of each authority must

now be outlined in a clear way.

What is the future outlook for Sri Lanka?

The future seems more than positive; Sri Lanka has

a young population and high number of women

working, which shows people’s empowerment within

the country.

However, Sri Lanka has not seen the highest number

of developments in terms of apartments for the mid-

dle income group; everyone seems to be focusing

on the luxury market, which is quite narrow, leaving

a large segment of the market underserved. With a

population of 20 million people, the country will cer-

tainly see demand for affordable apartments in the

coming years. Equally, the government should also

control the loans on land to avoid potential property

bubbles.

Keeping our first step in 2010, we have come this far with the trust and appreciation of our clients giving

them the best place on earth where they make themselves comfortable. Being in the industry for 5

years, we have managed to satisfy all our clients by keeping our word and providing them the property

they require at the correct time. Our portfolio includes commercial and residential property, i.e.,

Apartments, Houses, Luxury houses, Office space etc. for sale or on rent basis. The locations that we

cover include: Colombo 1,2,3,4,5,6,7,8,9,10, Nawala,Rajagiriya,Pelawatta, Baththaramulla area.

Australian Property Investments with Dwellings Group

Dwellings Group is one of the leading property development and marketing companies based out of Melbourne,

Australia. Founded by 3 Sri Lankan entrepreneurs, Company assists local and overseas investors to create wealth

using Australian investment properties and property development projects. Dwellings Group has over 2000 +

properties all over Australia to cater to any investment need by their global clientele.

Dwellings Group is truly a ONE-STOP-SHOP for all property investment needs. Company takes care of the end to

end property investment process as follows:

• Choose a property to suit client requirements

• Obtain finance up to 65% of the property value from Australian banks at 4.8%

• Dedicated Australian lawyers to take care of property purchase

• Construction updates on a bi-weekly basis via an online portal

• Rent out the property for the investors

• Ongoing property management services and re-sales

Having won the Regional Brand Excellence Award in 2015 by Sri Lanka Institute of Marketing, Dwellings Group has

assisted hundreds of Sri Lankan individuals and corporates to invest in Australian Real Estate and repatriate the

returns back to Sri Lanka.

For further details, please visit: www.dwellingsgroup.com.au


LOCAL PEARLS: FLAMINGO HOUSE

Stefan Andre JoachimCo-owner and interior designer

of Flamingo House

The co-owner and interior designer of Flamingo House (the other partners are Natalie Jayasuriya and Sheran De Fonse-ka), Mr. Stefan Andre Joachim, based the design of his recently opened restaurant on the book that he has been writing for the past nine years. After carefully look-ing around, you will notice the synopsis of the tale written on each table mat. The book itself is a heartbreaking tale of the forbid-

den love between a poor Sri Lankan woman and a

wealthy Englishman in 1822.

The restaurant, located in Colombo 7, is a reincar-

nation of different elements of the book; every inch

of the property has a direct connection to the love

story.

The drinks and the food served are those described

in several passages of the book, which were enjoyed

by the couple when travelling to England by steam

boat.

According to the story, when relocating from England

to the green hills of Sri Lanka, the wealthy English-

man decided to construct a house resembling his

own property, virtually transporting each element

and feature to his new home.

In his new Sri Lankan home, the English man can-

not help but notice the beauty of the fruit vendor’s

daughter, Satyawathi. The man tries to approach

Satyawathi several times and after a long resistance

she finally gives in to his attention and kind gestures.

The house in the hills becomes their love nest, where

they secretly fall in love, away from the eyes of the

local people.

Paintings displayed in the restaurant capture key

parts of the book, such as the moment the Sri

Lankan woman dreams about meeting her deceased

father at midnight next to the lake with a pink flamin-

go.


Another piece of the story is depicted in one of the

internal rooms. Satyawathi loved her father very

much; although he was a poor fisherman, in her eyes

he was a very prosperous man. Her image of him as

a wealthy man is depicted as a big portrait within the

restaurant.

The birdcages host flowers which are hanging down

from the restaurant’s ceiling, are the same as those

beloved by Shatiwati, who loved birds but did not

want to capture them in cages and thus put flowers.

The colours of the walls are those in vogue during

the 19th Century, and each wall has a print, which

cannot be found anywhere else in the world.

The outside portico is filled with coffee tables made

out of old travel cases, to represent the protago-

nists’ love for travelling. It is during one their trips

that Satyawathi tragically dies, leaving her lover dev-

astated and heartbroken. Following the unfortunate

event, he shuts himself away in his Sri Lankan house

and keeps having the same dream that Satyawati

had about her father, including Satyawathi herself

and for this reason he decides to rename his proper-

ty “Flamingo House”.

When asked to name the style of the house, Stefan,

laughing, answers: “Eclectic Post-Colonial Madness.”

According to the owner, there is no formal name to

describe the interior style of this individual place and

he is not a supporter of structured ideas and conven-

tional schemes. In his opinion, the idea of the restau-

rant is to give the customers a distinctive experience,

where they can discover something new about the

place, and its story, with each visit. Every part of the

restaurant is unique, collected from different places

during the course of Stefan’s life; no piece of furni-

ture is the same as another.

The end of the love story, which blends east and

west, will only be disclosed next year; to find out

more about the story, visit the restaurant, experi-

ence the magical atmosphere, and enjoy delicious

food!


ARCHITECTURAL SENSATIONS IN COLOMBO

When walking through Colombo, it is very easy to stumble across beautiful architecture. The city is filled with stunning examples, from private residences to commercial spaces. Lamudi Sri Lan-ka spoke with architect Philip Weeraratne from PWA Architects to explore just some of his recent projects.

The first one is a private residence situated in

Colombo 07, a prime residential area in Sri Lanka.

The property was conceptualised to incorporate

all the essential elements of a house in the tropics.

The building is located at the edge of a plot of land,

to create the maximum garden space possible.

The impressive garden space can be enjoyed from

a wide veranda at ground level and an equally

sizeable balcony on the upper level. The veranda is

made with cut and polished cement, incorporated

with sand and sand-colored pigment, to create

an earthy texture to the floor. This is one of the

factors which sets vernacular Asian architecture (a

category of architecture that reflects local tradi-

tions) apart from its western counterparts. The

Guest Writer

Philip WeeraratneLead Architect / Interior

Designer at PWA Architects


materials used for this residence have been kept

as simple and uncomplicated as possible, with

predominantly natural colours used.

Timber was used for the doors, windows and bal-

cony rails; this provided a contrast between the

warmth of the timber, and the coolness of the ce-

ment finishes. White, rough plastered brick walls

and clay roof tiles provided colour and balance to

the external appearance.

As the dimensions of the property resulted in a

rather large built mass, several strategies were

used to visually break the house into smaller

components. The roof, for example, was de-

signed as two separate structures so the build-

ing was effectively divided in two. The simple

pitched roof and hipped roof form the major

components of the roof structure; these join via

a small portion of roof slab. Another tactic was to

emphasise the horizontal lines of the building by

creating a stepped effect to separate the lower

and upper levels, and thereby breaking the mass.

All the spaces have cross ventilation due to the

strategic positioning of doors and windows

as well as louvered shutters, which have been

generously installed. Deep eaves were created

within the roof to provide adequate protection

from the harsh sunlight and monsoon rains. The

architecture of the property creates a contempo-

rary feel, well-prepared for tropical living.

Crown Salon and SPAWhen asked about challenging projects, Mr. Phil-

ip focuses on a hair-and-beauty project under-

taken in 2011.

The salon and spa is located in Park Street,

Colombo 2. Prior to renovation, the space was an

old, abandoned, colonial-style warehouse.

The building had intricate and old details which

the architects were eager to preserve; while this

was a painstaking process, these were renovat-

ed, repaired and restored. Restructuring took

careful planning, as each detail had to match the

period of the building, while creating a function-

al, modern, and energy-efficient space.


The 6000 square foot building was linear and the

spaces could not flow in a conventional form, which

caused a challenge for the architect. To improve

this a corridor needed to run the entire length of

the building to connect one space to the other. The

architect designed a corridor with large openings to

allow natural light into the space, and created fea-

tures such as oversized skirting to direct light onto

textured walls. This became a challenging exercise

in how to make an ordinary space extraordinary.

Outside, an old wall was torn down and a driveway

created with a grass-lined front and paving to com-

plement the design of the building. Flags on spe-

cially-designed flagpoles and brackets were used to

create an eye-catching feature for the front façade.

Special attention was paid to conceal LED lighting to

illuminate the old moldings and enhance the proper-

ty’s unique and elegant design.

When visitors enter the reception area, they are

greeted by three stunning, custom-designed chan-

deliers. Dark panels are used to separate the spaces,

creating private areas within the salon for the hair-

dressers.

Different types of lighting are used throughout, to

create a functional yet unique atmosphere. These in-

clude: niches in the ceilings, carefully placed uplight-

ing, downlighting for functional areas and task- and

spot-lighting. The built-in furniture has been specif-

ically designed, proportioned and spaced to make

visitors feel comfortable and welcome. The pedicure

area has a unique design; the decor boasts multiple

textures and shades of white, with sculptural ceiling

features, white planters with white pebbles and a

double height, white sheer curtain.

The spa treatment rooms are elegant and function-

al; the design includes unusual shades of textured

fabric and wallpaper to create a calm and soothing

atmosphere.

The property highlights PWA architect’s design credo

of paying specific attention to detail. The compa-

ny’s team of talented and hardworking architects

and interior designers create unique spaces. The

finished results emphasise the company’s desire to

go beyond what clients expect, to get as near to per-

fection in design as possible. The ultimate aim is to

meet objectives and exceed expectations by creating

distinctive and interesting spaces.

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NArchitect | Director :

Vinuri EthapaneAtelier Peet Architects (Pvt) Ltd

Minimalism is a modern trend for archi-tecture globally, with buildings across the world embracing a basic design. However, this has not yet been reflected in Sri Lanka’s local real estate, according to the architect Vinuri Ethapane. To find out more about local architectural trends,

Lamudi Sri Lanka spoke to young architects Vinuri

Ethapane and Peshali Perera, directors of Atelier

Peet Architects (Pvt) Ltd located in No 101/1B Galle

Road Mount Lavinia.

Architectural trends in Sri Lanka have been evolving

since property became more than a basic need for

shelter. With the nation’s real estate market booming

and Colombo becoming more urbanised, architects

are now required to work in and around tight urban

spaces; to make these spaces feel bigger and more

inviting, architects today are creating open-plan

concepts and using lightweight materials.

While trends are constantly changing, particularly

as materials, technologies, and designs advance,

industry professionals believe minimalism and the

use of more sustainable materials could gain more

attention in the near future.

Through creating simple and elegant designs, as

its name suggests, minimalism stands out among

other trends. According to Vinuri “Minimalism in

architecture is the practice of giving emphasis to the

Guest Writers:

Architect | Director :

Peshali PereraAtelier Peet Architects (Pvt) Ltd


basic forms of the structure. Ornate decoration and

details are removed and the form of the pure struc-

ture is highlighted in the most simple and elegant

manner. Minimalist architecture focuses on straight

lines and highlights the pure lines and planes that

determine them.”

The aim of this design style is to create a stress-

free, uncluttered living environment, to improve the

function of the space. Minimalism moves away from

heavy detailing and intricate processes; as a result,

this simplifies both the construction of the property

and the daily maintenance of the house.

To properly create a minimalistic property, the

architecture and interior design should go hand in

hand. Therefore, the interior should include only

what is necessary, removing any extra details that

are not essential to everyday comfort. The concept

of a minimalist interior design is defined by simplic-

ity; therefore, neutral colours, and a ‘less is more’

approach is encouraged.

As part of the minimalistic architectural history in

Sri Lanka, Atelier Peet Architects (Pvt) Ltd designed

“The Urban Envelope” in Kotahena. The formation

comprises two strong outer envelopes, which create

the shell of the structure, and two cubes, joined to-

gether by the integral central courtyard. The centre

courtyard allows an abundance of light to enter the

property, while improving ventilation into the home.

The design of the house itself uses clean straight

lines and simple detailing to highlight the structure

and showcase the building’s form.

In recent years, the Sri Lankan real estate market

has seen growth in the number of luxury apart-

ments, condominiums and penthouses. These

commonly focus on more intricate designs, rather

than a minimalist approach. However, according

to the directors of Atelier Peet Architects (Pvt) Ltd,

minimalism is expected to be the next big trend for

architects designing residential real estate, and in

particular stand-alone properties.


REAL ESTATE, COMPETITIVE ADVANTAGE

AND BUSINESSGuest writer:

Prathap KaluthanthriSenior Lecturer at the Department of Estate

Management and Valuation at the University

of Sri Jayewardenepura

What is Corporate Real Estate?Corporate Real Estate (CRE) is a property held by

an organization for its business purposes. Nowa-

days, organizations give marginal emphasis on real

estate and its management, underestimating the

strategic value of this asset. What managers are

failing to understand is that in today’s competitive

environment, strategically manage CRE can help

organizations to achieve competitive advantage

over its rivals.

Corporate Real Estate StrategyCompetitive advantage is the organization’s

strengths that outperform its rivals and in the re-

cent past, the strategic importance of CRE has been

recognized as a resource for competitive advantage

in a dynamic business environment. However, it

seems that the role of real estate is mostly ignored

by top managers, the main reason being the lack of

tools for performance measurement of real estate.

Additionally, performance measurement is difficult

because real estate performances are not directly

evident in the financial output of the organization.

Most of the time, the real estate performance of

an organization is reflected in the performance of

other functional units. For example costs incurred

on the interior design and improvement of the

physical quality of the workplace contribute to HR

performance and conveniences in the physical en-

vironment of a production plant and uninterrupted

maintenance services will increase the productivity

of the manufacturing section. Also, the real estate

cost can involve innovative architectural designs,

color patterns, architectural symbols of the build-

ing and the location advantage of the organization

contributing to the branding strategy of the organi-

zation. Therefore, the real estate costs of arranging

convenient back and front office, maintenance of

yards, building design and interior decorations are

reflected in the success of the main functional areas

of an organization.

The CRE department is always identified as a cost

center to the organization and not as the profit.

However, if organizations are in a position to under-

stand the indirect support of the CRE department

to main centers, the impact of the CRE will definite-

ly become a profit center and lead to a competitive

advantage.

Here are the five most populr CRE strategies for

competitive advantage:


Reduce cost Focus on cost reduction of: occupancy cost per

square foot, occupancy cost per seat, occupancy

cost per employee, occupancy cost per one rupee

revenue, percentage of the space occupied and cost

of underutilized space. The cost reduction of these

criteria can add value to the overall performance of

the organization.

Increase FlexibilityAn organization’s real estate needs to support the

volatility of the business environment. Once the

flexibility of the real estate increases, the

organization can readily be adapted

to multiple uses. Possible tools

are length of lease agreement,

percentage of virtual and

flexible workplace. Flexibility

on CRE helps organizations

to better react to adverse

economic condition com-

pared to its rivals.

Promote Marketing and SalesCRE can be used as branding strat-

egy.: head and branch offices can be

designed according to the marketing theme. It may

be physical institutional advertising or a convenient

environment for customers to interact with com-

pany’s product/service offering. Possible tools are

environmentally sustainable buildings which will

help to promote a green image of the organization.

Increase Employee SatisfactionCRE recognize that physical environment is an

important element of job satisfaction. For instance

the physical convenience of the organization can

contribute to the overall productivity of the organi-

zation.

Thus tools like workspace size, quality of the indoor

environment, quality of facilities like lighting, tem-

perature, and noise can be measured by standards

stipulated by the best performing organizations.

Good standards encourage to attract and retain,

the best HR and ultimately contribute to the cre-

ation of a competitive advantage.

Increase value of the AssetThe value of the asset increases with the time-

ly decision of purchase and sale of real estate,

identification of redevelopment point of

obsolete properties and insights into

real estate market. Thus, factors

such as building audit, real

estate return on equity, fair

value versus book value

of a property, space per

revenue generation, can

all be used as tools for

competitive advantage by

organizations.

Today businesses strive to

improve their competitive position

in dynamic business environments. One

possible way to face this competition is to use

nontraditional functional areas for competitive

advantage which ultimately helps to add value to

business organization. Any organization which

owns CRE can assess its competitive position in the

business environment by analysing how far they

use their real estate for this task. In conclusion,

strategic management of the CRE of an organiza-

tion is extremely important for non-real estate-fo-

cused organizations. This ensures sustainable

competitive advantage, as with other mainstream

resources of the corporation.

“CRE can be used as branding strategy: head and branch offices, can be designed according

to the marketing theme.

Interview with:

Janakie EdirisingheSenior Lecturer at the Department of Estate

Management and Valuation at the University

of Sri Jayewardenepura


What is a sustainable development?

Sustainable development means “development that

meets the needs of the present without compromis-

ing the ability of future generations to meet their

own needs”, (World Commission on Environment

and Development report, 1987).

A building is considered sustainable if its charac-

teristics minimize the consumption of resources

(especially the non-renewable) and waste generation

throughout its life cycle, ensuring environment pres-

ervation for future generations.

Are sustainable properties becoming popular in

Sri Lanka?

The concept of sustainable properties or environ-

mentally friendly properties is not new to Sri Lanka.

The traditional building technology practiced in the

ancient rural areas is totally in line with this concept.

The materials that our ancestors used, the building

technology and the site selection all these were

made with a sense of environmental considerations.

In the modern context this has become a popular-

ized concept in the construction industry in Sri Lanka

due to several reasons such as resources depletion,

human health issues and growing interest in sustain-

ability.

Are there cost saving advantages for occupiers

and developers of sustainable buildings?

Ideally sustainable buildings should consume fewer

resources especially in terms of materials used for

construction as well as energy requirements in the

occupation. However, environmentally friendly ma-

terials that do not reduce the resource base of the

environment are hard to find or not popularized.

In some cases the cost of green buildings is higher

than normal buildings, I believe that it is too early to

come to such a conclusion since there are still many

things to be developed as well as research to be

made in the field of green constructions technology

and green real estate.

What are the barriers for sustainable builidings

and how can we overcome them?

One of the main barriers is the lack of awareness of

the green building concept and its potential benefits

among the general public as well as the developers.

Additionally, the perceptions of the public and devel-

opers are that green buildings are expensive to build

and operate compared to traditional constructions.

Lastly, there are no governmental incentives for

green buildings.

These constraints can be successfully addressed

through several measures such as raise in aware-

SUSTAINABILITYIN REAL ESTATE


ness among the stakeholders, outline the necessary

guidelines for the construction of green buildings,

formulate incentive schemes for builders to promote

the concept as well as conduct research into the

applicability of the green building concept in local

contexts.

Are there any sustainable standards enforced by

law here in Sri Lanka?

Although the term “sustainable’’ is not widely used,

there are a few legislations indirectly addressing

some environmental standards for buildings. The

land use zoning and planning and building regula-

tions set up by the Urban Development Authority,

are some key legislations that enforce regulations

and standards related to some environmental as-

pects and human health which indirectly contribute

to the concept of sustainable buildings. But these

legislations do not cover all the aspects related to

the sustainability of the built environment.

Are there any incentives or promotional mea-

sures taken by relevant organizations?

Sri Lanka developed national programs like “Haritha”

(Green) Lanka and the declaration of National Tree

Planting Day to promote the green concept. Addi-

tionally, several steps have been taken to promote

green buildings: in 2010, the Green Building Coun-

cil of Sri Lanka was established as well as a new

construction rating system called GREENSL®. 2013

was the year of the first Green Building Awards in

Sri Lanka. Lastly, there are many government and

professional organizations committed to promoting

the concept.

In your opinion what is the future of sustainable

buildings here in Sri Lanka?

The growing consciousness of the public on envi-

ronmental issues demands more environmentally

friendly products. The rising demand for organic

food, herbal products and the willingness of peo-

ple to pay more for such products indicates on the

increasing interest in green products. This shift

in preference similarly affects the choice of living,

leisure and work place. To respond to this change

professionals in the construction industry in Sri Lan-

ka have been showing a keen interest in the green

concepts and practices. The integration of sustain-

able concepts in buildings has been popularised in

society as a result of awareness programmes carried

out by the Green Building Council of Sri Lanka. For

all these reasons it seems that developers are ready

to fulfill the demand of sustainable housing, thus the

future of sustainable buildings in Sri Lanka is very

favourable.


DESIGN: GOING BACK TO THE ROOTS

In recent years, the Sri Lankan design in-dustry has grown and expanded. While the country is perceived by some as de-veloping, the country’s design industry is considered by many to be on par with international industry players. The country is changing, economically, socially, and

culturally, and today Sri Lanka has the materials,

skills and resources to produce new, innovative and

unique design solutions.

Many underestimate the potential for developing

and using local materials. Instead of innovating, it

is common to follow the pack, and to opt for more

expensive, imported materials. Of course there are

times when there is a requirement for imported ma-

terials which cannot be sourced locally but it is more

important to consider the context and use materials

that are the most suitable.

During the sixties and seventies, the restrictive gov-

ernment policies made imports next to impossible;

Natalie PendigrastSenior interior designer at MICD

Associates

this forced many to turn to locally-sourced material

and products. Born both out of a need to make do

with what was available and a firm conviction in

the skills and talents of local artisans, renowned

Sri Lankan architect, Geoffrey Bawa, believed and

practiced in this principle as well. He collaborated

with the likes of Laki Senananayake, Ena de Silva

and Barbara Sansoni to produce a new awareness

of indigenous materials and crafts. Together, they

constantly challenged and pushed the boundaries of

traditional craft and design to create iconic spaces

and designs. The staircase at the Lighthouse Hotel,

the ceilings at Bentota Beach Hotel and the copper

roof of the parliament building are some of the time-

less designs that are testament to these incredible

Sri Lankan designers.

Today, imports are more readily available; however,

there are a number of advantages to using local-

ly-sourced items and indigenous materials. Apart

from the cost and availability, designers have the

ability to experiment, to invent and to manipulate


materials to create something new.

Cement and terrazzo are two examples of indige-

nous materials, easily available, that can be altered

to create different finishes. While some types of im-

ported marble and stone discolour in Sri Lanka’s hu-

mid, tropical climate, cement and terrazzo can mimic

the finish of most stones without this disadvantage.

Furthermore, these materials are less expensive.

There are a large variety of materials available in Sri

Lanka, from hard wood, copper and other metals, to

granite, clay and ceramics, tiles, and handicrafts like

batik and lacework. These can all be manipulated

and reinvented to suit each individual; this ensures a

unique design with each usage.

An additional benefit - using these materials sup-

ports the development of local skill and trade. These

materials do not need to be limited to the traditional

purposes they were created for. The dynamics of

these materials in a contemporary interior design

perspective are changing. They can be reinvent-

ed and applied as part of a contemporary design

setting. For example, cement, clay and ceramics, and

metals like copper and aluminum can be turned into

almost anything – timber, copper or aluminum wall

claddings, cement furniture, clay lamps and copper

chandeliers, just to name a few possibilities. The Sri

Lankan heritage of “dumbara weaving,” batik and

“beeralu” lace have been revamped, mostly within

the fashion industry, but also have potential in inte-

rior applications for upholstery, bedheads, furniture,

and ceiling and wall claddings. Jetwing Lighthouse,

Cinnamon Bay Bentota, Jetwing Yala and Centara

Ceysands Bentota are some examples of where

these materials have been reinvented and used in a

contemporary setting.

With the materials and skills available, the Sri Lankan

design industry has the opportunity at its fingertips

to be able to innovate, re-invent, experiment, and

evolve with a bold Sri Lankan identity. It is what

makes the design industry in Sri Lanka so exciting

– the ability to reinvent the wheel without having to

look too far for the inspiration to do it.


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