SriLankan Real Estate Industry - 2024 - Investment Opportunities in Sri Lanka - Happy Homes

Many tourists visiting Hikkaduwa and other parts of Sri Lanka are often intrigued about buying land and settling on this beautiful island by investing in the country’s real Estate. People from Canada and Europe often inquire about the investment capabilities in Sri Lanka. Would it be a profitable venture to invest in Sri Lanka?

Let’s start by looking at basis figures. The annual appreciation for real estate in Sri Lanka is at 8% and the Rental Yield is at 6% in 2024. So one can expect a fair ROI of 8% by investing in Sri Lanka’s real estate.

Understanding the Property Ownership Process for Investments in Sri Lanka’s Real Estate:

Buying Apartments:

People and foreigners can directly purchase apartments in Sri Lanka for Investments in Real Estate. The process is straightforward, similar to property transactions in Norway, Europe, and most parts of the world. Here’s how it works:

1. Find Your Property: Begin by searching for an apartment that suits your needs and budget. Happy Homes has a huge catalog of investment properties, including land, residential, and commercial properties for investing in Sri Lanka’s real estate.

Find properties here at Property or click on this link.

Explore different investment properties at Investment or click on this link.

If you need additional support, our team would be happy to get in touch with you for your queries.

2. Negotiate the Price: Once you find a property, negotiate the price with the seller.

3. Transfer of Ownership: After finalizing the price, the seller will transfer the property ownership to your name for investing in Sri Lanka’s real estate.

This process makes it easy for foreigners to own an apartment in Sri Lanka without complex regulations.

Buying Land:

The process of buying land to invest in Sri Lanka, with or without a house or villa, is slightly more complex than an apartment. Here’s a step-by-step guide for investing in Sri Lanka’s real estate.

1. Establish a Private Limited Company: Foreigners must set up a Private Limited Company (PLC) where a Sri Lankan partner owns 51% of the company, and the foreigner owns 49%.

2. Set Up a Holding Company: To safeguard your investment, establish a Holding Company wholly owned by you. This company will control the PLC through a 99-year lease.

3. Lease Agreement: The Holding Company signs a 99-year lease with the PLC, ensuring long-term control of the property.

4. Renewal: After 99 years, you can renew the lease for another 99 years, maintaining continuous ownership.

This structure, though initially seeming unusual, is a common practice in many South Asian countries like Thailand, Indonesia, and Malaysia. Happy Homes can help you navigate this process without complications for investing in Sri Lanka’s real estate.

Timeframe and Professional Assistance

The process of setting up a company and purchasing property typically takes 1-2 months, depending on legal aspects of Investments in Real Estate.. Happy Homes can assist you throughout this process, ensuring a smooth and secure transaction for investing in Sri Lanka’s real estate.

Government Initiatives and Investment Stability

The Sri Lankan government is making concerted efforts to attract foreign investors by simplifying the property purchase process and lowering taxes on purchasing and selling real estate to boost investing in Sri Lanka’s real estate. Additionally, owning property can provide foreigners with a business visa, making it easier to live and work in Sri Lanka.

To know more about the Government’s initiatives, read this article by the National Law Review.

Link : Click Here

Despite past challenges such as the tsunami, political crises, and the pandemic, real estate prices in Sri Lanka have remained stable or increased, indicating a resilient market for investing in Sri Lanka’s real estate. This stability makes investing in Sri Lankan real estate a promising opportunity for long-term financial gains.

The Appeal of Sri Lanka

Sri Lanka offers not only a lucrative investment opportunity but also a happy lifestyle. With its tropical climate, stunning landscapes, and rich cultural heritage, it’s a paradise for expatriates. Investing in investing in Sri Lanka’s real estate allows you to enjoy this beautiful island and, when it’s time to move on, sell your property for a profit.

Rising Land Prices in Colombo

Colombo's land prices are consistently on the rise, making it a robust investment opportunity. The Colombo District boasts the highest population density in Sri Lanka, with 3,512 people per square kilometer. The Western Province, home to 28 percent of the country's population, occupies just 6 percent of the island's total territory. This adds to the steadily rising land pricing in Colombo making it a suitable option for Investments in Sri Lanka’s real estate.

We have a separate blog on investing in Colombo. Read more about investing in Colombo here: Click here

Conclusion

Investing in Sri Lankan real estate is a smart move for Canadian and European investors seeking stable returns and lifestyle benefits. With direct apartment purchases, government incentives, and a growing market, Sri Lanka stands out as a prime investment destination. By understanding the local regulations and partnering with trustworthy locals, you can successfully navigate the investment process and enjoy the numerous benefits Sri Lanka has to offer.

Feel free to contact Happy Homes for more specific advice and to explore the real estate market in Sri Lanka. They can help you become familiar with available properties, prices, and the entire process of owning or renting property in this tropical paradise. If you’re looking for a link, Click here