Colombo land prices upsurge 11.4% led by residential land values
- CNL Reporter
- August 28, 2025
- News
- Colombo land prices
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The land prices in the red-hot Colombo district, measured by the Land Valuation Indicator (LVI), jumped 11.4 percent in the first half of 2025 from the same period in 2024.The growth in the prices nearly doubled from the growth seen in the first half of 2024, which came in at 6.9 percent over the same period in 2023.
The index reached 256.4 by the end of the first half of 2025, from 230.1 index points a year ago.Meanwhile, the prices measured semi-annually or the change between the second half of last year and the first half of this year too rose by 8.3 percent, the highest in recent times.
This reflects the continued growth in the land prices in the Colombo district since the country coming out of the worst of the economic crisis in 2022 and most of 2023.The sharp ascent in the land prices, especially in the Colombo district, reflects the demand for lands in the most bustling city in the country from the buyers across all sectors – residential, commercial and industrial – due to its improved infrastructure, logistics and living standards in the recent past.
Despite taking a dip or in fact a sharp slowing in the Colombo land prices during the height of the economic crisis, the prices started rising again since the beginning of 2024, with the declining interest rates started making their way through the economy, reinvigorating the property and real estate activity.
