The Challenges and future of the condominium development sector in Sri Lanka

Abstract

The condominium market in the recent past has recorded steady growth with little to impede its progress However, of late, there has been a sharp decline in condominium sales, as a result of which the condominium market is experiencing difficulties right now. Although the general prognostication for the Lankan economy is good in the post-war context, developers continue to face much difficulty in selling the units constructed. Hence, it is very important to investigate the reasons behind the drop in sales of condominium units as a means of uplifting the sector and meeting future challenges. Our study seeks to identify the factors that restrict the growth of the condominium market and the extent of the challenges that it faces. Our findings show that like many other markets, the condominium market too is adversely affected by the world economic recession. The study therefore attempted to analyze the impact of the global economic crisis on the condominium market. We carried out a SWOT analysis in order to examine the present state of the market and to forecast the future investment environment for the condominium market in Sri Lanka. The findings reveal that one of the key barriers to growth in this sector is delays in securing approvals from the relevant authorities. The results of the survey can be of use to those interested in seeing an improvement in the condominium market. The study also offers valuable guidance to property developers in their investment decisions and to potential buyers who plan to purchase a condominium in Sri Lanka in the near future.