Real Estate Market Advantages And Disadvantages

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1.1 BACKGROUND OF THE STUDY Urbanization and development of modern cities attract more investments to the city. Those Investments accelerate the entire country’s economy through the boost in real estate market. Therefore real estate markets play an important role in countries economy in terms of residential commercial and the industrial real estates. In economic standings, residential/housing sector usually constitutes the largest and key assert class in economy of a country. In the world, demand over residential sector has been growing day by day and therefore investment in residential sector brings in lucrative return with rising prices and that attract many into invest and buying housing instead of investing into other sectors. Similarly…show more content…
“The average sale price of 3 bedroom luxury apartment price has increased 26 million to 39 million from 1st quarter of 2012 to 1st quarter of 2017” (Kulamannage, 2015).“The land prices of Colombo (Colombo 1 to 10) has increased from Rs.250,000 to 2,250,000 per one (1) perch from 2012 to 2017 coupled high construction cost cause for the mentioned significant rise of selling and renting prices of luxury apartments in Colombo”(Real Estate Intelligence Unit, Markert Report ,2017). “Within the last eight months, three bedroom units OnThree20 complex are up by Rs8 million to Rs45 million. The rapid rise of prices in apartments is not limited to the CBD but spread to the suburbs like Rajagiriya, Homagama.” It’s estimated that apartment prices in Colombo and Rajagiriya, have been rising at an annual 12% to 15% over the last eight years and rental yields have topped 5% annually” (Kulamannage,…show more content…
Moreover since governments lands are also be allocated, granted and leased for similar luxury apartments and related investments it is important to see are those allocation decisions are healthy or not in the

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