Its fashionable to have an address at one of Colombos plush apartments these days. The government has fuelled the apartment craze by pushing lending institutions to offer cheap credit to meet the shortage of houses.
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As a result, price to rent ratios for apartments are currently topping 21 times. The sky-high rents are expected to fizzle out with apartment prices falling by as much 20 percent in the medium term.
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rnExpats fuel apartment boomrn
rnSince the ceasefire began in December 2001, property market in Colombo has been propped up by demand created by Sri Lankans residing abroad and locals lured in by bright prospects for economic growth.rn
rnThe boom is especially visible in the residential apartment segment where the prices have seen a steep ascend and new developments mushrooming in every conceivable location in Colombo. rn
rnThe apartment complexes, which were first introduced in early 1990s, had a restrained growth phase till 2001, mainly due to unfavorable invest