The nation’s leading property portal Lamudi.lk examines the remarkable nature of urbanisation in the country
As one of the fastest developing countries in Asia, Sri Lanka has seen a relatively slow phase of urbanisation while managing to achieve an exceptional level of human development, compared to other developing nations in the region.
Lamudi Lanka has taken interest in this phenomenon and has presented the facts and figures as a responsibility to inform the general public of our nation, allowing house hunters to make better investment decisions regarding to buying or renting houses in this New Year.
According to the United Nations report of world urbanization prospect 2014, the country’s current urban population is hovering at around 18%, making it an exceptional case among the developing nations in the region. According to the data, Sri Lanka’s urbanisation reached its highest value in 1970 (19.51%) and has seen a gradual decline ever since until it reached its lowest value of 15.04% in 2010. This in fact made Sri Lanka one of the least urbanized countries on earth. As noted by the UN report, the level of urbanisation in the world has seen a remarkable growth within the past few decades and as of 2014, it is estimated that around 54% or more than half of the world’s population will be living in an urban area. This is in stark contrast to Sri Lanka, which will have more than 80% of its population living in an un-urbanized zone while emerging as a country that achieved a High Human Development Index by 2014.
A number of factors for this trend that makes Sri Lanka an exception has been noted by Jupiter Capital Partners, a leading equity advisory and management firm in the country. According to the organisation, one of the most prominent is the availability of social infrastructure and lack of industrialisation seen in the country. “Most households have access to modern-day social services as well as basic healthcare, education and electricity (96%), reducing the need to migrate to an urban area. However, the high cost of properties in Sri Lanka’s urban regions similarly play a direct role. Due to the rise of construction costs and land prices, even the average value of a house in an urban area can exceed US $ 50,000 (above LKR 6,000,000 by 2014), resulting more than 90% being unable to afford a home in an urban area”.
As noted by the Managing Director of Lamudi.lk, Shohorab Ahamed: “The slow urbanization trend in Sri Lanka has given us a clear insight into what real-estate developers should focus within the next few years. For instance, luxury Apartments and Condominiums are highly important, but categories such as Single-family homes must also be given a prominent status in 2015. These are the most popular type among typical residential property hunters searching for a home in suburban areas of Sri Lanka.
As the country’s most innovative real estate platform, Lamudi endeavours to deliver the best, not only houses but also an assortment of other categories to the property hunters of our nation”.
