Rent demand for luxury apartments

dinusha · January 9th, 2007, 10:22 PM

Hi all,

I have just joint the forum and read some good thread regarding the great developments that are occuring in Sri Lanka (especially colombo) at the moment. Colombo seems to be going through some construction boom.

Does anyone know what the rent demand is for these luxury apartments that are springing up in Colombo?

Has anyone got any past experience and would they be able to comment on the ROI - what the rent would be? And what type of people would be willing rent these.

Any info on this would be great! I am currently in the UK and is looking to invest in Sri Lanka

Thanks
Dinusha

phil.froelich · January 10th, 2007, 10:46 AM

well, renting demand is not so high because the people who really want to make money would enjoy their apartment and seel it after 3-5 years. However you do get quite a lot of people who are willing to rent out apartments. Rates for real nice ones are between 1,000- 5,000 USD per month (Penthouses would be like 5000 USD)... hope this helps a bit. However the bad thing is that luxury apartment prizes are between 100,000 USD- 1.25 mil. USD... Quite a lot for an apartment (1.25 mil. for the best penthouses around).

dinusha · January 10th, 2007, 12:12 PM

Thanks.

It seems that renting might not be the best option. Although 1000USD on a 100,000 USD property is good (12% return per year) plus the capital gains from the flat.

Buying land/property and making money on the capital gains is a better option than trying to rent it out.

dfdo · January 10th, 2007, 01:50 PM

Buying land /property is always a good investment. But there's something special about living in a high riser in Colombo (Kollpity) with all the facilities and lifestyles. Swimming pool, Gym, Recreation, Shopping, easy access to all hotels and other luxury highrises, great views from a luxury apartment on the higher levels.

Living in a house, even with lots of luxury isnt comparable.
Houses need more maintanance and security and can be boring at times.

On the other hand when you buy an apartment, it should be atleast a 350,000 or 400,000 USD apartment, as a 100,000 USD apartment would be small and is only good to let out to expats and foreigners for a short stay. You would be lucky to have someone pay you 1000 USD for a 100,000 USD apartment on a long contract.

The bigger apartments are easier to rent on a longer basis and nets in around 2500 USD. Here again its only the very rich or expats that would rent.

January 9th, 2007, 10:22 PM	#1
dinusha Registered User Join Date: Jan 2007 Posts: 5 Likes (Received): 0	Rent demand for luxury apartments Hi all, I have just joint the forum and read some good thread regarding the great developments that are occuring in Sri Lanka (especially colombo) at the moment. Colombo seems to be going through some construction boom. Does anyone know what the rent demand is for these luxury apartments that are springing up in Colombo? Has anyone got any past experience and would they be able to comment on the ROI - what the rent would be? And what type of people would be willing rent these. Any info on this would be great! I am currently in the UK and is looking to invest in Sri Lanka Thanks Dinusha

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode

January 10th, 2007, 10:46 AM	#2
phil.froelich Registered User Join Date: Dec 2006 Location: Colombo Posts: 1,789 Likes (Received): 0	well, renting demand is not so high because the people who really want to make money would enjoy their apartment and seel it after 3-5 years. However you do get quite a lot of people who are willing to rent out apartments. Rates for real nice ones are between 1,000- 5,000 USD per month (Penthouses would be like 5000 USD)... hope this helps a bit. However the bad thing is that luxury apartment prizes are between 100,000 USD- 1.25 mil. USD... Quite a lot for an apartment (1.25 mil. for the best penthouses around).

January 10th, 2007, 12:12 PM	#3
dinusha Registered User Join Date: Jan 2007 Posts: 5 Likes (Received): 0	Thanks. It seems that renting might not be the best option. Although 1000USD on a 100,000 USD property is good (12% return per year) plus the capital gains from the flat. Buying land/property and making money on the capital gains is a better option than trying to rent it out.

January 10th, 2007, 01:50 PM	#4
dfdo Registered User Join Date: Aug 2006 Posts: 314 Likes (Received): 0	Buying land /property is always a good investment. But there's something special about living in a high riser in Colombo (Kollpity) with all the facilities and lifestyles. Swimming pool, Gym, Recreation, Shopping, easy access to all hotels and other luxury highrises, great views from a luxury apartment on the higher levels. Living in a house, even with lots of luxury isnt comparable. Houses need more maintanance and security and can be boring at times. On the other hand when you buy an apartment, it should be atleast a 350,000 or 400,000 USD apartment, as a 100,000 USD apartment would be small and is only good to let out to expats and foreigners for a short stay. You would be lucky to have someone pay you 1000 USD for a 100,000 USD apartment on a long contract. The bigger apartments are easier to rent on a longer basis and nets in around 2500 USD. Here again its only the very rich or expats that would rent.