📈 Land Prices Surge in Outskirts as Colombo Growth Stabilizes – LPI 2025

The latest Land Price Index (LPI) for 2025 reveals a strategic shift in the real estate market, with suburban areas and the broader Western Province outperforming the capital's core. • Overall Growth Trends • Colombo 1–15: Average price rose 4% YoY to LKR 12 Mn per perch. • Colombo Suburbs: Increased 8% YoY, averaging LKR 2.3 Mn per perch. • Gampaha District: Recorded a significant 15% YoY increase to LKR 769,097. • Kalutara District: Gained 10% YoY, reaching LKR 486,396 per perch. • Top Performing Suburbs (YoY) • Yakkala & Homagama: Both surged by 35%, reaching LKR 831,015 and LKR 916,912 respectively. • Negombo: Up 35% to LKR 1.56 Mn. • Bandaragama: Grew 34% to LKR 545,533. • Piliyandala: Posted 30% growth to LKR 1.22 Mn. • Long-Term Appreciation (2020–2025) • Ingiriya: Led 5-year growth with a massive 322% increase. • Padukka: Rose 221% over the same period. • Ragama: Up 183%, highlighting the high returns in the construction & infrastructure linked corridors. • Market Outlook Investor interest is pivoting toward affordable, well-connected suburban belts driven by residential projects and infrastructure improvements, while central Colombo shows more restrained, stable growth.