Housing Market in Metropolitan Colombo: New Trends

Abstract

The study conducted in the Colombo Metropolitan Region, addresses to the emerging nexus between public and private sectors in urban housing, and market forces. The commercialization of private sector build housing has been on the increase builders in the market, where the state has incurred to its dwindling resources and infrastructure. The study reveals that the rising demand especially among middle and upper income groups for apartments in private housing schemes, along with multiple amenities. This has resulted in a steep rise in land prices. Also private housing is mainly tapping the middle and upper middle classes, but not the lower middle and the poor. These categories in the housing market are mainly served through the state funded subsidized housing schemes. Further, the researcher has shown how the banking facilities for housing loans have further enhanced the interest of people in private housing, creating a big boost to the housing market. The whole process has led to the emergence of urban social classes very distinct from one another and drawing an identity from the housing structures.

Analysis of the current housing market in Colombo metro region to enhance the prospective consumer satisfaction

“…Location is a mandatory factor that the consumer considers due to the neighbourhood surrounding, schools, employment location, shopping, and access to transport. According to Niriellage (2011), growth of a city is measured equally by the growth of population and new buildings constructed. Due to the rapid urbanization and frequent change in the economy, people cannot achieve their housing requirements.…”

“…Furthermore, Niriellage (2011) has elaborate that the government has a massive responsibility to develop the housing market for the nation. Not only the government, both public and private stakeholders should play an important role to fulfil the requirement mentioned above.…”

“…Housing is an essential element of social development, not only providing shelter and space but also leading to other material and social resources. Mainly, it impacts consumption patterns and household incomes and the future expectations of consumers (Niriellage, 2011). According to Nastaran and Ranaei (2010) housing has been an essential human necessity throughout history.…”

“…Housing is considered as a normal good, and it denotes if the incomes of the household rise, the household will tend to purchase a more expensive house comprised of more facilities than the prior residence (Waddell, 2000). Niriellage (2011) expressed that the Sri Lankan government participates in taxation, expenditure, regulation amending to capital market gain while improving housing facilities for the low-income households. Housing price is impacted due to public policy law and regulations, and the government has several building codes, housing codes and zoning ordinances as main determinants of house costs (McDonald, 2012).…”

“…Housing price is impacted due to public policy law and regulations, and the government has several building codes, housing codes and zoning ordinances as main determinants of house costs (McDonald, 2012). Niriellage (2011) further explained Banking facilities are highly influenced by people to gain interest in private housing, and it lifts the housing market to a high level.…”