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Land prices in outskirts soar as city growth stabilises: LPI 2025
January 26, 2026
|Daily FT
SRI Lanka's land market maintained solid growth in 2025, with the Colombo suburbs and Western Province districts emerging as key drivers, according to the latest Land Price Index (LPI) 2025 (updated) published by LankaPropertyWeb (LPW).
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The 2025 index shows that Colombo 1-15 recorded a 4% year-on-year (YoY) increase in average land prices per perch, reaching Rs. 12 million, while the Colombo suburban areas saw a stronger growth of 8%, averaging Rs. 2.3 million per perch.
In the broader Western Province, the Gampaha District average land price per perch rose 15% to Rs. 769,097, whereas the Kalutara District gained 10%, reaching Rs. 486,396
Suburban and emerging areas lead price growth
The report highlights a clear shift in investor interest towards suburbs and emerging towns offering strong development potential and affordability. The recent rise in land prices has been largely fuelled by new residential projects, ongoing land sales projects, and improvements in local infrastructure over the past few years.
Yakkala in Gampaha emerged as a standout performer, with prices rising 35% to Rs. 831,015 per perch, closely followed by Homagama in the Colombo suburbs at Rs. 916,912 per perch, reflecting a similar 35% increase, attracting investors looking for residential land for sale in these suburbs.
هذه القصة من طبعة January 26, 2026 من Daily FT.
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