The latest analysis of property market data, released by the Research Intelligence Unit (RIUNIT) up to the third quarter of 2025, reveals that Area 05 (Colombo 5) provides the strongest performance across the city’s property market.
A key finding of this analysis is the robust recovery in Colombo apartment prices when measured in US dollars. While average house prices in Sri Lankan rupees have shown an upward trend even during the COVID-19 pandemic and economic crisis, a significant portion of that growth was driven by the sharp depreciation of the rupee in 2022.
The statement highlights that, particularly for international investors, measuring property market trends in rupees can be misleading. According to RIUNIT, rupee-based apartment prices increased despite the pandemic and economic challenges, but this rise is often considered a nominal increase due to the currency depreciation.
In contrast, dollar-based prices and those in other foreign currencies remained stable during periods of economic instability, now offering clear opportunities for investors.
The second notable finding of the analysis is that Colombo 05 has emerged as the leading area across all key indicators, including the number of new apartment projects, apartment price growth, and land value appreciation.
Compared with other zones in Colombo city, Colombo 05 consistently outperforms in every aspect.
Source: Hiru News
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