10 perch parcel of land, called a “Parappu”, in the heart of Jaffna town, is estimated to cost between Rs. 7 million and Rs. 8 million, according to a real estate report titled “Emerging Jaffna” published jointly by KPMG and the Research Intelligence Unit. Further, the report also adds that this is up to 10 times higher than just five years ago.
However, the report also reveals that there are beach front properties in areas such as Kashuarina Karanagar where a “parappu” can still be acquired for between Rs. 200,000 and Rs. 300,000. On the other hand, the report also cautions that land prices in these areas will “witness a significant increase in the near future”.
Additionally noted; “Considering the leisure sector in the present context, it remains largely under-served. Our research also shows that thousands of local tourists visit ‘Nagadeepa’ but many find it difficult to find suitable accommodation. Jaffna presently has only one star-class hotel and a few more hotel properties are expected to commence operations shortly”.
Further, the report also states; “In terms of infrastructure, there are considered to be some supply side concerns with regard to the distribution of and access to electricity. Given that factories in particular need a reliable and high energy supply, this challenge could pose some barriers to investment”.
Meanwhile, this publication also predicts that the “residential property market is expected to grow by approximately ten percent per annum over the next five years. Where the beach front lands that are ideal for the leisure sector are concerned, the growth rates are likely to be in the higher double digit range.
The timing of this anticipated price increase is likely to hinge on the completion of the A9 Highway that is currently under construction, the development of the Jaffna airport for greater commercial use and the overall aspirations of the people being me”. (BT)