






{"id":43974,"date":"2026-02-05T18:27:44","date_gmt":"2026-02-05T11:27:44","guid":{"rendered":"https:\/\/www.asiapropertyawards.com\/?p=43974"},"modified":"2026-03-05T11:51:03","modified_gmt":"2026-03-05T04:51:03","slug":"south-asias-property-markets-edge-back-from-the-brink","status":"publish","type":"post","link":"https:\/\/www.asiapropertyawards.com\/en\/south-asias-property-markets-edge-back-from-the-brink\/","title":{"rendered":"South Asia\u2019s property markets edge back from the brink"},"content":{"rendered":"<p>After years of turmoil\u2014from political upheavals to a pandemic and debt defaults\u2014South Asia\u2019s real estate sectors are stirring back to life, buoyed by reform and renewed investor confidence<\/p>\n<figure id=\"attachment_43975\" aria-describedby=\"caption-attachment-43975\" style=\"width: 2560px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"wp-image-43975 size-full\" src=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2026\/02\/shutterstock_2608005133-scaled.webp\" alt=\"\" width=\"2560\" height=\"1707\" srcset=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2026\/02\/shutterstock_2608005133-scaled.webp 2560w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2026\/02\/shutterstock_2608005133-400x267.webp 400w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2026\/02\/shutterstock_2608005133-600x400.webp 600w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2026\/02\/shutterstock_2608005133-768x512.webp 768w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2026\/02\/shutterstock_2608005133-1536x1024.webp 1536w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2026\/02\/shutterstock_2608005133-2048x1365.webp 2048w\" sizes=\"(max-width: 2560px) 100vw, 2560px\" \/><figcaption id=\"caption-attachment-43975\" class=\"wp-caption-text\">Colombo skyline. alonanola\/Shutterstock<\/figcaption><\/figure>\n<p>For a while, it seemed their hold on Sri Lankan politics would never break. For two decades, the Rajapaksa brothers, Mahinda and Gotabaya, ruled the South Asian island with their hands firmly on the levers of power. Then, in 2022, it all came crashing down.<\/p>\n<p>After a string of blunders and a tanking economy, protesters stormed Gotabaya\u2019s official residence and forced him to flee. No image captured the moment better than jubilant citizens splashing in his swimming pool while he escaped the country by plane.<\/p>\n<p>Relief swept through a population weary of corruption, mismanagement, and entitlement among the ruling elite. Yet the sense of victory was quickly tempered by crisis. Alongside an economic meltdown came political instability. Tourism had already collapsed during the pandemic, and prices of food and fuel soared as Russia\u2019s war in Ukraine upended global supply chains. A series of reckless policy decisions\u2014selling off foreign-exchange reserves to prop up the currency, borrowing heavily for grandiose infrastructure projects, and slashing taxes\u2014left the economy exposed and on the brink.<\/p>\n<p>The property sector was among the hardest hit. Investors ran short of cash, materials became expensive, and construction was stalled by Covid-era restrictions. The Colombo Land and Development Company, developer of Liberty Plaza mall, described the market as \u201cstatic as investors adopted a wait-and-watch mode,\u201d while the National Construction Association reported that two-thirds of projects were suspended due to high costs and fuel shortages.<\/p>\n<p><a href=\"https:\/\/www.asiapropertyawards.com\/en\/sri-lanka-and-the-middle-easts-top-real-estate-achievements-recognised-at-2025-propertyguru-asia-property-awards\/\" target=\"_blank\" rel=\"noopener\"><strong>Related: Sri Lanka and the Middle East\u2019s top real estate achievements recognised at 2025 PropertyGuru Asia Property Awards<\/strong><\/a><\/p>\n<p>\u201cDue to the pandemic and the present economic crisis, many contractors found it difficult to proceed because of import restrictions, inflation, foreign-exchange shortages, and transportation issues,\u201d noted a study by industry experts. \u201cInvestors are not willing to fund projects in this situation, which has become a huge issue for contractors and clients.\u201d<\/p>\n<p>By mid-2022, confidence had collapsed. \u201cBusiness confidence is probably at its lowest since I\u2019ve been in business,\u201d says Vish Govindasamy, chairman of the Ceylon Chamber of Commerce. \u201cIt\u2019s probably the most difficult time we have faced. But we are resilient.\u201d<\/p>\n<p>Stability began to return after former president Ranil Wickremesinghe secured an IMF bailout worth USD347 million, supported by Chinese debt-relief assurances. His administration embarked on a programme of structural reform\u2014reinstating the Pay-As-You-Earn tax system, raising VAT, privatising underperforming state enterprises, and allowing the rupee to float freely in early 2022.<\/p>\n<blockquote><p>Momentum is positive and demand is increasing. If interest rates remain stable, we can expect further development over the next year and beyond<\/p><\/blockquote>\n<p>According to Nirmal De Silva, CEO of Paramount Realty, those reforms have helped restore faith in the sector. \u201cThere is a degree of stability that has returned to the country,\u201d he says. \u201cWith interest rates staying low, we\u2019re seeing renewed demand for real estate.\u201d As of October, the Sri Lankan Central Bank\u2019s policy rate stood at 7.75%, the lowest in years.<\/p>\n<p>Colombo remains pricey and land-scarce, but secondary cities such as Kurunegala and Hiriketiya are seeing rising interest. \u201cPeople are once again looking at residential real estate and freehold land as investments,\u201d says De Silva. \u201cCompared with 18 months ago, momentum is positive and demand is increasing. If interest rates remain stable, we can expect further development over the next year and beyond.\u201d<\/p>\n<p>In 2024, the Rajapaksas attempted to re-enter politics, with Mahinda\u2019s son Namal contesting the presidency. He finished fourth\u2014a result widely seen as symbolic of a new era. \u201cThe economy will probably grow around 4% by the end of the year,\u201d says De Silva. \u201cI see good times ahead.\u201d<\/p>\n<figure id=\"attachment_43977\" aria-describedby=\"caption-attachment-43977\" style=\"width: 2560px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"wp-image-43977 size-full\" src=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2026\/02\/shutterstock_2451640367-scaled.webp\" alt=\"\" width=\"2560\" height=\"1440\" srcset=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2026\/02\/shutterstock_2451640367-scaled.webp 2560w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2026\/02\/shutterstock_2451640367-400x225.webp 400w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2026\/02\/shutterstock_2451640367-600x338.webp 600w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2026\/02\/shutterstock_2451640367-768x432.webp 768w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2026\/02\/shutterstock_2451640367-1536x864.webp 1536w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2026\/02\/shutterstock_2451640367-2048x1152.webp 2048w\" sizes=\"(max-width: 2560px) 100vw, 2560px\" \/><figcaption id=\"caption-attachment-43977\" class=\"wp-caption-text\">Mumbai&#8217;s modernising cityscape. Aanimesh\/Shutterstock<\/figcaption><\/figure>\n<p>Across the Palk Strait, a different kind of reset was underway. India\u2019s property market, sluggish for much of the last decade, has been regaining momentum since 2021. After the exuberant boom of 2008\u20132010, developers had vastly overestimated demand, particularly for luxury apartments in cities such as Mumbai, Bengaluru, and Pune. The result was a glut of unsold inventory, falling prices, and a wave of stalled projects.<\/p>\n<p>Between 2013 and 2023, growth slowed as the government introduced sweeping regulations to protect buyers and promote transparency. These reforms\u2014though crucial for long-term stability\u2014temporarily disrupted the sector as developers adjusted to stricter compliance and disclosure norms.<\/p>\n<p>The cooling period was dramatic. In Mumbai, high-end apartment sales fell by 25\u201330% between 2014 and 2017, according to Knight Frank, while nationwide new project launches declined from over 350,000 units in 2013 to roughly 200,000 by 2018, PropEquity data shows.<\/p>\n<p><a href=\"https:\/\/www.asiapropertyawards.com\/en\/sustaining-sri-lankas-real-estate-revival-colombos-growth-story-and-its-future\/\" target=\"_blank\" rel=\"noopener\"><strong>Related: Colombo&#8217;s growth story and its future<\/strong><\/a><\/p>\n<p>But housing markets are cyclical. \u201cThe new cycle started in 2021,\u201d says D. B. Mehta, president-elect of the Confederation of Real Estate Developers\u2019 Associations of India. \u201cI\u2019m 100% confident it will go until 2029. The sharpest and fastest growth usually comes at the end of the cycle, so I expect annual returns of around 15\u201318%.\u201d<\/p>\n<p>Ajai Kapoor, CEO of 360 Degrees Real Estate Services, agreed that the current phase looks promising. \u201cUnsold inventory across the top cities is broadly stable year-on-year at around 560,000 units, showing neither glut nor shortage,\u201d he says. \u201cDevelopers are selectively launching more high-value projects and acquiring new sites for the next few quarters.\u201d<\/p>\n<p>India\u2019s urban population is projected to hit 600 million by 2031, a demographic shift that underpins the market\u2019s resilience. Massive infrastructure projects such as the Delhi\u2013Mumbai and Surat\u2013Chennai expressways, along with metro expansions in Jaipur, Pune, Kolkata, and Bengaluru, are expected to open new corridors for housing and commercial development.<\/p>\n<p>With plans and reforms being enacted, the outlook for the industry in Sri Lanka and India looks promising. Premium and ready-to-move-in properties continue to perform especially well, buoyed by strong domestic demand and steady foreign investment. With the wider economy holding firm and consumer confidence improving, India\u2019s property market is firmly in recovery mode\u2014disciplined, transparent, and geared toward long-term sustainability.<\/p>\n<p><em>T<\/em><em>his article was originally published on\u00a0<a href=\"https:\/\/www.asiarealestatesummit.com\/newsroom\/\" target=\"_blank\" rel=\"noopener\">asiarealestatesummit.com<\/a>. Write to our editors at\u00a0<a href=\"mailto:propertyreport@propertyguru.com\" target=\"_blank\" rel=\"nofollow noopener\">propertyreport@propertyguru.com<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>After years of turmoil, South Asia\u2019s real estate sectors are stirring back to life, buoyed by reform and renewed investor confidence<\/p>\n","protected":false},"author":8,"featured_media":43975,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[81,97],"tags":[340,216,699,990,120],"class_list":["post-43974","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-in-depth","category-magazine","tag-bangladesh","tag-india","tag-maldives","tag-pakistan","tag-sri-lanka","news_country-india","news_country-sri-lanka","news_author-george-styllis"],"acf":[],"yoast_head":"<!-- This site is optimized with 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