The numbers that decide it - rental yields, occupancy, appreciation and the ownership rules and taxes for buying in Southern Province.
| Metric | Value | Notes |
|---|---|---|
| Tourist Arrivals | 2.36 million · 2025 | Record high, indicating strong demand for accommodation. |
| Occupancy Rate (Galle) | 44%+ · 2025 | Prime properties achieve higher rates, indicating strong rental potential. |
| Short-Term Rental Listings | 325+ · 2026 | High number of listings in areas like Hikkaduwa shows active rental market. |
| Metric | Value | Notes |
|---|---|---|
| Projected Annual Gross Rental Yield (Galle) | 8 to 10 percent · 2025 | Target for well-managed holiday rentals. |
| House Price Variation (12 months) | +12% · 2025 | Indicates strong capital appreciation potential. |
| Buyer | Permitted | Tenure | Conditions |
|---|---|---|---|
| Sri Lankan Citizen | Yes | Freehold | Unrestricted |
| Foreign National (lease) | Yes | Leasehold | Up to 99 years lease; no lease tax since 2016 |
| Foreign National (via company) | Conditional | Freehold (via company) | Sri Lankan company with 51%+ local shareholding |
Investment figures are directional market estimates, not guarantees - actual yields, rates and appreciation vary by property, operator and timing. Verify with a professional before investing.
NRIs and OCIs can freely buy residential and commercial property in India (not agricultural land), with purchase funds routed through NRE/NRO banking channels.
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