ROI of Building an Apartment Block in Sri Lanka
December 25, 2025
ROI of Building an Apartment Block in Sri Lanka
Key Takeaways:
- Cost: Rs. 8,500 per sq. ft. (Construction).
- Rent: Rs. 60,000 - 80,000 per unit (2 BR).
- Yield: 7% - 9% (Higher than residential Interest Rates).
Building a "Rent-Generating Asset" is better than building a dream home.
The Math (10 Perch Land)
- Land Cost: Rs. 20 Million (suburb).
- Building (4 Units x 800 sq. ft.): Rs. 28 Million.
- Total Investment: Rs. 48 Million.
The Return
- Monthly Rent: Rs. 70,000 x 4 = Rs. 280,000.
- Annual Income: Rs. 3.3 Million.
- ROI: 6.9% + Land Appreciation (10%).
Verdict: The smartest retirement plan is a 4-unit apartment block in Malabe or Kottawa.