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.