Investing in property is a popular way for Sri Lankans to secure their financial future. When it comes to residential property investment in Sri Lanka, there are two main options – houses and apartments. Each of these has its advantages and disadvantages and should be carefully considered when making an investment decision.

Factors to consider when choosing between houses and units in Sri Lanka

When it comes to choosing between a house and a unit, there are several factors to consider. Location, cost of living, size of the property, and lifestyle are some of the key factors that can help you decide which one is best for you. Also, factors like affordability, location, demographic changes, market trends, regulatory limitations, and economic variables at play a part here.

Moreover, as a potential investor or a buyer, you should also consider whether you need extra space for storage, and parking or if you prefer the convenience of an apartment complex. It is important to weigh up all these factors before making your decision as they will have a significant impact on your lifestyle in the long run. With careful consideration and research, you can make sure that whatever property type you choose will suit your needs and budget perfectly.

Pros of investing in houses

  • If you own a house, you can design and adjust the structure as you prefer.
  • The value of land appreciates over time, so even if all you can afford is a regional or outer suburb house – it could be a wise choice in the longer run.
  • Historically, houses have more potential for capital growth as opposed to apartments.

Cons of investing in houses

  • If you own a house, all maintenance issues are your responsibility also you have to pay 100% of the insurance.
  • Houses are generally often more expensive to own than units in the same location.
  • The rental yield for a house may be lower than that for an apartment, depending on where it is built.
  • In most instances, the upkeep and maintenance of a house could be higher compared to a unit.

Pros of investing in apartments

  • Generally, the maintenance and care of an apartment building and its surroundings are the responsibility of all the owners, by way of an association.
  • With an apartment or unit, you’re paying the association fees instead of the general maintenance for your apartment.
  • Apartments offer an affordable entry point into the market, particularly for first-time home investors.
  • In most instances, apartments may be located in good high-yielding areas where the rental potential could be very high.
  • Your investment will be secure, as the demand for rental units is clearly on the rise, primarily due to the growing population around the urban centres.

Cons of investing in units

  • Some apartments are located in high-density areas, with little or no view, and experience a lot of noise.
  • If you own an apartment within a big apartment complex with several common areas, and facilities like a swimming pool, gym, and sauna, you will end up paying more in fees.


Houses vs units: Which is the better property investment in Sri Lanka? With the current property market being so competitive, it can be difficult to know for sure which option is best for you, as they depend on the individual circumstances of potential home buyers. Both houses and units have their advantages and disadvantages, so it is important to weigh up all the pros and cons before making your decision. Having said that if you are a recently married professional couple with a steady income, apartments is the winner.

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