Established in November 2016, Crystal Property Group (CPG) has quickly earned praise for its unique business model in Sri Lanka’s real estate market. CPG’s portfolio boasts luxury properties such as Crystal Sands, a 25-unit all-suite hotel, and The SIX, an exclusive development of six ultra-luxury villas.
In an interview with Echelon, CPG’s Executive Director and Chief Executive Reza Magdon Ismail, along with Chief Growth Officer Gavin Ramsay, discussed how the rise of Sri Lankan hospitality has bolstered their reputation and attracted discerning clients who value their commitment to high standards.
What’s your outlook for the property market in Sri Lanka over the next few years?
The outlook for Sri Lanka’s property market over the next few years is promising. Emerging from an economic crisis, the worst seems to be behind us. Real estate typically lags behind the broader economy, but we will soon enter an early growth stage, making it an attractive time for investors seeking capital appreciation and attractive valuations. Our focus on hospitality aligns with this trend. The recent peak season for the South Coast has been strong, and the hospitality industry is showing positive momentum. This growth presents significant opportunities, not just in urban residential and commercial sectors, but also in hospitality, where Sri Lanka’s potential for international growth and investment is substantial.
How is CPG placed to capitalize on emerging opportunities?
From a CPG perspective, we have a strong track record over the past five years of delivering international standard products, earning recognition and validation. We’ve developed two consecutive luxury properties: Crystal Sands, an all-suite 25-unit hotel in Hikkaduwa, and The SIX, a development of six ultra-luxury villas on the Weligama coast. Our 3rd development Digana by CPG located in the central hills of Kandy is currently under construction with a limited number of units available for sale. With Sri Lankan hospitality gaining renewed attention, we are well-positioned for future growth. Our established reputation allows potential clients to experience our high standards in hospitality. Our recent international venture in Maldives further validates our capabilities and growth potential. We aim to capitalize on emerging opportunities by leveraging our brand and proven delivery over the past five years.
What is CPG’s resort residence model?
CPG’s resort residence model is our core focus. We aim to elevate Sri Lankan hospitality and real estate by creating beautifully designed holiday homes that double as smart investments. These homes offer owners a unique opportunity to participate in Sri Lankan hospitality with the backing of a versatile developer in Crystal Property Group and our hotel brand The One Group of Hotels. Our goal is to provide fully serviced resorts with all the amenities and infrastructure expected from a top-tier destination. This model allows investors to enjoy a luxurious holiday home maintained to the highest standards while benefiting from the growth of Sri Lanka’s tourism industry.
Moving on, how have you managed to complete multiple projects in record time?
CPG has successfully navigated multiple crises in Sri Lanka over the past five years by executing projects with a unique approach. Unlike most developers who outsource, we have built an in-house team of expert project managers, engineers, design consultants, craftsmen, and quantity surveyors. This internal expertise has been crucial to our ability to deliver projects despite significant challenges, such as import restrictions and currency fluctuations.
Our team’s dedication to problem-solving and crisis management has enabled us to consistently meet international standards. For instance, our in-house procurement specialists work around the clock to source materials locally and maintain quality, despite import challenges. This integrated approach has made us the only developer in Sri Lanka to successfully deliver and manage resort residence projects, setting a new benchmark in the industry. The proof of our success lies in the quality of our completed projects, showcasing our resilience and commitment to excellence.
How do your projects impact foreign investment and tourism in Sri Lanka?
CPG’s impact on foreign investment is two-fold. First, our developments have successfully attracted foreign investors to acquire assets in Sri Lanka. Our projects, structured on a condo plan, allow easy access for foreign buyers with no restrictions. Crystal Sands, our first project, received strong interest from both the diaspora and international investors, demonstrating the market’s confidence in our brand and the opportunity Sri Lanka offers.
Secondly, our venture into the hospitality industry showcases our commitment to promoting Sri Lankan hospitality. Our development and hospitality teams work together to manage and market our properties, attracting more tourists and driving further investment. Despite being a young brand, our hospitality division has seen significant growth with additions of properties in Galle Fort, Mirissa and Kandy, and a total of 100 keys under management by The One Group of Hotels with other real estate owners continuously approaching us to manage their properties.
This validation highlights our success and potential in both real estate and hospitality, ensuring our investors are satisfied and confident in their investments with us.
How would an investor benefit from the resort?
Our resort residence model excels in management and service, beyond just design and delivery. We create homes with a resort mindset, ensuring exceptional hospitality and consistent standards. Unlike many international residences, our investors enjoy unrestricted usage, visiting their holiday homes anytime. Our clear management agreement outlines property care and revenue distribution. This model balances personal use with financial returns, catering to investors seeking both enjoyment and yield from their holiday homes. We offer a holistic product that combines top-notch service with robust financial and management frameworks, providing a seamless and rewarding investment experience.
(You can visit CPG’s latest Resort-Residence; Digana by CPG underway at www.diganacpg.com. For more, you can also visit the CPG website at www.cpg.lk and The One Group of Hotels’ website at www.theonegroupofhotels.com.)