Prime Group has been a key player in Sri Lanka’s real estate sector for three decades, evolving from a small startup into a major developer. Under the leadership of Co-founder and Chairman Brahmanage Premalal, the company has navigated economic shifts while focusing on financial discipline and project delivery.
Prime Group has built a reputation for reliability in a market where long-term investments require trust and stability. The company’s portfolio includes high-end projects like The Grand Colombo 07, One Tangle, and The Season Colombo 08, along with future key projects such as YOLO Kiribathgoda, J’Adore Negombo, and Venezia Negombo. Ongoing developments include The Colombo 7 and The Lake Drive – Golf Border.
Additionally, Prime Max provides long-term financing options that enable investors to build wealth through real estate with reduced upfront costs. Prime Group continues to adapt as market conditions evolve, leveraging its experience to navigate challenges and expand its presence in the sector.
Reflecting on the last 30 years, how has Prime Group evolved?
Prime Group started with a small team and a vision, “Mihikathin Hondama Thenak” (Committed to Creating a Better Place on Earth), to create better living spaces. The journey has been shaped by economic and political challenges, including the civil war, the 2008 financial crisis, the Easter attacks, the COVID-19 pandemic, and financial downturns. Through each challenge, we remained focused on financial discipline and trust.
Trust has been central to our growth. Customers invest their savings, often taking long-term loans, and we recognize the responsibility this places on us. If there are shortcomings, we address them, ensuring buyers receive the best possible product.
We have successfully completed over 7,000 land development projects delivering a total of 70 projects. We are currently building 3,000 units. Our approach has been to introduce new products and designs that set industry standards. What sets us apart is that our completed projects often surpass initial visualizations, ensuring customers receive more than they expect.
Where is the real estate market now, and why is it a better investment than other options?
Real estate is a tangible asset, unlike financial instruments such as fixed deposits, stocks, or debentures, which are paper-based investments. Property can be used, rented, or developed, providing immediate and long-term value. Globally, high-net-worth individuals allocate significant portions of their wealth to real estate, recognizing its stability and appreciation potential.
Historically, real estate has been a reliable investment. Generations have invested in property to secure wealth preservation and growth. A well-chosen real estate investment safeguards capital and typically appreciates over time. However, the credibility of the developer is a critical factor. Before committing, investors should assess a developer’s track record, financial stability, and project completion history. Incomplete developments in Colombo are a cautionary example of projects that failed due to unreliable developers.
The market is currently experiencing strong demand, driven by low interest rates and the recognition that real estate offers better returns than financial products. After accounting for taxes, returns on fixed deposits can drop to around 5%, making property a more attractive option. As an island nation with limited land and a growing young population, Sri Lanka will continue to see high demand for housing.
Beyond local demand, Sri Lanka has the potential to attract international real estate investment, particularly from expatriates and retirees looking for a return destination or seasonal home. Structural reforms, such as improved residency visa schemes, could further enhance the sector. Countries like Dubai have successfully leveraged policy-driven real estate strategies, with luxury property transactions reaching $142 billion last year almost double Sri Lanka’s GDP.
A well-developed real estate market does more than attract investors. It supports tourism, long-term stays, and economic activity. By creating policies that encourage foreign investment and long-term residency, Sri Lanka could significantly expand its real estate market.
What sets Prime Group apart from other developments, and what new products and services are you introducing?
Prime Group has consistently introduced new concepts in real estate, evolving with each project. One example is YOLO Kiribathgoda, a development designed with modern amenities like a bowling alley and entertainment zone that caters to changing lifestyles. We have also introduced serviced apartments like the J’Adore & Venezia projects in Negombo. Located near major hotels, this model allows investors to purchase an apartment while we manage the rental, providing passive income.
Investors can track occupancy and bookings through an app, ensuring transparency. For instance, a one-bedroom unit renting at $100 per night could generate $2,000 monthly if occupied for 20 days. After expenses, net earnings could reach Rs300,000 to Rs350,000 annually. This model allows investors to scale, moving from a single property to a portfolio of multiple apartments, making real estate a structured long-term investment.
What are the biggest challenges for property investors, and how is Prime Group addressing them?
Over the last 30 years, we have introduced new real estate concepts to address key barriers for buyers, particularly the down payment. A 30% down payment on a Rs30–40 million apartment can be a significant hurdle, requiring Rs10–15 million upfront. Buyers must pay the remaining 70% during construction, within three to four years.
To make property investment more accessible, we introduced a payment plan where buyers pay 30% upfront and only 1% during construction.
This model improved affordability and led to strong sales, including two towers in Peliyagoda. However, we sought to reduce the financial burden further leading to the launch of Prime Max, a structured investment model designed to increase affordability.
Under Prime Max, a buyer can secure Rs40 million apartments with a downpayment of Rs4 million (10% of the total price) and monthly instalments of Rs200,000 over the years. This approach allows buyers to control a Rs40 million asset while paying Rs15 million over time. Property appreciation is based on the full value, not just the amount paid.
For instance, Prime Grand The Ward Place Colombo 07 apartments initially sold for Rs50-60 million now trade at Rs120 million. Similarly, Prime Splendor Rajagiriya bought for Rs25-30 million, is now valued at Rs60-70 million.
For investments under Prime Max, even with conservative appreciation, a Rs40 million property increasing by 75% in 3 years would reach Rs. 70 million, delivering a 173% ROI. Even at 50% appreciation, the ROI would be 94%, outperforming fixed deposits and other financial instruments.
This model enables long-term wealth building. Investors can purchase multiple units, sell one for profit, and reinvest. Many buyers use this strategy for retirement planning or as a structured investment. Prime Max provides a practical way to build financial security through real estate.
How do you see the next 5 to 10 years for Prime Group and the broader real estate market?
A recent visit by consultants from India highlighted Prime Group’s ability to operate with the agility, creativity, dedication, and entrepreneurial spirit of a startup despite being a 30-year-old company. This adaptability defines our approach. While we cannot control political or economic conditions, we can adjust our strategies to remain resilient and competitive.
Sri Lanka’s real estate market is positioned for growth. Investor confidence is increasing with a stable government and consistent policy direction. Tourism is expanding, creating opportunities in hospitality-driven real estate projects like J’Adore & Venezia Negombo. Lower interest rates are improving affordability, making this a favourable period for investors and the industry.
What is your message to existing and prospective investors? What should they take away from Prime Group’s journey?
When I look back at Prime Group’s journey over the past 30 years, one thing stands out above all: the focus on sustainable growth. In an ever-changing world, we’ve always placed importance on being adaptable and forward-thinking. While our journey has had its share of challenges, it’s through these challenges that we’ve grown stronger, refined our approach, and sharpened our vision for real estate investment.
To both our current and future investors, my message is clear: success in real estate is never about quick wins. It’s about long-term vision and making smart, informed decisions. Prime Group’s growth has always been built on trust, integrity, and a relentless commitment to quality, values that will continue to guide us moving forward.
I want you to take away from our story the importance of choosing a partner who’s just as committed to your financial security and growth as you are. Real estate is more than just buying property, it’s about building long-term wealth and securing a lasting legacy. With Prime Group you’re not just investing in real estate; you’re investing in a shared vision of stability, innovation, and lasting value.