A friend said something quite surprising a couple of days ago. There is hardly a middle class left, just a small circle of the very rich and a large mass of the less well off.
My friend has a small flat in Borella that he was trying to sell for around Rs.15m that has attracted very limited interest. I have another friend who has a nice house in Kotte for sale for Rs.21m and he has been waiting for over two years with no serious offers.
My friend thinks, there is fair interest for houses upto a value of about Rs.4-5m. There is also not much difficulty in disposing a flat at Monarch, Empire City, Emperor or Iceland for Rs.70m+. Houses and flats in the range of Rs.10-25m, prices that should be affordable to the middle class, bring forth very few buyers.
I think consumption taxes and price increases over the past decade have hit the middle class disproportionately, while they have (in general) been unable to cash in on the big deals that have taken place over the past few years.