DOES PROXIMITY TO WATER BODIES IMPACTS MARKET VALUES OF RESIDENTIAL PROPERTIES? CASE STUDY OF DIYAWANNAWA LAKE AREA
This study examined the impact of water bodies with a scenic view on residential property values around Diyawannawa lake located within Sri Jayewardenepura Kotte Municipal council (a suburban area of Colombo district). The study employed both primary (structural and environmental data related to properties, different types of benefits generated from water
bodies) and secondary data (market evidence) whilst the data analysis included content analysis and a regression analysis (hedonic pricing model). Water bodies with scenic views generate multiple utilities for residents such as observing nature, relaxation, and playing, pleasant views, appreciation of colour and sounds, relationships with family members and neighbors, a place to exercise and cycling, stress relief likewise. According to the study, between 2019-2020, a residential property with a scenic view of 600 or more to Diyawannawa Lake had a premium market value of Rs. 803,433.05 compared to other properties. Furthermore, the residential properties one meter away from such water body showed a decrease in market value of Rs. 23049.65. These findings will raise awareness on the benefits of water bodies with scenic views and it will lead to greater acceptance by residents, developers, local authorities to invest and protect them, which could contribute to overcoming one of the barriers to maintaining such water bodies in good condition.
Keywords: water bodies; residential property; market value