Kundasale

Kandy's modern eastern growth suburb, newer homes, planned zones and the Pallekele sports hub for appreciation-focused investors.

Updated June 19, 202611 min read

About Kundasale

Kundasale sits about 7 km east of Kandy along the A26, within a divisional area of roughly 150,000 people. Unlike heritage Ampitiya or established Katugastota, it reads as Kandy's modern frontier: planned residential zones, new-build and scheme housing, and a commercial and sports node anchored by the 35,000-seat Pallekele stadium. Everyday needs run through Lanka Sathosa, the Damro showroom and local eateries, with the Bandaranayake National School and the School of Agriculture among its institutions. It scores strongly on facilities and connectivity in a green, family-friendly setting, with the caveat of being more spread-out and further from the city core. The appeal is space, newer homes and a sense of planned growth. For investors it is the clearest appreciation play of Kandy's new areas. Land at LKR 380,000-480,000/perch and new homes commonly LKR 12M-32M keep entry accessible, with yields of 4-6% slightly ahead of the older suburbs. Reported overseas interest and planned zoning support the growth case, but it depends on continued buildout and competes on price rather than prestige, alongside the standard foreign-ownership limits.

Location

Kundasale in Kandy, Central Province, Sri Lanka

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Figures are indicative and subject to change. Regulations, taxes and market conditions vary by jurisdiction. Do your own due diligence and seek independent legal and financial advice.

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