Emerging social-spatial polarisation within the housing market in Colombo , Sri Lanka

Abstract

This paper discusses the results of a study undertaken to understand the emerging relationship between state, market and social classes in the Colombo Metropolitan Region (CMR) in Sri Lanka. Castells1 saw the city as crucial to modern capitalism by creating new markets and different social classes in society. Housing is a central element of urban socio-spatial structures. It is a major component of people’s lives in cities. Three housing units were studied in detail: Sahaspura, a public sector condominium inhabited by lower class; Mattegoda, a public sector housing complex inhabited by lower-middle class; and Millennium City, a private sector housing complex inhabited by middle and upper-middle class. The sample survey (325 units) was supplemented by qualitative data collected from residents by using informal interviews and non-participant observation. The study reveals that the rising demand especially among the middle and upper classes for private housing localities has resulted in a steep rise in land prices, hence making private housing unaffordable to the lower classes, who as a result have sought the help of government housing schemes to purchase or obtain housing in urban areas. This study also illustrates that housing loans have further encouraged interest in private housing, providing a big boost to the existing housing market. The urban regeneration and renewal programme in central districts of Colombo has led to a mass eviction of the poor. The land that has become available is being used for commercial and luxury housing development. The process has led to the emergence of urban classes based on the housing structures they reside in.