Mumbai-based property development company Natvar Parikh & Co will invest 13 million dollars in the first phase of the project to build 272 luxury condominiums, the Board of Investment said Tuesday.

The BOI agreement signed with Atlantis Developments which will undertake the project will entitle the property developer to tax and other concessions under Sri Lanka’s investment promotion law.

The residential apartment complex is to be built at Rajagiriya, a suburb west of Colombo.

The first phase of the project will provide employment to 20 people, the BOI said in a statement.

It is part of a bigger project consisting of 60,000 houses to be built at an estimated investment of a billion dollars, the BOI said.

The agreement signed Tuesday is the latest high rise construction in the island, which has been witnessing a property boom in recent years.

The apartment is a late starter.

There are signs, however, that the building boom, especially of luxury apartment complexes, may be over with demand at the upper end of the market being met for the time being.

Sri Lankans rushed to invest in property following three years of money printing and interest rates lower than inflation or negative real rates, causing a property bubble that sent land prices zooming.

However the interest rate structure started to get corrected last year following tighter monetary policy by the central bank, making less money available for speculative activity.