South Asia’s luxury real estate and hospitality sectors are growing rapidly, shaped by investor expectations, technological innovation, and demand for experiential living. In an interview with Echelon, Chief Executive of the Crystal Property Group (CPG) Reza Magdon-Ismail addresses how developers are navigating regulatory challenges, futureproofing projects, and creating integrated offerings that balance lifestyle goals and sustainability with financial returns.
Sri Lanka is often seen as a challenging market for foreign investment, particularly in real estate. What policy or structural changes could make it more attractive for high net worth individuals seeking holiday homes?
Sri Lanka’s real estate regulations, particularly the Land Alienation Act and condominium laws, are already clear and transparent, giving foreign investors confidence in ownership structures. Our focus has always been to work within these regulations, which helps build trust among international buyers.
Where improvements could be made is in residence and home investment schemes. They are under development by the government, and we expect them to become more sophisticated and attractive over time for high net worth individuals. Beyond regulation, continued investment in infrastructure, such as road networks and airport expansions, is key. While progress slowed during recent economic challenges, these projects are now picking up again, which bodes well for leisure-focused real estate and hospitality driven investment.
CPG takes a personal approach with its projects, covering infrastructure, finance, manpower, and hospitality. How do you maintain cohesion and quality across such a diverse value chain?
From the outset, we made a deliberate choice to build strong in-house capabilities across the value chain. While we collaborate with leading designers, core functions such as project management, procurement, and operational oversight are managed internally. This gives us greater control, consistency, and resilience, especially during challenging periods.
This approach has also enabled us to develop a highly skilled team, strengthen our brand and build a proven track record of delivering quality projects even in difficult circumstances.
Your Resort Residence Model combines luxury development with hospitality. How does this dual focus shape your design process and investor returns?
Design is at the core of everything we do. We believe strong design creates a stronger product, which in turn enables exceptional hospitality and service. This philosophy underpins our Resort Residence model where private residences are integrated with the infrastructure and experience of a luxury resort. By combining real estate with hospitality, we’ve been able to create versatile, high quality developments that deliver both lifestyle value for owners and sustainable financial returns for investors through capital appreciation and rental income.
Recent challenges in Sri Lanka have made staff retention difficult. What leadership principles or company culture have helped you maintain scale while others downsized?
Our approach to staff retention has always been rooted in culture and leadership style. We built CPG around a horizontal structure with complete transparency. I share my workspace with our Chief Projects Officer, and this openness fosters collaboration, accountability and an all-hands-on-deck attitude when challenges arise.
Equally important is our focus on individual growth alongside company growth. We want every team member to see CPG not just as a workplace, but as a platform for personal and professional development. We actively encourage our people to pursue better opportunities, whether within the company or abroad. Many who leave for international exposure often return, drawn back by the culture of trust and empowerment we’ve created.
While we invest in formal HR and training programmes, what truly sets us apart is this culture of openness and growth. It has helped us retain key talent during difficult times, maintain scale when others downsized, and build a committed team that continues to drive our success.
An aerial view of Digana by Crystal Property Group, combining natural surroundings, thoughtful design, and wellness-focused amenities
Luxury real estate and hospitality are increasingly competitive spaces in South Asia. What unique factors set CPG apart from local and international players?
Differentiation begins with integration. By managing the entire process internally, we ensure consistency and quality across our portfolio, which gives investors confidence in both the product and its delivery. Second, our Resort Residence model combines the best of real estate and hospitality. Owners enjoy well designed holiday homes that also operate as high quality hospitality assets, generating rental yields when not in personal use. This balance of lifestyle and return is a core strength of our model.
Finally, our diversified portfolio sets us apart. From beachfront villas to wellness retreats in the mountains, we offer inves- tors a range of experiences across different geographies. Our ‘Home Around the Pearl’ programme connects these properties, creating a cohesive brand ecosystem. Together, these elements position CPG not just as a developer, but as a regionally competitive lifestyle and hospitality brand.
How do you build and maintain trust with international investors in an emerging market where regulations can be unpredictable?
For us, building trust with international investors begins with transparency and consistent delivery. Since the establishment of Crystal Property Group in 2018, we have navigated multiple global and domestic crises, and maintaining open communication has been essential. We keep our clients informed about challenges, investment trajectories, and project developments, ensuring they understand exactly what they are investing in.
This approach has fostered strong confidence and loyalty, creating a repeat investor base. Beyond transparency, we prioritise ongoing engagement with investors being treated as part of the CPG family instead of as one-time clients. We always maintain open lines of communication and provide regular reporting, reinforcing trust and accountability. By combining transparency, reliable delivery, and continuous engagement, we have established a strong and reputable brand that stands out on delivery and service, providing a solid platform for long term growth.
With your interconnected suite of offerings, how is CPG futureproofing its developments to stay relevant, resilient, and luxurious?
We believe futureproofing begins with design. We don’t create products for today; we design with tomorrow in mind, anticipating what investors will value in the future. Sustainability and technology are cornerstones of this approach. For example, we were the first in Sri Lanka to launch fully managed resort residences, providing investors with real time data through an app that tracks occupancy, revenue and performance, enhancing both transparency and confidence.
We also prioritise world class design. While we collaborate with exceptional local architects, we actively engage international talent, such as with projects in the Maldives, to ensure our developments meet global standards. By combining forward-looking design, operational innovation and top tier architectural expertise, we have built a brand that remains relevant, resilient and true to our vision.
A look inside one of the spacious interiors at Digana by Crystal Property Group, designed to offer comfort and elegance while complementing the natural surroundings of the resort
CPG began with a single luxury development and now aims to redefine the sector in Sri Lanka. What’s next for the company?
Since entering Sri Lanka in 2018, we have seen immense potential in tourism and leisure-driven real estate. While the past five years have presented challenges, the opportunity has re-emerged, and our primary focus remains on establishing and expanding our real estate and hospitality developments within Sri Lanka. We now have a strong foundation to grow and deliver value in this core market.
At the same time, we are exploring regional opportunities, such as a co-development in the Maldives, which provides valuable experience in new markets. On the hospitality side, our own management company, ‘One Group of Hotels’, not only oversees our assets but also manages external properties. Looking ahead, we aim to expand selectively into complementary areas such as restaurants, food and beverage, and experience driven hospitality, while remaining focused on our core strengths in real estate and hospitality, ensuring sustainable growth and long term value creation.