Do you want to own a home which is away from the hustle and bustle of the city life and is close to nature? Then Goa is the place to be. Goa’s serene location, quiet life and strong economic environment make it an attractive investment destination for many of the investors who are especially looking to buy a second home.
What more, since Goa is a popular tourist destination among both foreigners and Indian, people invest in vacation homes that increases its potential to generate good rentals. Many people also see Goa as a retirement home destination. According to PropTiger.com, Goa is one of India’s most popular tourist destinations. In 2014-15, the state attracted 3.54 million tourists, of which 0.51 million were foreign tourists. With its tranquil charm and party tag, Goa is seen as a prime destination and it is these very traits which are giving shape to two distinct real estate markets within Goa.
Experts also see Goa as an investment destination for people looking for second home and among others NRIs have shown keen interest in the city’s real estate. Rajeeb Dash, AVP Sales & Marketing Tata Housing Development Company Limited said,” “In the recent years, Goa’s real estate market has seen a considerable change in the choice of residence purchase. The growing class of affluent, NRIs are increasingly investing here mainly due to the desire to stay close to nature. It has become one of the prime destinations for people from Delhi, Mumbai and Bangalore seeking second homes that offer them the much needed space to unwind and pull away from rumble of metros. Also, given the fact that Goa is perceived as a vacation destination among millennials, the average age of a buyer has come down by a few years in the last decade as there has been a considerable demand from the youth.”
So, how is Goa’s real estate market in the midst of slowdown in the sector. Experts feel that with builders planning new launches, there are indications of growth in the Goa real estate market after a slowdown. The prices in the affordable segment range upto Rs 4,500 per square ft, while a high villa can go upto 2-3 crores. Anurag Jhanwar, Head – Consulting and Data Insights, PropTiger.com elaborates more on the prices and said, ” In the affordable segment the avg. Basic Sale Price (BSP) vary from Rs 3,400 to 4,000 /sft while in the High end segment the avg. BSP ranges from Rs 6,000 to around 12,000 /sft. The prices overall have been stable in most of the micro markets month on month , however on yearly basis Dabolim has seen the maximum appreciation of 30% whereas Margao has witnessed a correction of around 5% YoY.”
Sounding positive about the Goa real estate, Vivek Agarwal, Co-founder and Principal Partner, Squareyards.com said ,”Goa makes a compelling real estate bet with sound infrastructure and good economic environment. Real estate prices in Goa range from Rs 4500 p.s.f. to Rs 6500 p.s.f. Most of the properties are within this price range. But the prices change across areas and category of houses. A row house villa would approximately cost Rs 2-3 crore.”
Goa property market is divided into two micro markets – North Goa and South Goa. Amongst these, north Goa is witnessing a lot of action due to increasing customer demand and is quite popular with investors due to its accessibility and shopping facilities, which makes it a better investment destination over south. The region is more popular with tourist due to its resorts, popular beaches, malls and clubs along the Miramar-Arambol stretch. However, South Goa comes across as a more affordable destination. According to Squareyards.com, in North Goa areas like Anjuna, Candolim and Panaji are good bets to invest in North Goa.
What makes Goa an attractive real estate bet? Since, Goa is a preferred holiday destination among national and international tourists, Goa receives several tourists every year. Most of the foreign tourists who come to Goa stay for longer periods, thus renting a holiday home is an obvious choice for them. Additionally, hotels of Goa at times are unable to accommodate the huge influx the state sees during the peak season. Thereby, holiday homes become the alternative for tourists both for long stay and flexibility which they offer.
According to Jhanwar, most upcoming mega or Infra projects are along the coastal belt of North Goa. “Mapusa, Siolim , Penha de Franca, Porvorim , Socorro, Saligao –Calangute Stretch, Candolim etc are interesting areas to invest in North Goa depending upon the Budget one has. The average prices for these markets range from Rs 4,000 to 10,000/ Sft depending upon the type of project & location. Other locations which seems to be preferred by many neo-Goans is Dona Paula & Dabolim, towards the Central & South Goa.”
However, there is only one major negative of investing in Goa and that is largely seen as a second home market may not bring in immediate gains. Although a good rental market, Goa’s rental income is directly proportional to tourist inflows.