Konkan is the potential realty gem not yet explored: Ankit Kansal, Axon Developers | The Financial Express

Konkan is the potential realty gem not yet explored: Ankit Kansal, Axon Developers

In an interaction with FE Online, Ankit Kansal of Axon Developers shares his views on why the MOPA region is the potential goldmine for real estate developers, hospitality enterprises, travel operators, investors, and of course home buyers.

Konkan is the potential realty gem not yet explored: Ankit Kansal, Axon Developers
North Goa and Sindhudurg are already becoming thriving grounds for plotted developments, farmhouse communities, gated villas, second homes, and retirement homes.

In an interaction with Sanjeev Sinha of FE Online, Ankit Kansal, Founder & MD, Axon Developers, shares his views on why the MOPA region is the potential goldmine for real estate developers, hospitality enterprises, travel operators, investors, and of course home buyers. Mr. Kansal explains why the region with its lush green rural backyards, exotic thick forests, green capped hillsides, and beautiful panoramic views can give a facelift to the real estate and hospitality industry in western India. Excerpts:

Why is there so much spotlight on the MOPA and Sindhudurg region? Some years back, there was limited hype around the same. Today almost everyone is excited about the region.

There are a couple of things that have brought a monumental shift to the region. Firstly, very soon, the Rs 2300-crore airport project will start operating. We have seen recently how the Kempegowda airport has shifted the focus to the Northern region of Bangalore and transformed it into a bustling commercial and residential hub from once an outpost. Likewise, much of Gurgaon’s steep rise is rooted in its proximity to the international airport.

Airports are large projects and they link major constituents of growth such as infrastructure, tourism & hospitality, real estate, and trade. In the first stage itself, the MOPA project is expected to handle 4.4 million tourists annually, which will eventually be scaled to 13 million. As such a large project will unfold, it is natural that more investments will be directed toward commercial real estate, hotel, tourism infrastructure, housing, wellness, and much more. The aviation megaproject would not just connect the region with the rest of the world, but will also be the focal point of orchestrated sustainable growth.

Meanwhile, another important aspect that can’t be overlooked is the tremendous amount of natural beauty the region is endowed with. There is more to North Goa and the adjacent Konkan belt apart from beautiful coastlines. The region is a nature’s paradise with thick beautiful forest areas, laidback but mesmerizing rural backyards, green capped hills, and spellbinding views. Also, do not forget about baroque churches, European-styled villas, famous temples, the mouth-watering Goan-Konkani cuisines, picturesque paddy and mango cultivations in the countryside, and much more.

The hidden natural and cultural beauties of the region augmented by the newly-formed airport will repackage and present the beauty of North Goa and Sindhudurg to the world very soon.

So, you want to say that tourism and real estate will shift from the coastlines of Goa and Konkan to the interiors?

Well, for the past couple of hundred years, Goa has been known for beautiful seashores, palm coastlines, cultural events & carnivals, electrifying night lives, and much more. The popular sea beaches of North Goa such as Morjim, Anjuna, Siolim, etc. will continue to attract tourists.

Meanwhile, we will also see a gradual shift of tourism towards the interior. A lot of tourists who have already seen the beaches will gravitate towards the interior, lured by its calmness and tranquillity and mesmerizing natural beauties. The region has all the potential to become a thriving ground for concept-based real estate and tourism projects.

How will the real estate in the region evolve in the times to come?

North Goa and Sindhudurg are already becoming thriving grounds for plotted developments, farmhouse communities, gated villas, second homes, and retirement homes. The airport will further steer the real estate development in the region and renew homebuyers and investor interest. Goa’s Iconic status alongside the plethora of natural beauty and serene atmosphere (the temperature in the region mostly hovers 20-33 degree Celsius) will also feed into fuelling demand.

The pandemic has taught us the importance of owning a second home away from congested cities, noise, and pollution. The Konkan and the North Goa region, which is blessed with natural endowments such as thick eco reserves, stunning mangrove forests, gigantic large natural lakes, and much more, will become a natural ground for second homes, cottages, and villa-based properties.

The region is also adjacent to Maharashtra and Mumbai and conveniently linked to major metros in the south. Both working corporates, as well as entrepreneurs, are now betting big on the retirement and second home market in North Goa. Owning a villa or a cottage in the region is a great way to bond with the nature and now people are understanding this.

Also, since this is an upcoming location, properties are much more affordable than other popular hill stations and second-home destinations such as Lonavla, Alibaug, Ooty, etc. Even with a pocket of Rs 1-1.5 crore, one can think of owning a property in this region, which is remarkable.

Do you think investors will also be drawn towards the region?

Indeed, apart from end-use, there is plenty of headspace for investor maneuvering. Property prices are expected to make a steep jump, with the fastest growth anticipated near the airport project and the Sindhudurg region, as these are the micro markets where the real game will be played out. Positive ramifications will be felt in nearby regions as well. Average prices are expected to jump by 27-30% annually after the airport will finally come into the picture. Investors who can make early moves can capitalize on the big jump in property prices and reap high returns.

The region is also becoming a sought-after destination to host marriages and events. Similarly, long leases, workation, etc. will grow many times, giving a strong push to the rental markets. Presently the average rental yield in residential properties is in the range of 4-7% and this will grow further.

What lies in store for the hospitality sector in the MOPA region?

After real estate, hospitality will be the second market that will greatly benefit from the airport. Already tourism in Goa is recovering fast and in 2022, the average occupancy will reach 72.5%. A resurgent tourism sector will drive growth in the MOPA and Sindhudurg region as well, which will be further accelerated by the aviation project.

As the region will be connected with the rest of the world, the spellbinding beauty and the cultural charm will find more takers from India as well as abroad. As per the research done by the AXON Business Intelligence team, by 2030, the MOPA region alone will attract hospitality investments worth Rs 2,700 crore (USD 341 million). This will translate into 1500 rooms (3000 nights).

While definitely, the volume of 5-star and 4-star hotels will grow vigorously, there will incremental thrust on concept tourism as well. This will include nature resorts, spa & wellness centers, eco-resorts, lake hotels & resorts, jungle cottages, and much more.

In the face of soaring demand and limited supply, hotels are expected to enjoy 100% occupancy during peak seasons and weekends. During other times as well, a good quality property can clock occupancy in the range of 55-70%.

Is Axon also planning any development project soon in the MOPA region?

For a long, North Goa and Sindhudurg had been on our radar. We knew the potential of the market very well and always wanted to ace the market with a world-class project. Soon we are launching a mixed development project spread across 600 acres in the Sasoli region of the Sindhudurg district in partnership with Ess Vee Developers. The project is just 15-minute drive from the airport site.

Named ‘The Origin’, it is being built at a grandiose scale and is a mixed mega project with stylish villas, hotels, wellness centers, marketplaces, business hubs, outdoor activities, adventure sports, and innumerable other facilities. It will be a complete world in itself. Though immaculately engineered and splendidly designed, it will also be close to nature. Built on the backdrop of green-capped hills and sublime greeneries, it will encourage meaningful interactions between nature and residents.

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First published on: 11-10-2022 at 13:21 IST