Goa – a great second home destination

Goa has witnessed the entry of large national-level builders like Peninsula Land, K. Raheja Corp, Prudential, Paramount Builders and Nitesh Estates in the luxury villa segment. Villas are priced upwards of INR 2 crores and have a niche clientele. Goa also offers apartments and rows houses for middle-class investors. These are relatively in the affordable range, starting from INR 45 lakhs.

Holidaying in Goa for the second time, I have already started thinking about investing in this city. Goa, a happening town with golden beaches and fantastic weather, is an ideal place for holidays in India. Clean air, picturesque beaches, perpetual sunlight, an open culture, abundant greenery and appropriate infrastructure - the city has all the attributes of an ideal holiday-home destination. During the Christmas season, many tourists come to this place, and the city remains packed until the New Year. Throughout the year, Goa is quite a busy tourist destination too. The city provides all the facilities that tourists could ask for, including good accommodation, food, sports and night-life with beaches ranging from budget to super luxury. Located on the western coast of the country, Goa has been promoted as a round-the-year tourist destination in India and overseas through various events, media and publications. Unlike our metro cities, construction activities in Goa are rather restricted. North Goa and South Goa are the two famous districts among tourists. Thus far, North Goa is livelier than South Goa in terms of tourists and real estate opportunities. North Goa is the first one to see development in terms of real estate initially but now from Morjem in the North till Palolem coast in South, Goa is witnessing sporadic real estate development. A number of investment options from studio apartments to Portuguese villas are available along the famous beaches like Calangute, Candolim, Baga, Mapusa, Anjuna and other locations like Bambolim, Tuem, Amthane, Penha De Franca, Siridao, Ribandar and Merces. The property prices range anywhere between INR 45 lakh to a few crores depending on the distance from the beach and type of development.

In the last few years, the availability of large land tracts in South Goa has resulted in more developments in this district in terms of hospitality and infrastructure primarily along the coastline. Most of the large hospitality players like Leela, Zuri and Ramada have hotels that are operational in South Goa. Goa has also recently emerged as a wedding destination. In fact, South Goa is considered a perfect place for large Indian weddings due to the availability of large resorts along the coastline. Thus, from October to February, which is the wedding season in India, Goa generally sees a lot of wedding tourists.

A decade back, Goa was one of the most preferred destinations for second homes among NRIs and HNIs. But the city has seen decreased interest among investors in the residential sector in the last few years. However, this did not seem to have affected the real estate players as Goa witnessed the entry of large national-level builders like Peninsula Land, K. Raheja Corp, Prudential, Paramount Builders and Nitesh Estates in the luxury villa segment. These villas are priced upwards of INR 2 crores and have a niche clientele. Goa also offers apartments and rows houses for middle-class investors. These are relatively in the affordable range, starting from INR 45 lakhs.

Overall sales in recent years have remained slow primarily because most of these projects are located at off-beach sites and have higher price points. People prefer beachfront properties and most of the five-star hotels are providing direct access to the beach with sea-view rooms. Recent developments have started demonstrating the keen interest from locals and other investors. It has long been observed that people prefer buying land and constructing villas rather than staying in apartments. There has been a recent surge of projects selling subdivided plots, and many of these projects have seen good bookings starting from the initial period. On the infrastructure development front, the city has seen recent road development activity at several arterial roads in Goa. In addition, the hospitality business in India, and hence Goa, is set to see significant investment. Goa has recently seen a sudden surge in the supply of upcoming hotels. A new international airport has also been planned in the northern part of the city. Whether investment in Goa makes real sense depends on various factors like the investment horizon, priority and purpose. It has the potential to grow and with the growth in tourism and enhanced interest in the state, and the fact that the residential segment in Goa is closely linked to the fate of the burgeoning tourism industry, property developments in Goa are bound to see positive growth in the next few years.


About the author

Surabhi Arora, leads the research team in India and has more than13 years of experience in carrying out multi-disciplinary research and analysis in the area of finance and real estate industry. Surabhi specialises in real estate economics, policies, commercial and residential real estate research with in-depth knowledge of market dynamics across major markets in India.

 

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