Goa - an idyllic holiday home destination

Goa is the smallest state in India by area and the fourth smallest by population. It is also one of India’s most visited tourist locations due to its numerous beaches, colonial architecture and unique Indo-Portuguese heritage. The state has had a healthy flow of both domestic and foreign tourists. As per the tourist statistics, the domestic and foreign arrivals together accounted for approximately 2.78 million tourist population (as of 2012) which is more than the state’s population. Tourism in fact remains the main contributor to the state’s economy with numerous leisure events like the popular flea markets and the Goa carnival celebrated here. Further, there are several corporate events, meetings and conferences held in the city that essentially look at the high-end hotels in the region.

Located on the western coast of the country, the state of Goa is divided into two districts: North Goa and South Goa. The two prime administrative regions in Goa are Panaji, which is the headquarters of North Goa district, and Margao, the headquarters of South Goa district. Each district is governed by a district collector, an administrator appointed by the government.

Industrial activity in Goa witnessed a boost during the period from 1993 to 2002 as a result of special income tax status from the Government of India and a sales tax holiday from the Government of Goa. However, growth has been muted over the last few years due to the economic slowdown, and lack of a robust framework for industrial growth. The closure of mining activities in the state has further adversely impacted the state’s economy. The manufacturing sector grew at a low 2.8% in 2011-12 over 2010-11 while the overall GSDP grew at 5.9% largely due to the relatively healthy growth rate of 12.1% in the tertiary sector.

Tourism contributes significantly to Goa’s economy; the hotel business has in fact become synonymous with Goa due to its long coastline and several beaches. October to February is the peak period for tourist arrivals, while March to May are shoulder months when the hotels host ample conferences and conventions. June to September are the lean months owing to the heat and the monsoons. During the off season, it is mainly the MICE events such as conferences and annual meetings along with domestic customers availing travel package schemes that contribute to room sales.

Lack of speedy infrastructure development is a major hurdle to the overall state development. Though a new international airport has been planned in the northern part of the city at Mopa, the project has still not passed the approval stage.

Real estate development apart from hospitality is relatively slow in the city. The residential second home / holiday home market has gained a bit of popularity in the recent past. Till some time back, the market predominantly had developments offered by local developers. But recently national level players like Peninsula Land, K. Raheja Corp and Nitesh Estates have entered the Goa market. The average pricing for residential developments is in the range of INR 4,000 to INR 5,000 per sq ft.

 

Interesting Facts

Value

Smallest State in India

3,702 sq km

Tourists visited Goa in 2012

2.78 million

Total no. of hotels (including star as well as unrecognised)

2,777

Total no. of hotel rooms

26,859

 

About the author

Divya Seth Maggu, General Manager, Valuations & Advisory Serviceshas expertise in real estate valuation and advisory across asset classes. She specializes in best-use studies, feasibility studies, location advisory, property consolidation, financial modeling & market surveys. She has led and participated in a variety of real estate assignments across West, Central & South India. She is a Chartered Alternative Investment Analyst (CAIA, USA) as well as a Registered Valuer (RICS, UK).

 

India
Colliers International | Mumbai, Indiabulls Finance Centre, 17th Floor, Unit No. 1701, Tower 3, Senapati Bapat Marg, Elphinstone (W), Mumbai 400 013, Maharashtra, India | Tel: +91 022 4924 9780