Are you planning to invest in the Goa Home Market?Business News

June 22, 2024 12:34
Are you planning to invest in the Goa Home Market?

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Goa has emerged as the preferred destination for second home buyers due to its high rental yield of 5-8%. Real estate advisory firm Savills India said in a report that it is witnessing a strong trend of people opting for gated beachfront villas measuring 2,000 to 4,000 square feet in 3 to 4 bedroom units. According to the latest estimate by Savills India, the land area of these gated villa projects varies between 190 to 400 square meters. With the emergence of property management companies and hotel companies that manage private homes, second home buyers are no longer just end buyers, but individual investors looking for rental income and capital appreciation. Furthermore, Goa used to be known primarily as a retirement destination for the older generation or simply as a holiday destination. However, recent trends indicate a change: young professionals are migrating to Goa, especially from major cities like Mumbai, Delhi, Bangalore and other major cities. These new residents often work in creative fields or are digital nomads looking for a better work-life balance.

The range of villas in Goa is changing, with the standard size dropping from 500 sq m to 250 sq m in the last five years due to increasing land prices. Premium views, while still desirable, are rare and investment incentives now often outweigh end-use goals. Proximity to the beach is still preferred, but places like Assagaon and Siolim are attracting lifestyle-conscious buyers who prefer address and quality over beach access. While the average house size in established locations has fallen to 300 square meters, emerging areas are still offering larger properties. There are two main categories of buyers. A holiday trend for potential investors, professionals, traders and end consumers looking for capital gains.

Popular vacation properties in the retail market offer high rental income, offering investors a competitive return on investment and stable income. Demand for private villas, popular with families and groups, is increasing. According to a study by Savills India, buyers are predominantly people between the ages of 30 and 60, including office workers and businessmen. These buyers are attracted by rental income and capital appreciation, earning gross returns of 10-12% per annum to diversify their assets. It is interesting to note that the prices of luxury villas in places like Assagao and Siolim are now comparable to houses in prime locations in South Delhi and South Mumbai. As Goa continues to grow and attract more and more tourists, the commercial real estate market is also growing. The combination of work and leisure makes Goa an ideal place to set up commercial office space, especially in sectors such as hospitality, technology and creative services. The appeal of commercial properties in Goa lies not only in the potential rental returns but also in the long-term appreciation. As the state's economy diversifies and its infrastructure improves, the demand for commercial properties for sale in Goa is expected to increase, making Goa a lucrative investment option.

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Tagged Under :
Goa Home Market  Real estate