Why is Goa gaining prominence as second home destination?

Being one of the favoured tourist destinations, Goa has emerged as the preferred second home destination in India, especially for High Net-worth Individuals (HNIs). This is primarily because owning a holiday home in Goa not only offers the benefit of luxury living but also attractive rental yields.

Be it for the personal retreat or diversifying the asset portfolio, the second home market in Goa has generated quite a buzz among investors. The Union Territory (UT) has increasingly gained prominence as a strong contender in the real estate market due to the heavy footfall of local and international tourists. Buying a property in Goa is considered a safe and intelligent investment decision that ensures high rental returns and resale value. On average, properties in Goa can yield 12-16 percent returns annually. Competitive real estate prices, when compared to metro cities of India, is yet another major reason why investing in a holiday home in Goa seems to be a profitable option.

According to Aditya Kushwaha, CEO and Director, Axis Ecorp, “The demand for real estate in Goa has been growing steadily over the past few years. On an average, there has been a 30-50 percent appreciation in the Goa real estate market in the last three years. Similarly, the luxury holiday homes market in Goa has always been in high demand, and witnessed further highs in the post-COVID-19 times.” (informations only.com)

Where should you invest?

The Goa real estate market is sub-divided into two- North Goa and South Goa. As compared to its southern counterpart, North Goa is more of an investment market. People looking to buy properties primarily for investment purposes prefer North Goa as it offers better rental and resale avenues. This part of Goa is also better developed and provides you with a lot of recreational options ranging from beautiful beaches to historic places and popular markets. Furthermore, North Goa is more frequented by tourists; thus, the demand for rental properties here is always high. Investors either keep their property for self-use or convert it into homestays to reap decent returns.avenues. This part of Goa is also better developed and provides you with a lot of recreational options ranging from beautiful beaches to historic places and popular markets.

The Miramar-Arambol stretch in North Goa is quite famous among tourists as it houses several popular clubs, beaches, resorts, and shopping centres. Therefore, experts suggest that investing in this region could be a good option. Anjuna, Panaji, Socorro, Mapusa, Baga and Candolim are some other areas that are considered good for investment purposes.

Contrary to North Goa, South Goa is slightly more affordable due to less commercial and tourist intervention. It is more suitable for end-users. Depending on the budget, a property buyer can consider Colva, Madgaon, Vasco, Utorda, and Dabolim for investment in South Goa.

“There are several locations that are good for investment in and around Goa. These days, people are also investing in the peripheral areas as they offer larger spaces at a lesser price. It is also perceived that residential projects near upcoming infrastructure, such as metro and major highway projects yield better results. North Goa, for that matter, is highly preferred by investors as there are several new projects coming up in this region. The area is close to the upcoming MOPA Airport and offers abundant natural beauty. With respect to the property rates, a 2 BHK in South Goa costs somewhere between Rs 60 lakh and Rs 1.2 crore. A beach side villa, on the other hand, can cost as much as Rs 4.5-Rs 6 crore depending on the facilities and the carpet area. The rates are about 30-40 percent higher in North Goa.” (informations only.com)

Talking about the rentals that property in Goa can attract, Aditya avers, “A fully-furnished 2 BHK villa, costing up to Rs 2.5 crore, can earn up to Rs 20,000 per day as rent, depending upon the location. If the property is located near the beach, the rent can even go up to Rs 40,000 per day.”

Catching up on the second home trend, developers, in large numbers, are coming up with exclusive projects in Goa. While villas are the most demanded property type, luxury and designer apartments are also fast picking up the pace. (informations only.com)

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