Goa's Realty Rush: A Paradise for Investors, A Concern for Locals
Goa's property market is booming, with luxury homes and premium plots in high demand. But as the state transforms into a hub for real estate investment, locals are expressing concerns over the impact on their way of life.
GoaReal EstateProperty MarketLuxury HomesPremium PlotsReal Estate MumbaiSep 19, 2024
The accelerated demand for both first and second homes in Goa was driven by its attractive rental income and long-term appreciation potential. Rental yields had reached 9 to 10%, as per Savills data, possibly the highest in the country. Rental yield is the annual return that a property generates as rent, expressed as a percentage of its market value.
Between January-June 2024, average capital values for villas in North Goa saw a 28% year-on-year increase due to this growing popularity as a second-home location, the preference for gated villas, and a demographic shift towards younger, lifestyle-focused buyers. Certain popular micro markets such as Anjuna, Arpora, Baga, Calangute, Candolim and Vagator along the North Beach District witnessed higher appreciation. Rents in these places rose 25-30%.
Another major development is the 2023 opening of the Manohar International Airport at Mopa, a village in North Goa’s Pernem taluk. There has been frenetic landbuying in villages near the Goa-Maharashtra border and near the airport, which will open up new locations for real estate, tourism, retail and hotels in the years to come.
Vikas Wadhawan, group chief financial officer, Housing.com and proptiger.com, said the new airport has been a game changer. “With better connectivity, pockets of land around the airport will suddenly open up for investments and development,\
Frequently Asked Questions
What is driving the demand for real estate in Goa?
The demand for real estate in Goa is driven by its attractive rental income and long-term appreciation potential, as well as its growing popularity as a second-home location.
What is the average rental yield in Goa?
The average rental yield in Goa is 9-10%, according to Savills data.
What is the impact of the new airport on the real estate market in Goa?
The new airport has opened up new locations for real estate, tourism, retail, and hotels in the years to come, according to Vikas Wadhawan, group chief financial officer, Housing.com and proptiger.com.
What is the concern of local developers in Goa?
Local developers are concerned about the sudden surge in competition from developers from other states, which has impacted their business.
What is the concern of locals in Goa?
Locals are concerned about the impact of the frenzied real estate activity on their way of life, including the conversion of agricultural land, cutting of hills, and misuse of power to accommodate the real estate lobby.
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