Right Time to Invest in Goa Real Estate
Goa is one of the most popular tourist destinations in India, due to its beautiful beaches, lush greenery and tourist attractions. However, many people are not aware that Goa’s realty market has silently made its entry on the map of Indian real estate market. At the same time, the economic problem in the country has also affected the Goa real estate market. Here is an analysis to see whether it is a good time to invest in Goa’s real estate market.
Goa real estate
Goa attracts tourists all over the year. Its economy is primarily driven by tourism, as it is the most sought after destination among tourists, both at home and abroad. Along with this, Goa has also witnessed a slow, yet steady growth in its real estate sector since 2010. Not only has it witnessed investments from people in India, but also from people abroad, especially among high networth individuals (HNIs) and NRIs.
Property in Goa has a good resale potential as well as good rentals. For example, a good sea-facing property or a well located property easily fetches a monthly rental of Rs 1-1.5 lakh. Most of the investments in Goa are also from the eminent class who love to buy a property by the beach side. Projects are coming up all over the state, especially in Panaji, Povorim, Calangute, Colva, Vasco and Anjuna. There are several developers such as DLF, Parsvnath, Acron, Riviera Constructions and Nirvana Nest in Goa.
There are several configurations of properties available on a freehold basis in Goa, ranging from 1-5BHK apartments, villas and builder floor apartments. While a 2BHK property costs between Rs 30-50 lakh, higher configuration properties with luxury features are available for a budget of Rs 75 lakh-2.5 crore.
Current scenario
The Goa real estate has, however, not been unaffected by the volatility in the Central Government, rising prices and the economic problems the country. Real estate prices have been growing in Goa for the last couple of years. The approximate property value in Goa ranges from Rs 3,000-9,500 per sq. ft. depending on the location and amenities in the area, which has continuously gone up. This has led to buyers holding back on their purchases, in anticipation of prices going down. One of the only options available for developers is to offer freebies and discounts to lure customers. That too has taken a hit due to the ban on sand mining, which has led to increase in sand prices and hence, construction prices.
Having said that, there is still a good scope for real estate in North Goa, owing to its good social and civic infrastructure. Siolim and Assagao belts are expected to see good growth in the property market this year. This is mainly due to their proximity to tourist hot spots such as Baga, Anjuna, Vagator, Morjim and Ashvem. Moreover, Goa has excellent connectivity to major cities such as Mumbai, Delhi, Pune, Bangalore and Chennai by rail, road and air.
Goa is still witnessing a demand for apartments in the range of Rs 70-80 lakh and villas in the budget range of Rs 1.2-1.5 crore.
Looking at the current property trends in Goa, while the real estate market seems to be stagnant in some areas, good growth is expected in North Goa. As such, one can invest in localities of North Goa. One can also negotiate good offers in areas where the market is currently stagnant.
