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Goa – A Hot Second Home Destination

Torbit - October 30, 2022 - - 0 |
Goa is More Than Just a Second Home Market

Goa has emerged as a destination of choice for second home buyers owing to high rental yields ranging from 4-10% approximately. This trend is notably witnessed in the coastal belt of north Goa spanning from Candolim to Vagator. 

According to international property consultancy- Savills India, Goa  has witnessed a decisive trend where individuals are opting for rented villas in gated communities as well as independent ones across Porvorim, Parra, Assagaon, Saligao, Anjuna & Siolim, wherein the rates per night range from INR 15000 to even INR 100000  depending on size and rooms of villas.The rentals per night and occupancy have increased by 25-30% approximately, driving yields higher from 4%  and up to around 8% in some instances across micro-markets. 

Throughout the pandemic, Goa witnessed an uptick in demand for second homes given the benefits a property of such nature offers to the owner/homebuyer – long-term end use, high rental yields, and usage as a first home are among a few. More importantly, the need for quality air, water, food, proximity to a cross-cultural environment, and an overall improved lifestyle has drawn many homebuyers to Goa.Several property developers are capitalising on the growing market by selling villas in gated communities with a carpet area of 1500 sq ft to about 4500 sq ft depending on the number of rooms with the average plot size  ranging from 2000 sq ft to about 8000 sq ft. These villas typically range from INR 3 Crore to 12 Crore depending on the size of the property. 

There is a visible change in approach to buying a property in Goa whether it is an apartment or a villa, that suggests longer stays of 15 -30 days instead of the usual 3-4 day short-term stays. This only improves if homes are owned. 

Savills India estimates that Goa has witnessed more than 50% increase in demand over the last few years. Popular micro-markets being Pilerne, Parra, Assagaon, Nerul, Calangute, Porvorim, Siolim, Anjuna, Mandrem and Saligao. 

Over the years, Goa has attracted many investors looking to buy vacation or holiday homes. Business leaders, industrialists, new age entrepreneurs, media & film industry honchos, hospitality owners/micro-entrepreneurs, and NRIs from London, Europe, Singapore, US, Dubai, and the Middle East have thronged to this picturesque tourist hotspot to own a second home. There is  a significant movement in the buyer’s profile with HNIs, salaried upper middle class, and service-oriented industry professionals investing in the tropical state. According to Shveta Jain, MD, Residential Services, Savills India, Goa has piqued the interest of homebuyers even before the pandemic. The serene charm of Goa has attracted many investors looking to buy second homes or holiday homes as they generate good rentals and offer good quality of life.  

The new International Airport at Mopa, the northern-most tip of Goa, bordering Maharashtra, is slated to positively impact the development of infrastructure, hospitality and even the second homes sector around lesser frequented beaches like Morjim, Mandrem, and Arambol. Accessibility to and from the villages of Siolim to Tiracol will help develop these areas given that a lot of commercial air traffic will gradually move from the current airport in South Goa to the northern-most part of Goa. 

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