According to a Savills India report, Goa has emerged as a preferred destination among buyers looking for second homes due to high rental yields ranging from 4 to 10%. The trend is seen in the coastal belt of north Goa covering localities from Candolim to Vagator.
Savills India has seen a trend where individuals are opting for rented villas in gated communities and independent ones in localities such as Porvorim, Parra, Assagaon, Saligao, Anjuna and Siolim, with rates per night ranging from Rs 15,000 to even Rs 1,00,000 depending on size and rooms of villas. The rentals per night and occupancy have increased by approximately 25 to 30%, driving yields higher from 4% to around 8% in some instances across micro-markets.
As per the report, throughout the pandemic, Goa witnessed an increase in demand for second homes given the benefits such as long-term end use, high rental yields, and usage as a first home. Further, the need for quality air, water, food, proximity to a cross-cultural environment, and an overall improved lifestyle has drawn homebuyers to the city. Many developers are capitalising on the growing market by selling villas in gated communities with a carpet area of 1,500 sq ft to 4,500 sq ft depending on the number of rooms with the average plot size from 2,000 sq ft to 8,000 sq ft. These villas typically range from Rs 3 crore to Rs 12 crore depending on the size of the property. There is a significant change in approach to purchasing a property in Goa, whether it is an apartment or a villa, which suggests longer stays of 15 -30 days instead of the usual three-to-four-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.
According to the report, Goa has attracted many investors looking to purchase vacation or holiday homes over the years. Business leaders, industrialists, new age entrepreneurs, media and film industry honchos, hospitality owners/micro-entrepreneurs and NRIs from London, Europe, Singapore, US, Dubai, and the rest of the middle east have come to the city to own a second home. Savills India has noticed a significant movement in the buyer’s profile with HNIs, salaried upper middle class and service-oriented industry professionals investing in the tropical state.
Shveta Jain, MD, residential services, Savills India said, “Goa has attracted many investors looking to buy second homes or holiday homes as they generate good rentals and offer good quality of life. Keeping up with the demand for homes in Goa, we are back with the second edition of Savills Home Fest Goa, where we curate the best of newly launched and pre-owned homes while providing professional advice to prospective homebuyers.”
As per the report, the New International Airport at Mopa in Goa, bordering Maharashtra, is expected to positively impact the development of infrastructure, hospitality and the second homes sector around less-frequented beaches such as Morjim, Mandrem, and Arambol. Accessibility to and from the villages of Siolim to Tiracol will help in the growth of these areas since significant commercial air traffic would gradually move from the current airport in South Goa to the northern-most part of Goa.
Know about: Villas for rent in Goa
