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Rise in demand for gated villas in Goa boosts second home market: Savills India

Goa has emerged as a destination of choice for second home buyers owing to high rental yields ranging from 5-8% approximately. Savills India has witnessed a decisive trend where individuals are choosing gated villas along the coastal belt, with sizes ranging from 2,000 to 4,000 sq-ft. for 3-4 bedroom units. Plot sizes for these gated villa projects vary from 190 to 400 sq-mtr. Reputed developers in Goa include Isprava Homes, Vianaar Homes, Veera Developers, Bennet & Bernard and Acron Homes, Ashray, Bennet & Bernard and so on.

With the advent of asset management firms and hospitality operators managing individual homes, buyers for second homes are not only end buyers but retail investors seeking both rental returns and capital appreciation. Also, at one point Goa was primarily known as a retirement destination for older generations or just a holiday destination. However, recent trends show a shift – younger professionals, especially from major cities like Mumbai, Delhi and Bangalore and other prominent cities are now moving to Goa. These new residents often work in creative fields or are digital nomads seeking a better work-life balance.

The supply of villas in Goa has shifted, with the standard size decreasing from 500 sq-mtr to 250 sq-mtr over the past five years due to rising land prices. Premium views remain desirable but scarce, and investment motives now often outweigh end-use objectives. While beach proximity is still preferred, locations like Assagaon and Siolim attract lifestyle-conscious buyers who prioritise address and quality over beach access.

The average home size in prominent locations has fallen to 300 sq-mtr, while emerging areas still offer larger properties. There are two main buyer categories: investor-aspirational and end-user, including professionals, industrialists and those seeking capital gains deployment.

Vacation rentals in popular micro markets yield high rental income, providing competitive ROI and steady income for investors. Demand for private villas, favoured by families and groups, is rising. Savills India’s research indicates that buyers are primarily individuals aged 30-60, including both salaried professionals and businessmen. These buyers are attracted by rental returns and capital appreciation, achieving gross yields of 10-12% per annum for wealth diversification. Today, it can be noted that premium gated villas in locations like Assagao and Siolim are priced equivalent to the homes in grade A locations in South Delhi and South Mumbai.