The demand for vacation homes in India has increased significantly after the pandemic and the need for breaks from the strenuous life of cacophonous cities. Vacation homes is one of the fastest-growing segment in India’s realty market, which was sized at $1.4 billion in 2021, is expected to grow at a CAGR of 23.63% in the next four years and cross $4 billion by 2026. Tourist destinations near beaches, hill stations, and non-metro cities with favourable climates, nature access, and proximity to the sea, countryside, or mountains are preferred places and being the real estate haven, Goa is the first love for connoisseurs investing in vacation homes.
A harbor of global communities
Goa’s housing trends focus on community living and attracting individuals from diverse backgrounds and cultures. This diverse community is characterized by its inviting and welcoming atmosphere, which fosters a strong sense of belonging among residents. New developments in Goa are thoughtfully designing communal spaces with shared amenities, such as communal gardens and rooftop lounges, to encourage neighbours to connect and share experiences. This creates a rich tapestry that sets Goa apart from other coastal destinations. Residents enjoy the comfort and convenience of their homes, as well as the opportunity to connect with others, creating a rich and diverse living experience in this coastal paradise.
Investors going gaga over Goa
Post-pandemic, the real estate market in Goa experienced a staggering growth momentum due to attractive rental income and long-term appreciation prospects. The market stands out among second-home destinations in India, with a surge in online searches for villas priced between Rs 1-3 crore. However, there has been a decline in demand for properties below Rs.50 lakhs. With growing investor confidence, the market is expected to continue its upward trajectory.
India’s Luxury Outlook Survey 2024 revealed that 71% of rich Indians plan to invest in real estate within the next 12-24 months, indicating a strong confidence in the property market. Capital appreciation has become the primary motivation for real estate investment, signalling a return for investors. High-net-worth individuals and ultra high-net-worth individuals expressed confidence in the economy’s positive trajectory in 2023-24, compared to 59% last year. Additionally, 35% of holiday home buyers preferred Goa as a second home destination.
Mopa: A runaway success avenue for NRIs
Goa’s moderate climate, pristine beaches, unique blend of Indian and Portuguese cultures, vibrant festivals, and delectable cuisine have made it a top choice for NRIs seeking secondary residences or investment opportunities in India’s booming real estate market. In addition to Goa’s geographical attractions, the unprecedented infrastructure development in the region offers a myriad of reasons for nature lovers and real estate investors to fulfil their dreams with a peaceful mind. The Manohar International Airport in North Goa is a bastion of seamless connectivity and new development opportunities.
The rising charm of Goa has captured the attention of the NRI (non-resident Indian) diaspora looking for a second home or investment property like never before, and it’s influencing the housing trend in the state. This trend has given rise to luxury villas, modern condominiums and upscale developments that cater to the discerning tastes of NRIs. Moreover, many NRIs are also choosing to return to their roots, making Goa their permanent home, which further contributes to the state’s diverse and dynamic housing landscape.
Future is paved with gold
Goa has been witnessing remarkable returns on investment (ROI) in its residential real estate sector. State’s booming tourism industry, combined with a steady influx of tourists and expatriates, has made property investment in Goa lucrative. The potential for high rental yields and capital appreciation has made it an attractive destination for property investors. Moreover, progressive government policies ensure ease of doing business, transparent regulatory framework, and initiatives to streamline the real estate sector. Affluent Indians express confidence in the market’s potential, and Goa’s appeal as a preferred destination among NRIs leads to upscale properties. All these positive factors have instilled confidence in investors, making Goa an increasingly preferred destination.