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Villa prices in Goa's Siolim, Assagao akin to those in South Delhi, Mumbai

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.

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Sunainaa Chadha NEW DELHI
Goa is witnessing a surge in popularity not just for vacations, but also as a second home destination. This trend is driven by high rental yields, a growing preference for gated villas, and a demographic shift towards younger, lifestyle-focused buyers.

Real estate consultancy firm Savills India reports rental yields ranging from 5% to 8% for second homes in Goa, making it an attractive investment proposition. Gated villas along the coast, particularly those sized between 2,000 and 4,000 square feet with 3-4 bedrooms, are in high demand. Reputable developers like Isprava Homes and Vianaar Homes are catering to this growing market.
 

In Goa, independent villas begin at Rs 6 crore

The supply of villas in Goa has shifted, with the standard size decreasing from 500 sq meters to 250 sq meters 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 meters, 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 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," the consultancy firm said in a note.

Capital values (in INR per sq. ft.) for villas:


The rise of asset management firms and hospitality operators offering property management services is enticing a new breed of second-home buyers – retail investors seeking both rental income and potential capital appreciation. Goa is no longer just a retirement haven or a seasonal escape. Younger professionals, especially those from major cities like Mumbai, Delhi, and Bangalore, are drawn to Goa's laid-back lifestyle and work-from-anywhere possibilities. Many of these new residents work in creative fields or are digital nomads seeking a better work-life balance.


Before zeroing in on a property in Goa, buyers should keep these important points in mind:

Stamp Duty: Unlike some states, Goa does not offer any waivers on stamp duty for female owners or joint owners. The stamp duty is levied based on a slab system, meaning the cost is dependent on the property value.

Title Verification: It's crucial to have a legal expert thoroughly vet the property title. Many land parcels belong to local Goan families and the Church, and ensuring clear ownership is essential.

Coastal Regulation Zone (CRZ) Norms: For sea-facing properties, be aware of CRZ regulations. Ensure the property adheres to the mandated setback of 500 meters from the coast.

Popular Destinations and Investment Potential:

Popular destinations in North Goa, like Anjuna, Assagao, Siolim, and Morjim, are favored for their easy beach access, vibrant cafes and restaurants, and strong rental markets. These are also easy to buy, rent, and flip. A 3BHK luxury property can set you back by Rs 5 crore to Rs 30 crore. 

Sea view properties can be significantly more expensive, exceeding Rs 2 crore.

North Goa is generally pricier than South Goa.

The recently opened Mopa airport is expected to boost property prices in North Goa and the Konkan region by 27-30% per year.

Renting out a second home in Goa can be quite lucrative. During the peak tourist season (December to January), a 3 BHK villa can be rented for Rs 35,000 per night, while a larger 6 BHK villa can fetch a whopping Rs 1.5 lakh per night. Even during the off-season, rental rates remain attractive, with 3 BHK villas fetching Rs 20,000 per night and 6 BHK villas going for Rs 80,000 per night.

Brokerage Commission: Expect a standard commission of 2% of the property cost charged by the broker to both buyer and seller.

Rental Agent Fees: If renting out the property, the agent may charge a commission from both tenant and owner.

Topics : Goa

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First Published: Jun 21 2024 | 9:39 AM IST

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