Goa has emerged as a destination of choice for buyers of second homes that generate high rental yields ranging from 4 to 10 percent, especially along the northern coastal belt from Candolim to Vagator, an analysis by an international consultancy showed.
Rentals and occupancy have increased by 25-30 percent, driving yields higher – from 4 percent to about 8 percent in some instances across micro-markets, Savills India said.
Rental yield is the annual rental income received from a property as a percentage of the asset’s value. The average yield from residential property in India is 1.5-3 percent.
The new international airport at Mopa, at the northernmost tip of Goa, bordering Maharashtra, is slated to positively impact the development of infrastructure, hospitality and even second homes in and around less popular beaches such as Morjim, Mandrem and Arambol.
Improved accessibility to villages from Siolim to Tiracol will help develop these areas, given that a chunk of the commercial air traffic will gradually move from the current airport in south Goa to the northernmost part of Goa, said Shveta Jain, MD, residential services, at Savills India.
More than 200 acres have been earmarked near the airport to be developed into residential, commercial and logistics projects.
Growing market
According to the consultancy, individuals are opting for rented villas in gated communities as well as independent ones across Porvorim, Parra, Assagaon, Saligao, Anjuna and Siolim, where the rates range from Rs 15,000 to even Rs 1 lakh per night, depending on the size and number of rooms.
Throughout the pandemic, there was an uptick in demand for second homes in Goa, given benefits such as long-term end-use, high rental yields, and usage as a first home, it said.
The need for quality air, water, food, proximity to a cross-cultural environment, and an overall improved lifestyle drew many homebuyers to Goa. Property developers are capitalising on the growing market by selling villas with a carpet area of 1,500 square feet to about 4,500 sq. ft. in gated communities. The rate depends on the number of rooms and the plot sizes range from 2,000 sq. ft to 8,000 sq. ft. These villas typically cost Rs 3 crore to Rs 12 crore, depending on the size of the property.
People who buy second homes in Goa – whether it is an apartment or a villa –now prefer longer stays of 15-30 days instead of the usual 3-4 days, the consultancy said.
Savills India estimates a more than 50 percent increase in demand for property in Goa, with the popular micro-markets being Pilerne, Parra, Assagaon, Nerul, Calangute, Porvorim, Siolim, Anjuna, Mandrem and Saligao.
Over the years, Goa has attracted investors looking to buy vacation or holiday homes. Business leaders, industrialists, new-age entrepreneurs, media and film industry honchos, hospitality owners/micro-entrepreneurs, and NRIs from London, Europe, Singapore, the US, Dubai, and the rest of the Middle East have thronged to this picturesque tourist hotspot to own a second home.
The profile of buyers has changed too, with HNIs, the salaried upper middle class, and service-oriented sector professionals investing in the tropical state, it noted.
“Goa piqued the interest of homebuyers even before the pandemic. Goa has attracted many investors looking to buy second homes or holiday homes as they generate good rentals and offer a good quality of life,” said Jain.
The consultancy plans to hold the second edition of the Savills Home Fest Goa, which will bring together resale villas, independent villas, and apartments in gated communities spanning new launches as well as last-mile inventory of developers such as Linc Property Developers, Veera Group, Anokha Estates, Oikos Ventures and MVR Homes.
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