Source: The Economic Times https://bit.ly/3Zh6RZj

Goa has emerged as a preferred destination for second home buyers owing to high rental yields ranging from 4-10% approximately, according to property consultant Savills.

The trend is witnessed in the coastal belt of north Goa spanning from Candolim to Vagator.

According to Savills, 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 per night range from Rs 15,000 to even Rs 100,000 depending on size and rooms of villas.

The rentals per night and occupancy have increased by 25-30% approximately, driving yields higher from 4% to around 8% in some instances across micro-markets.

Throughout the pandemic, Goa witnessed an uptick in demand for second homes given the benefits a property of such nature offers to the owner/homebuyer – long-term end use, high rental yields, and usage as a first home are among a few.

The need for quality air, water, food, proximity to a cross-cultural environment, and an overall improved lifestyle has drawn many homebuyers to Goa. Several property developers are capitalising on the growing market by selling villas in gated communities with a carpet area of 1500 sq ft to about 4500 sq ft depending on the number of rooms with the average plot size from 2000 sq ft to about 8000 sq ft.

These villas typically range from Rs 3 crore to Rs 12 crore depending on the size of the property.

“Goa’s real estate market has been on a fast track mode in the post-pandemic phase. Holiday homes and villas have been one of the major drivers for this growth momentum,” said Aditya Kushwaha, CEO & Director, Axis Ecorp, which is executing a project near the upcoming airport.

There is a visible change in approach to buying a property in Goa whether it is an apartment or a villa, that suggests longer stays of 15 -30 days instead of the usual 3-4 day short-term stays. This only improves if homes are owned.

The New International Airport at Mopa, the northern-most tip of Goa, bordering Maharashtra, is slated to positively impact the development of infrastructure, hospitality and even the second homes sector around lesser frequented beaches like Morjim, Mandrem, and Arambol.