Second homes are a compelling opportunity in Goa’s luxury real estate market. Not only are they generating attractive rental returns, but there’s also a surge in demand, particularly for gated coastal villas and large apartments with ample bedrooms. This trend is being driven by millennials seeking idyllic getaways and NRIs capitalising on currency advantages.
Indian housing sector saw growth in sales and launches in FY23-24, but affordable housing segment declined post COVID. What is need is reviving incentives like credit-linked subsidy scheme and 100% Tax Holiday for developers to stimulate demand and supply in affordable housing sector.
Young professionals find the Goa market attractive for property investment; Gated villas in Grade A locations command a rental yield of 5-8%. Buyers for second homes are not only end buyers but retail investors seeking both rental returns and capital appreciation.
India’s real estate market is witnessing a seismic shift, with the luxury housing segment experiencing an unprecedented surge in demand. Factors such as rising incomes, growing aspirations for upscale living, and a preference for modern amenities have propelled this transformation, resulting in a boom in luxury home sales across the country.
India’s real estate market boom is still a few years away from peaking. But the cycle’s longevity could turn on a few factors, good and bad, say realty experts. It will hinge on not just a more widespread demand for homes and offices but also smart supply and price management by the country’s top developers.
India’s affluent class has been increasingly redirecting their investment focus towards residential real estate for some time, marking a notable change in the country’s investment landscape. This transition emphasizes changing trends in investment preferences and reflects the motivations driving the elite’s choice to invest in residential properties.
Demand for bigger homes remains strong even now despite rising prices with nearly 50% respondents preferring to buy a 3BHK home, followed by 38% for 2BHK. At least 46% respondents now prefer to buy homes priced >INR 90 lakh.
Industry reports project that the Mopa airport will attract investments of Rs 2,700 crore by 2030, focusing primarily on the development of luxury and eco hotels, nature and wellness resorts, and homestays. This influx of investment is set to diversify the region’s tourism and real estate landscape significantly.
The inauguration of the new International Airport at Mopa, Goa also led to an increase in tourism, thus impacting the demand for vacation rental homes, hotels, and stay options in Goa. Capital values in surrounding areas have thus doubled in the last three years.
The household sector plays a major role in the Indian economy by serving as a primary source of financial resources through savings, contributing a substantial 70% to the total gross domestic savings.