Luxury Project Overview
DLF, a prominent real estate developer based in Delhi-NCR, is expected to launch 62 ultra-luxury villas in Goa during the second half of the 2024-2025 fiscal year. These villas will be priced between Rs 40 crore and Rs 50 crore each. The project is situated approximately 32 kilometers from the Goa International Airport in Dabolim, atop the hill of Reis Mago.
Project Details and Timeline
Ashok Tyagi, the managing director and chief financial officer of DLF, informed analysts on July 26 that construction of the Goa luxury residential project will commence in the September quarter. The project site is just 4 km away from Candolim Beach, 10 km from Baga Beach, and 12 km from Calangute Beach.
Market Trends and Buyer Intent
The definition of luxury homes has evolved over the past two years, with a marked increase in buyer intent. Goa has become a favored location for second homes due to a surge in luxury developments. Consequently, DLF announced its entrance into the Goa market earlier this year with a gated villa community project in Reis Magos, North Goa.
Aalkash Ohri, the joint managing director and chief business officer of DLF Home Developers, stated, "This will be DLF’s first ultra-luxury residential project outside of the National Capital Region (NCR) and will set a benchmark in the segment."
Real Estate Popularity and Demand
Real estate is gaining popularity among investors, especially for expensive vacation homes in remote locations away from cities. This trend has led to an increased demand for luxury real estate, particularly from corporate professionals, non-resident Indians, and the extremely wealthy. According to Sotheby’s International Realty (ISIR)’s Luxury Outlook Survey 2024, Goa’s appeal among India’s affluent is evident, with about 35 percent of holiday home buyers choosing the destination as a second home.
DLF’s Expansion Strategy
As part of their strategy to capitalize on the strong demand for luxury homes, DLF intends to offer approximately 37 million square feet of space for sale in multiple cities over the medium term, with a potential revenue of Rs 1.04 lakh crore. This was discussed in their latest briefing for the April-June quarter of FY25.
Investment Attractiveness
A recent research report by real estate consulting firm Savilla India indicates that young professionals find it appealing to invest in gated villas in Goa due to attractive rental yields and capital appreciation. Grade A locations like Anjum, Arpora, Baga, Calangute, and Candolim saw a 22% capital appreciation in villa prices in FY 2023-24, despite rental returns being between 5 and 8%.
Market Growth
Goa also ranked second in a report on the top 10 tier-2 cities’ real estate growth, with a 90% appreciation in launch prices of residential units in the second home destination over the previous five years.