Attractive Investment in Gated Villas
Gated villas in Goa present a compelling investment opportunity for young professionals due to the segment’s attractive capital appreciation and rental yields. Grade A locations such as Anjum, Arpora, Baga, Calangute, and Candolim have reported a 22% capital appreciation in villa prices during the FY 2023-2024, despite the rental yields hovering around 5-8%.
Villa Pricing and Trends
According to data from Savills India Research, newly built villa properties in Goa are valued between Rs 7-10 crore, comparable to apartments in South Delhi and South Mumbai. Younger professionals are increasingly relocating to Goa from major cities like Bengaluru, Delhi, Mumbai, and other prominent urban centers. These new residents often work in creative industries or are digital nomads seeking a balanced work-life environment.
Buyer Profile and Motivations
Savills India’s research indicates that buyers are primarily individuals in their 30s to 60s, including business owners and salaried professionals. These buyers are attracted by the prospect of capital appreciation and rental returns, with gross yields of 10-12% annually. The data also shows that buyers of second homes are not just end users but also retail investors looking for both capital appreciation and rental income. Asset management companies and hospitality operators managing individual properties have further boosted this trend.
Popularity of Gated Villas
Gated villas with three to four bedrooms and sizes ranging between 2,000 and 4,000 square feet are gaining traction, according to Savills India. The plot sizes of these projects typically vary from 190 to 400 sq m.
Impact of Land Costs
Due to rising land prices, the standard size of villas in Goa has decreased over the past five years from 500 square meters to 250 square meters. Premium views are becoming rarer, and investment goals frequently supersede end-use objectives. Assagaon and Siolim are favored by lifestyle-conscious buyers who prioritize address and quality over beach access, though beach proximity remains desirable.
Average Home Sizes
While larger properties are available in emerging areas, the average size of homes in prime locations has decreased to 300 square meters. The data differentiates between two main buyer categories: end-users, professionals, industrialists, and those aiming to deploy capital gains, and investor-aspirational buyers.
High Rental Income
High rental income from vacation rentals in popular micro-markets offers investors a competitive return on investment and a stable income. Families and groups increasingly choose private villas for their stays.
Capital Value Comparison
During the fiscal year 2023-2024, villa prices in Grade A locations such as Anjum, Arpora, Baga, Calangute, Candolim, Vagator, Morjim, Assagao, Siolim, Mapusa, Pilerne, Reis Margos, Caranzalem, and Dona Paula increased by 22%. The average capital rate in Q2 2024 was about Rs 25,504 per square foot, up from Rs 20,914 per square foot in Q2 2023 and Rs 15,6667 per square foot in Q2 2022.
In the 2023-2024 period, prices at Grade B locations like Aldona, Moira, Nachoinola, Panjim, Chapora, Nerul, Mandrem, Parra, Saligao, Verla Canca, Saipem, Guirim, Tivim, Bicholim, Penha de Franca, Sangolda, and Bambolim rose by 30%. The cost per square foot in Q2 2023 was Rs 17,286, escalating to Rs 22,410 per square foot in Q2 2024, compared to Rs 14,564 per square foot in Q2 2022.
Goa Home Fest 3.0
As part of Goa Home Fest 3.0, a platform is offered where sellers can showcase their top properties, and buyers can find properties that suit their needs. It includes more laid-back coastal areas like Nachinola, Moira, and other North Goa neighborhoods, alongside upscale locations like Anjuna, Vagator, and Candolim. This event also features ready-to-move-in and under-construction homes in Goa. Shveta Jain, MD of Savills India’s Residential Services, notes that the showcase highlights Goa’s rich history, culture, and unique properties such as independent bungalows and Portuguese homes.
Growth in Commercial Real Estate
Goa’s commercial real estate market is also experiencing growth, in tandem with its expanding tourism sector.