Goa Realty market upsurges with pool of investment from the young professionals

The residential market of Goa tends to upsurge with the price of property soaring high. Young professionals are finding it very attractive to invest  in gated villas in Goa because the segment offers attractive rental yields and capital appreciation. 

According to the market report, the return on rental is ranging between 5-8% approximately, Grade A locations such as Anjum, Arpora, Baga, Calangute, Candolim have witnessed a 22% capital appreciation in villa prices in the FY 2024-2023. 

According to the research data by Savills India Research  showed that, the prices of some of the new villa properties in Goa compare with apartments in South Mumbai and South Delhi that are priced between Rs.7-10 crore.

The young investors from the metro cities are moving towards of the cities like Mumbai, Delhi , Bengaluru, and recently they started moving to Goa.  The data depicts that, the young professionals are actively engaged with in creative fields or are digital nomads seeking a strike a better work-life balance.

Savills India's research expressed that, the buyers of these properties are belonging to the age group of 30-60 including both salaried professionals and businessmen. The buyers are dragged by the rental returns and capital appreciation, achieving gross yields of 10-12% per annum for wealth diversification.

The recent trend that is prevalent in the market is choosing the gated community long the coastal belt, with sizes ranging from 2,000 to 4,000 sq. ft. for 3-4 bedroom units. Plot sizes for these gated villa projects vary from 190 to 400 sq m.

The report also showed that, The supply of villas in Goa has shifted, with the standard size decreasing from 500 sq meters to 250 sq meters over the past five years due to rising land prices.

The report highlighted that, vacation rentals in popular micro markets yield high rental income, providing competitive ROI and steady income for investors. Demand for private villas, favored by families and groups, is upsurging.

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 have witnessed a 30% change in prices in the 2024-2023 period. The rates prevailing in Q2 2024 were around Rs.22,410 per sq ft and Rs.17286 per sq ft in Q2 2023. The rates for villa properties in Q2 2022 were at Rs.14,564 per sq ft.

The data showed that, as Goa continues to be the prime tourist destination, its residential and commercial market will continue to rise.