Buying a home in the favoured tourist destination Goa was once an aspiration for India’s elite. Since the onset of the pandemic, it is emerging as a need for a second home away from overcrowded cities. Remote workers who are able to log in from anywhere are increasingly snapping up homes in Goa, sending second home purchases skyrocketing since last year.
Goa, the holiday paradise on earth has lately emerged as a holiday home and realty investment destination of India. Goa has consistently been a favoured vacationer goal for both domestic just as foreign visitors. Because of the development in the travel industry, the city has likewise risen as an investment destination for individuals for second home.
Today, the second wave of coronavirus has imbued uncertainty in the sector resulting in a temporary pause, but developers are now better prepared and well-versed with the know-hows of a pandemic. India’s resilient and burgeoning real estate segment has always remained an investor’s favourite, and one of the most sought-after realty markets globally.
In a move that is likely to breathe life into the real estate sector, chief minister Pramod Sawant on Wednesday announced that the infrastructure tax levied on the construction sector would be reduced by 30% for a period of six months from April 1. Sawant also promised to bring in “major reforms” in the functioning of planning and development authorities.
Owning a luxury holiday home in places like Goa is an increasing trend for buyers who look at it as a luxury living and also as a good investment option with better rental yields. Effects of the COVID-19 pandemic are abundantly visible across the various sectors of the global economy. India too witnessed a subjugation of macro indicators, that were once believed to be the fastest, and no sector was spared from the deluge of pandemic aftermath.
Over the last few months, enquiries for larger homes have increased up to 40% with property seekers predominantly scouting for 3-bedroom apartments with average 1,800 sq ft built-up area as against the previously-preferred 2-bedroom units, showed data from ANAROCK Property Consultants. The emergence and acceptance of the Work from Home model in the backdrop of the ongoing Covid-19 pandemic has led to increased demand for relatively larger homes. The new demand pattern is driven by homebuyers’ need to accommodate space for remote working.
While not many Indians are buying, developers have seen a spike in enquiries and demand from non-resident Indians in the ongoing financial year. Developers say a weaker rupee, return of several Indians from Middle East and lower interest rates for housing loans are some of the triggers. As many as 40,000 NRIs could be looking to purchase assets in India. If this demand gets converted into sales once travel curbs ease, this could be a “historical high”, he said.
Contrary to fears and low expectations, real estate in the post-covid world will most likely survive and eventually thrive as an asset class, though it will look different. Decentralization, redistribution and restructuring will be the major themes of this transformation. While it is early days yet, there are visible indications of some of the ways in which the pandemic may alter things for both consumers and developers. It is important to note that the winds of change have been triggered not just by the pandemic.