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 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.
Goa, once synonymous with sandy beaches, vibrant nightlife, and a quintessential escape for tourists, is undergoing a remarkable transformation. This coastal paradise is now a top choice for affluent Indians looking to invest in luxury real estate, shifting its identity from a mere vacation spot to a prestigious investment haven.
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.
Home prices in India are likely to increase by 4-6 per cent this year but rising per capita income will support demand. Moderating inflation, stable commodity prices, a lower fiscal deficit, and a decline in global policy rates would set the stage for interest rate cuts to boost housing demand.
After dabbling with artificial intelligence (AI), the Indian real estate sector is now shifting its focus to the metaverse. If the concept of metaverse successfully takes off, industry experts believe that the online homebuying process will undergo a revolution.
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.
Investment by non-resident Indians (NRIs) in India has revolutionized the Indian real estate industry over the last few years. Today, these investments are shaping the industry for the future and serving as a unifying factor for growth in the short and long run.
In 2024, India’s real estate market is experiencing a significant surge in interest from foreign investors. The nation’s burgeoning economy, coupled with policy reforms and infrastructural development, has positioned India as a lucrative destination for global real estate investment. Several key factors contribute to the growing appeal of India’s real estate sector for international investors.