India’s wealthy elite are competing to acquire high-end properties in Goa as a means of enhancing their lifestyle. This trend is driving an increased demand for luxury villas, condominiums, serviced apartments, and second homes.
High net worth individuals are vying to own premium properties in Goa as a part of their lifestyle upgrade. This has fueled demand for luxury villas, condominiums, serviced apartments, second homes etc in the state.
Goa is emerging as one of the important destinations for the real estate market. Due to its beautiful coastline, low air quality index (AQI), and exceptional rental yields, the state is drawing a new demographic – young professionals looking for both lifestyle and profitable investments.
India’s luxury real estate sector is experiencing a growing demand due to changing consumer preferences and technological advancements. Besides, this overwhelming increase in spacious luxury houses is also attributed to the COVID-19 pandemic because people with high purchasing capacity seek liveable spaces with ample safety and amenity features.
One of the reasons for preferring Goa is higher rental yields compared to other parts of India. Residential yields are highest in Goa. While outside it’s in the range of 2-3%, in Goa, the yield is in the range of 5-6%, almost double.
Investments by non-resident Indians (NRIs) into the Indian real estate market has surged over the past 20 months, growing at 15-20 per cent and their share in total investments in the sector is expected to rise to a fifth from 10-15 per cent earlier. In 2023, NRIs invested over $13 billion in real estate and by 2025, their investments are expected to account for 20 per cent of total real estate investments in India.
Second homes are a compelling opportunity in Goa’s luxury real estate market. Not only are they generating attractive rental returns, but there’s also a surge in demand, particularly for gated coastal villas and large apartments with ample bedrooms. This trend is being driven by millennials seeking idyllic getaways and NRIs capitalising on currency advantages.
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.
Tourist destinations near beaches, hill stations, and non-metro cities with favourable climates, nature access, and proximity to the sea, countryside, or mountains are preferred places and being the real estate haven, Goa is the first love for connoisseurs investing in vacation homes as 35% of holiday home buyers preferred Goa as a second home destination.
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.