Source: CNBCTV18 ( https://bit.ly/3CzBH35 )

Goa is known to offer a local heritage living experience to city dwellers. Some people looking to buy homes here are looking at working permanently from a more scenic location. This is leading to prices soaring in some micro-markets of Goa.

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.

In fact, the demand for homes in tourist and secluded places of Goa has picked up three times since the COVID-19 hit. This demand is driven by salaried service sector employees from cities such as Bengaluru, Hyderabad, Pune and Mumbai, and businessmen who are shifting their base to Goa. The Work From Anywhere (WFA) culture has made many window shoppers, serious buyers of homes in Goa.

However, trends in the real estate market of Goa are changing. Earlier, people bought homes in Goa to rent out to tourists or to spend holidays. They are now buying homes as the need for a perfect work-life balance away from metros. They seek a second ‘first’ home in a peaceful location that may become the first home in the near future.

For buyers and investors who are looking at holiday homes that offer more than just a weekend getaway, Goa is emerging as an ideal choice. It offers a good lifestyle, culture, value for money and better rental yields. Additionally, with so many developers and investors involved, the second-home market in Goa, to a great extent, is immune from recession.
The changing dynamics of the second home market in Goa
Goa is known to offer a local heritage living experience to city dwellers. Some people looking to buy homes here are looking at working permanently from a more scenic location. This is leading to prices soaring in some micro-markets of Goa.

Several property developers capitalising on the growing market by selling apartments that range from Rs 60 lakh to Rs 2 crore, villas that range between Rs 3 crore and 6 crore, and plots that cost anywhere between Rs 1.5 crore and 5 crore, in South Goa and North Goa.
The rental market dynamics are also changing in Goa. Landlords are not keen on longer leases. They prefer shorter leases as they are earning more from them in a dynamic market.

Investors are yielding good rentals from villas, apartments and homes in gated communities and even secluded spaces. The homes that were 40 percent occupied most of the year now stand at 60 percent occupancy. Hence, while rentals have not significantly increased, rental yields have. Additionally, properties near a beach or a garden demand 5-10 percent higher rentals than the market rate.
The market is evolving with the changing mindset towards holding a second home. Buyers are now looking at it for Return on Investment (ROI), for providing a peaceful environment for work and letting them enjoy holidays at their own home.

This evolution of the market and the growing popularity of Goa as a second home and workcation destination will facilitate a better appreciation of properties in the coming years. Hence, it is important to spot the trend now.
But, before buying, one should do proper due diligence. It is important to invest in a location and a property that has sufficient resale value and is easier to maintain. More so, one also needs to review the locality and property, not just in terms of just price but also in terms of accessibility to supermarkets, labour, grocery stores and restaurants.

One needs to thoroughly evaluate whether a property is right for ones’ need and achieves the end goal of buying that property in the short and long term as well. Whether it’s a resale property or a developer’s property, ready to move in or under construction, what matters the most is whether it’s the right one to match your goal.
It is important that one does not evaluate a property only from the prism of price and budget as that may lead to incorrect decisions at times. The old adage ‘There ain’t no such thing as a free lunch’ holds true especially while buying a home outside your home state or city.