With the changing trends in the real estate market, Goa’s real estate market is also changing. Previously people used to purchase properties and houses to rent them out to tourists or only to spend their vaccinations. But now people are buying homes in Goa in search of a perfect work-life balance in their lives.
Many of us have deep desire to buy an alternate house in our favored tourist destination. More so, due to the pandemic situation, anyone who can afford a second house does want one away from the noisy and overcrowded cities. With the work going digital and with the work from home culture increasing, all those who work from home and those who have the luxury to log in from anywhere are moving towards purchasing homes in Goa, a very popular and scenic tourist destination. People are preferring to choose their house in a location where they can enjoy their life in a Covid situation also. They seek a second ‘first’ home in a peaceful location that may become the first home shortly.
With the changing trends in the real estate market, Goa’s real estate market is also changing. Previously people used to purchase properties and houses to rent them out to tourists or only to spend their vaccinations. But now people are buying homes in the locations of Goa in search of a perfect work-life balance.
The fact is, since the Covid-19, the demand for houses in tourist places of Goa has increased three times or even more and this demand is mainly from the professionals working in IT sector and service sector most of whom have been residing in cities like Bengaluru, Hyderabad, Pune, and Mumbai. There is demand by many businessmen as they are shifting their base to Goa because of The Work From Anywhere (WFA) culture.
For homebuyers and investors who are looking at holiday residences that deliver more than just a weekend break out, Goa is appearing as a favorable choice. It provides an excellent lifestyle, culture, worth investing, and better rental yields. Moreover, with various developers and investors involved, the second-home market in Goa, to a tremendous extent, is released from recession.
The transforming dynamics of the second home market in Goa
People want a home in Goa to work from a beautiful location and Goa is also known to offer local heritage living experience to city dwellers. This is leading to prices soaring in some micro-markets of Goa. Several property developers capitalize 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 crores, and plots that cost anywhere between Rs 1.5 crore and 5 crores, in South Goa and North Goa.
In the dynamic market of Goa, the rental market is also modifying. Landlords in Goa are not interested in providing houses for longer leases. They choose smaller rent-out as they are making more money from it in the vibrant market. Investors are generating favorable rentals from mansions, flats, and residences in gated societies and even secluded areas.
Previously the residences that were 40 percent acquired now continue at 60 percent possession. Therefore, while rentals have not considerably increased but rental yields have. Additionally, properties near a beach or a garden demand 5-10 percent higher rentals than the market rate. The market is growing with the changing viewpoint towards keeping up a second dwelling as their dream house. Customers are now looking at it for Return on Investment (ROI), for delivering a gracious atmosphere for work and allowing them to enjoy holiday in their own house.
It is important to spot the trend which is going in the market. The advancement of the real estate market and the rising preference of Goa as a second home and work spot will promote a generous consideration of properties in the prospective years. But, before buying, one should perform adequate due diligence. It is significant to invest in a locale and an estate that has adequate resale value and is simpler to conserve. More so, one also requires to examine the area and residence, not just in terms of cost but also in terms of reachability to supermarkets, shops, and cafeterias.
One has got to thoroughly analyze whether a property is good for one’s requirements and access the future aim of buying that estate in the short and long term as well. A person who is buying mustn’t examine a property only from the aspect of price and reserve as that may lead to incorrect judgments at times.
First Written By: Shveta Jain
First Published on Aug 19, 2021, 08:50 PM IST