High rental yield makes Goa the most preferred destination for a Second home: Savills India

Business

Goa (India), November 8: According to international real estate consultant Savills, Goa has become a favourite location for people looking to purchase a second home because of its high rental yields. The report also adds that this rental yield ranges from 4 to 10%. Goa is known for its pristine beaches, party vibe, nightlife, local markets and food.

While many are drawn to Goa for these reasons, there are others who are now flocking to the state seeking tranquillity and peace. The villages of Goasuch as Assagao, Siolim, Saligao, and the river islands like Diwar and Chandor offer plenty of choices for these homebuyers.

Aditya Kushwaha, CEO and Director of Axis Ecorp, says, “Goa’s real estate market has been on a fast track in the post-pandemic phase. The state’s rich culture, beaches, architecture and natural beauty make it a top choice for buyers looking for a second home. Holiday homes and villas have been one of the major drivers for this growth momentum. The recent work-from-anywhere scenario has further increased the popularity of Goa as a realty destination. A fresh spike in real estate prices is expected shortly as the Goa International airport is nearing completion.”

Shveta Jain, managing director of Residential Services, Savills India, says, “Goa has piqued the homebuyers’ interest even before the pandemic. Goa’s serene charm has attracted many investors looking to buy second homes or holiday homes as they generate good rentals.”

There are several belts in Goa that have witnessed a surge in demand. North Goa’s coastal belt spanning Candolim to Vagator continues to be a hot favourite amongst homebuyers.

The Porvorim, Parra, Assagaon, Saligao, Anjuna, and Siolim districts have seen an increase in demand for independent residences and rented villas in gated communities, according to the report. Depending on the size of the room and the number of villas, the costs per night range from Rs 15,000 to Rs 100,000.

Industrialists, Business honchos and new-age entrepreneurs have been eyeing the high-end luxury properties and villas in the region. Apart from this, there is also increased interest from the NRI community. The upcoming International MOPA airport is also adding to Goa’s charm.

The nearby areas are also experiencing the ripple effect of the current boom and infrastructure development. Sindhudurg, situated on the Maharashtra-Goa border, has also been experiencing a spurt in demand. The rental yields in this region have appreciated in the last few months.

“Not just Goa, the prices in the nearby areas are also soaring. Sindhudurg has also emerged as a sought-after second home and nature resort destination. The average property prices in the past four years in Sindhudurg have grown at a CAGR of 6.8%, and it is expected to increase by 25-30% once the airport gets operational,” adds Kushwaha.

Axis Ecorp is betting big on Sindhudurg and has several big-ticket projects in the region, including Axis Blues, Axis Yog Villas and Axis Lake City. The company is also planning to launch new projects in the area soon.

People’s need for quality air, water, food, and proximity to a cross-cultural environment has driven them towards Goa and Sindhudurg. Real estate developers are also capitalising on the growing market. The asking price for a villa in gated communities ranges from Rs 3 crore to Rs 12 crore. The rate varies based on the plot size, amenities offered and the number of rooms.

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