Goa has long been a favourite vacation destination for Indians and foreigners alike. With its pristine beaches, laidback vibe, scenic locales, mouthwatering seafood, vibrant nightlife, and rich cultural heritage – Goa has something for everyone.
As per recent industry reports, real estate demand in Goa is on an upswing. Property rates have already seen an uptick of 10-15% in popular investment hotspots like Calangute, Candolim, Anjuna, Vagator, Morjim, Arambol and Palolem. Industry experts predict that rates will further rise by 15-20% in 2024 amidst strong demand from end-users, investors and NRIs.
So if you have been thinking about buying a vacation home in Goa, 2024 and the coming years present an attractive opportunity. Here are some top tips by Indian Estate Group (IEG), India’s leading Real Estate Company to help you invest smartly:
Focus on ROI Potential
When looking to buy a vacation home in Goa, it’s prudent to evaluate locations where tourism and rental demand will remain high well into the future. Some popular areas to consider from an ROI perspective include:
- Calangute/Candolim – The heart of North Goa’s beach belt, popular with domestic tourists
- Vagator/Anjuna – Draws international tourists with sandy stretches, beach shacks
- South Goa – Peaceful environment and less crowded beaches appeal to luxury travellers
Industry reports suggest these prime investment locations can fetch 8 to 10% ROI from rental income alone post-Covid revival. Property price appreciation will further sweeten returns over the long term.
Identify Upcoming Areas with Growth Potential
While North Goa remains the epicentre of tourism activity, South Goa offers opportunities to invest in upcoming destinations before prices escalate. Regions like Agonda, Colva, Majorda, Cavelossim, and Varca are seeing more resort and infrastructure development fueling demand for a home in Goa.
These areas are quieter and cheaper than the crowded northern beaches but offer easy access to seaside resorts, beach shacks, water sports, and other attractions Goa is loved for. Property prices in South Goa are roughly 20-30% cheaper than comparable options in North Goa currently making it a favourable place option to purchase a vacation home in Goa.
Places like Assagao, Aldona, Socorro, Saligao, and Siolim situated further inland also make for affordable property investment destinations. Improved connectivity via highways and roads has boosted accessibility and sparked a wave of gated community projects catering to upper-middle-class buyers.
Analyze Potential Rental Income
The first step when considering a vacation home in Goa is projecting potential rental income. Goa attracts over 7 million domestic and international tourists annually, fueling strong demand for short and long-term vacation rentals.
Properties near popular beaches like Baga, Calangute, Candolim, Anjuna, and Vagator tend to command the highest rental rates. A 2BHK apartment in these areas can be rented for ₹15,000-25,000 per night during peak seasons. Even studios and 1BHKs can fetch ₹10,000+ per night.
Beyond the rental income, capital appreciation on property prices in Goa has averaged 5-8% annually over the past decade. So the property can work both as a cashflow and investment asset.
Analyze Ongoing/Planned Infrastructure Developments
To identify emerging locations for purchasing a home in Goa with good rental demand potential for the future, analyze infrastructure projects underway along the coastline.
For instance, numerous road/highway expansion projects like the 4-laning of NH66 highway and new highway alignments will improve connectivity between the airport and popular coastal belts. The upcoming Mopa International Airport will also boost tourism inflows into North Goa when operational by 2024.
Areas falling en route these new travel corridors like Ashvem, Mandrem, Mapusa, and Porvorim, may appreciate well due to improved accessibility over the coming years.
Conduct Thorough Due Diligence
While identifying promising investment options, for your upcoming holiday home in Goa, thoroughly evaluate all details before purchasing instead of jumping in hastily. Scrutinize property papers, approvals and licenses to ensure clean ownership without disputes or acquisition risks. Opt for RERA-registered projects with clear titles to avoid legal hassles later.
Cross-check details like floor space index (FSI) utilization, number of allowed floors, pending dues, and electricity and water supply provisions. See if amenities like swimming pool, gym or clubhouse availability timeline aligns with promised dates.
Developing trusted relationships with local real estate brokers in Goa can help steer you away from fraudulent or legally risky properties too. Ultimately due diligence helps avoid getting stuck with a disputed vacation home asset that destroys ROI.
Evaluate Property Management Support
Managing a vacation rental home in Goa remotely can be complicated for out-of-state investors. Finding occupants, onboarding guests, ensuring maintenance, managing turnovers efficiently and regulatory compliance require local oversight.
Opt for projects with in-house property management services that can take care of your vacation home in Goa hassle-free as a value-added service. If investing independently, hire a reliable property manager to handle day-to-day oversight after doing due diligence on their capabilities.
Budget for Fluctuations in Occupancy
Being predominantly a vacation market, seasonal demand fluctuations are common in Goa. Occupancy levels dip during monsoons or peak summer months. So remember to account for some built-in buffer in your ROI calculations for your vacation home in Goa.
Also, budget additional funds for routine property maintenance expenses, annual upkeep, taxes, society charges, etc. to sustain occupancies long term.
Conclusion
In closing, a vacation home in Goa makes for an attractive real estate investment option aligned with India’s robust tourism growth. Conduct in-depth due diligence, identify upcoming destinations with infrastructure development on the horizon, and leverage professional property management to generate strong risk-adjusted returns.
Use the above property investment tips by Indian Estate Group (IEG) as guidelines for investing in Property in Goa in 2024 and beyond. Remember enriched lifestyle perks like extended stays during peak seasons make a vacation home in Goa worthwhile beyond just monetary returns! Additionally, Indian Estate Group (IEG) is the only company you need to contact if you need expert assistance purchasing your next vacation home in Goa. With so many alternatives available to you, Indian Estate Group (IEG) can help you locate the ideal home in Goa and help you make the investment of a lifetime in real estate. Some of the options include Apartments in Goa, Flats in Goa, etc. and that too in different locations and with varying price points to suit your diverse needs. Ready to live the Goan life? Connect with Indian Estate Group (IEG) today and make your home in Goa dream come true.
