![As Goa continues to grow and attract tourists, its commercial property market has also been on the rise. (Representative image) As Goa continues to grow and attract tourists, its commercial property market has also been on the rise. (Representative image)](https://images.news18.com/ibnlive/uploads/2021/07/1627283897_news18_logo-1200x800.jpg?impolicy=website&width=510&height=383)
As Goa continues to grow and attract tourists, its commercial property market has also been on the rise. (Representative image)
The supply of villas in Goa has shifted, with the standard size decreasing from 500 sq metres to 250 sq metres over past five years due to rising land prices.
Goa has emerged as a destination of choice for second-home buyers owing to high rental yields ranging from 5-8% approximately. Real estate consultancy Savills India, in a report, witnessed a decisive trend where individuals are choosing gated villas along the coastal belt, with sizes ranging from 2,000 to 4,000 sq. ft. for 3-4 bedroom units.
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According to the latest assessment by Savills India, plot sizes for these gated villa projects vary from 190 to 400 sq. mtr.
The Goa Factor
With the advent of asset management firms and hospitality operators managing individual homes, buyers for second homes are not only end buyers but retail investors seeking both rental returns and capital appreciation.
Also, at one point Goa was primarily known as a retirement destination for older generations or just a holiday destination. However, recent trends show a shift – younger professionals, especially from major cities like Mumbai, Delhi and Bangalore and other prominent cities are now moving to Goa. These new residents often work in creative fields or are digital nomads seeking a better work-life balance.
The supply of villas in Goa has shifted, with the standard size decreasing from 500 sq metres to 250 sq metres over the past five years due to rising land prices. Premium views remain desirable but scarce, and investment motives now often outweigh end-use objectives.
While beach proximity is still preferred, locations like Assagaon and Siolim attract lifestyle-conscious buyers who prioritise address and quality over beach access.
The average home size in prominent locations has fallen to 300 sq metres, while emerging areas still offer larger properties.
There are two main buyer categories: investor-aspirational and end-user, including professionals, industrialists and those seeking capital gains deployment.
Vacation Trends
Vacation rentals in popular micro markets yield high rental income, providing competitive ROI and steady income for investors. Demand for private villas, favoured by families and groups, is rising.
Savills India’s research indicated that buyers are primarily individuals aged 30-60, including both salaried professionals and businessmen. These buyers are attracted by rental returns and capital appreciation, achieving gross yields of 10-12% per annum for wealth diversification.
Currently, it can be noted that premium gated villas in locations like Assagao and Siolim are priced equivalent to the homes in grade A locations in South Delhi and South Mumbai.
Goa Commercial Property Trends
As Goa continues to grow and attract tourists, its commercial property market has also been on the rise. The combination of work and leisure makes it an ideal location for setting up commercial office space in Goa, especially for sectors like hospitality, technology and creative services.
The appeal of the commercial property in Goa lies not only in their potential rental yields but also in their long-term value appreciation. As the state’s economy diversifies and its infrastructure improves, the demand for commercial property for sale in Goa is expected to grow, making it a favourable investment choice.
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