Goa witnessed an uptick in demand for second home purchases, given its high rental yield.
Goa has become a favourite destination for people planning to buy their second homes as it has high rental yields, from 4-10 per cent, according to global property consultant Savills. The most favoured location is North Goa’s coastal belt spanning Candolim to Vagator.
Savills India has observed that demand for rented villas in gated communities and independent homes in Porvorim, Parra, Assagaon, Saligao, Anjuna, and Siolim areas has increased. The rates range from Rs 15,000 to Rs 100,000 per night, depending on the room size and villas.
Shveta Jain, managing director 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."
The rentals per night and occupancy have increased by 25-30 per cent, driving yields higher from 4 per cent to around 8 per cent in some places.
"Keeping up with the demand for homes in Goa, we are back with the second edition of Savills Home Fest Goa, where we curate the best of newly launched and pre-owned homes while also providing professional advice to prospective homebuyers," added Jain.
Savills has noted that Goa has attracted many investors looking to buy vacation or holiday homes over the years. Business leaders, industrialists, new age entrepreneurs, media & film industry honchos, hospitality owners/micro-entrepreneurs, and NRI 's from London, Europe, Singapore, the US, Dubai, and the Middle East have thronged to this picturesque tourist hotspot to own a second home.
Additionally, Savills India noticed many high net-worth individuals (HNIs), salaried upper-middle-class, and service-oriented industry professionals investing in the tropical state.
Goa witnessed an uptick in demand for second home purchases throughout the pandemic, given the benefits it offers homebuyers, including high rental yields, in the long term.
"More importantly, the need for quality air, water, food, proximity to a cross-cultural environment, and an overall improved lifestyle has drawn many homebuyers to Goa," Said Savills India.
Several property developers are capitalising on the growing market by selling villas in gated communities with a carpet area of 1500 sq ft to about 4500 sq ft, depending on the number of
rooms, with the average plot size from 2000 sq ft to approximately 8000 sq ft. These villas typically range from Rs 3 crore to 12 crore, depending on the property size.