As the idyllic centre with a long coastline to boast of, Goa is a growing city with a difference. The city is home to thousands of foreign tourists every year and a hotbed of real estate investment destination for residents, nationals as well as NRIs. Foreigners too evince keen interest to invest in real estate here.
Goa is now gearing up for a turnaround in development aggravated earlier by the slowdown in economy and high home loan lending rates. There is no denying that the city has been notching up a growth rate of 8-10 per cent in terms of capital values for residential properties every year. After reaching a dizzying high in 2007-08 due to the inflow of huge investments in real estate by multiple investors, prices are stabilising now.
An estimated 10 leading developers are driving the residential and commercial property development in Goa now.In North Goa, Landscape, Kamat, Models, Aldiea de Goa, are just to mention a few. In South Goa, Commonwealth Developers is topping the list, followed by Akar, Kurtarkar, Nanu etc., DLF, Prudential Group are in both North and South Goa. This is apart from smaller players like Heritage, Reira and Nirvana.
According to industry sources, once the new Regional Plan 2021 due in mid-2014 is released, there will be a major overhaul in the real estate market. It is expected that the regulations would plug the loopholes leaving way to developers who are compliant with prescribed regulations and honour commitments to buyers.
Among factors that would contribute to the growth of infrastructure include the recently held Lusofonia Games and the upcoming National Games. These have led to renovating existing sports facilities and constructing some new facilities. The government is also planning to boost the tourism sector by improving facilities with construction of new hotels, boosting the transport system and introducing helicopter tourism in future. The new international airport proposed in Mopa in North Goa is expected to lead to more real estate development in the vicinity.
The demand for housing is equally shared by both residents and NRIs depending on the category of real estate. Apartment and row-houses are driving demand among middle class people whereas high end villas are predominantly driven by investors or HNIs who want to make Goa their second home.
Plotted development projects are driving continuous demand as investors wish to use that option in order to have a hedge against inflation. While end users dominate the market, areas such as Calangute, Baga and Arpora are sought after by investors.