Nestled on India's western coast, Goa has always been a popular destination for tourists and locals alike. With its pristine beaches, vibrant night-life, and rich cultural history, it's no surprise lately, Goa has become a sought-after location for luxury home, vacation homes and second homes. As per an industry survey, as many as 35% of holiday home buyers prefer Goa as a second home destination, highlighting its appeal among India’s rich population.
One of the main factors making Goa an ideal location for a vacation home is its lush landscapes and beaches with relaxed lifestyle and picturesque surroundings that provide a serene environment for an escape from hustle & bustle of city life. In addition, the improved infrastructure and connectivity with other major cities has added to its attractiveness as a destination for luxury second homes. Enhanced road networks, improved air connec- tivity and planned developments, have made the state more accessible than ever.
Top Property Picks
Luxury Villas: One of the most sought-after property types among HNIs in Goa is luxury villas. These villas often come equipped with state-of-the-art amenities such as private swimming pools, landscaped gardens, and spacious terraces offering panoramic sea views. The architecture typically blends modern design with traditional Goan elements, creating a perfect fusion of luxury and comfort.
Beachfront Apartments: For those who prefer something more modest yet equally luxurious, beach- front apartments in high-end gated communities are highly attractive options. These properties offer direct access to the beach, along with perks like 24/7 security, gyms, spas, and concierge services. The convenience and exclusivity make beach- front apartments a popular choice among HNIs. For even more dis- cerning, plush penthouses in prime locations like Panjim or Margao offer a great alternative. These properties come with all modern amenities including rooftop gardens, Jacuzzis, private elevators, and intelligent home systems.
Heritage Homes: Another unique segment attracting HNI’s interest is heritage homes. These century-old Portuguese-style villas have been restored to preserve their historical charm while incorporating modern amenities. Owning a piece of history appeals to many affluent buyers who value culture and tradition.
Real Estate Potential For Developers
While, the local developers are upping their game to cater to the influx of HNI homebuyers, many major realty firms from across India too are foraying in Goa, develop- ing luxury residential projects. For instance, DLF has unveiled luxury villa projects in Goa, set at prices ranging from $5 million to $6 million, targeting the elite market, as per media sources.
Tata Housing & Infrastructure Ltd latest project in Goa, Tata Rio De Goa presents contemporary apartments equipped with state- of-the-art amenities.
South India based Puravankara Limited project 'Adora de Goa' in Dabolim brilliantly fuses Portuguese architectural themes with modern amenities and offers fully furnished condos accompanied by concierge services, infinity pools, sky cafes, and vibrant tropical gardens. Mumbai based developer Sun Estates has introduced two prestigious projects— Sol Reserve and Saipem Hills 2, designed by Singapore-based architect BLINK, according to the company.
These are just few of the examples of developers from across other Indian cities that are on acquisition spree in Goa. Many developers from Delhi, Mumbai, Bengaluru have an- nounced projects in Goa. As one of the Noida based developer with soon to come up luxury residential in Goa stated, “The sustained expansion of the Goa market can largely be attributed to the rising demand for upscale properties and commercial spaces.”
As a matter of fact, Goa is more than just a second home market. The luxury properties also cater to the affluent local population and investors who seek returns. For ex- ample, the cost of the villa v/s the returns are almost 7% which is unlikely in other cities. The developers further inform that Goa’s thriving tourism industry is a key factor con- tributing to its real estate appeal. As the tourism sector continues to grow, investors see the potential for robust returns on their real estate invest- ments in Goa’s luxury developments. Some of the other real estate devel-opers offering premium projects in Goa include, Models Group, Yugen Infra, Acron Developers, Duville Es- tate, Quattroporte Luxury Homes, Bennet and Bernard, Riviera Group, Manas Developers, among others.
Investors From Mumbai To Miami
Over the past decade, there has been a significant shift in the demographics of those purchasing high-end real estate in this coastal state. Recent surveys indicate that affluent individuals from cities such as Mumbai, Delhi, and Bangalore are investing in luxury properties in Goa.
It's also interesting to note that the pandemic has had an intriguing impact on luxury housing market segment. The work-from-anywhere culture has driven wealthy profes- sionals and entrepreneurs from across India to seek serene locations where they can balance work with leisure. A study by Knight Frank India highlights that post-pandemic demand for second homes soared by 30%, and Goa ranked among the top three destinations.
Breaking down the economic strata of these buyers, a substantial portion belongs to the high net-worth individual (HNWI) category. HNWIs typically have assets exceed- ing $1 million and are often on the lookout for properties that promise both exclusivity and substantial returns on investment. India Sotheby’s International Realty report reveals that 55% of such individuals have shown serious interest in purchasing second homes in coastal regions like Goa.
Non-resident Indians (NRIs) form the other significant buyers’ segment that is investing in Goa luxury properties. NRIs mostly from countries like the USA, UK, and UAE are increasingly investing in Goa’s luxurious real estate market. Statistics from the Ministry of External Affairs indicate that NRI investments in India’s real estate increased by 12% in 2021 alone, with Goa being one of the prominent choices.
Goa’s Top Residential Areas
You may find many luxury properties situated in Assagao, Candolim, Calangute and Anjuna areas. Assagao, also known as the Beverly Hills of Goa is renowned for its af- fluent crowd and high-end villas. Surrounded by lush greenery, this area is perfect for those seeking tranquillity paired with luxury.Candolim with pristine beaches and upscale resorts, offers some of the most luxurious properties in Goa, especially if you are looking for extravagant beachfront homes.
Calangute and Anjuna are tourist destinations and have pockets of high-end real estate locations that offer stunning views of the Arabian Sea and boast of some opulent heritage villas and modern homes that cater to the elite.
Some other upscale locations for premium properties are Saligao, Siolim, Porvorim and Mapusa. Located near the state capital Panaji, Porvorim has emerged as a preferred residential area with many luxury housing options. While, Saligao offers a blend of heritage and modern architecture, Siolim is known for its quaint charm and proximity to the Chapora River. A traditional Goan town known for its bustling markets, Mapusa is another affluent location to purchase a premium residence in Goa.
For those on budget, but still seek a piece of Goa’s paradise can explore more affordable residential locations such as Ponda, Vasco da Gama and Margao. Known for its cultural heritage, Ponda provides budget-friendly housing options amidst a serene environment where- as another of Goa's major cities, Vasco da Gama offers good con- nectivity to other parts of the state. The commercial capital of South Goa, Margao presents attractive housing potions without compromising on amenities.
Future Trends And Projections
The luxury housing sector in Goa has seen substantial growth recently. Knight Frank India's analysis reveals that luxury property prices have risen by 8-10% annually over the past five years. This surge is fuelled by wealthy buyers seeking vacation homes and NRIs investing back home. Moreover, Goa's luxury rental yields are promising. Likewise, PropTiger data shows an average
rental yield of 3-4% for high-end villas and apartments, outpacing other Indian coastal regions. Thanks to year-round tourism sparked by festivals and events, short-term vacation rentals boast even higher returns, averaging 5-6%.
Looking ahead, the ongoing infrastructure developments will further improve accessibility and drive-up real estate values. JLL India predicts properties near infra proj- ects could see a price appreciation of up to 12% by 2024.
Besides, the Ministry of Tourism has projected a 15% annual rise in international tourist arrivals in the next few years, boosting property values as investors see Goa as a long-term asset.
Furthermore, Goa's real estate market is anticipated to remain steady given that the Goan government has introduced investor-friendly policies to attract more investment into the state that will create more job opportunities and business growth. The increase in economic activities is likely to have a favourable effect on the real estate market, making it even more appealing than just as a secondhome or rental market.
Recent surveys indicate that affluent individuals from cities such as Mumbai, Delhi, and Bangalore are investing in luxury properties in Goa. It's also interesting to note that the pandemic has had an intriguing impact on luxury housing market segment, driving wealthy professionals and entrepreneurs from across India to seek serene locations where they can balance work with leisure.
As a matter of fact, Goa is more than just a second home market. The luxury properties also cater to the affluent local population and investors who seek returns. With growing investor confidence, Goa’s property market is expected to continue its upward trajectory with major real estate firms acquiring land in the state.
