Goa has gradually been gaining prominence as a second home market but with the real estate sector becoming more organised in this popular tourist destination, the awareness of prospective home buyers is also increasing. They want to be a part of the growth story as well, which is propelling a rise in home sales.
The holiday home market in India is growing at an average growth rate of 10-12 per cent over the last two years and 21 per cent of all real estate transactions comprised of vacation properties. Goa, one of the most popular tourist destinations in the country, forms a major chunk of this share. In fact, majority of the real estate transactions concluding across the state are in the “Holiday Home’ segment.
Sahil Kapoor, Executive Director- RE/MAX India says, “Currently Goa is not moving beyond the second homes as it is a large market. That would always be the case because of beaches and other tourist attractions. In fact, the market for second homes is constantly growing due to the accessibility of the state. The air connectivity to Goa has increased with direct flights from all major cities in India. Therefore, the demand for a second home has suddenly increased due to its easy accessibility, location and other activities that can be done in Goa.”
Over the past one year, the second home segment has broken the threshold and the conversion rate is increasing. Several renowned and local developers are offering such properties which are readily bought by end-users and investors alike.
One of the major reasons why the state is famous for second homes is the ‘party tag’ attached to it. Kapoor says, “The place is meant for all age groups and they are attracted to the state because of the flourishing tourism-related activities such as water sports, restaurants, sigh-seeing, bars etc. Apart from this, Goa is also one of India's richest states with a per capita two and a half times of that of the country.”
Who are the buyers?
Sanjeev Dhingra, Founder & Managing Director- Turtle Group says, “The buyers generally tend to be people from metros, Non Resident Indians (NRIs), High Net-worth Indians (HNIs) and a few home buyers from Tier-I cities, as it is an aspiration to own a house in Goa.” Majority of the transactions taking place are in North Goa, as it is more developed since it attracts more tourists, and offers better returns when the property is sold or rented out.
Developers have already gauged the trend and hence, a wide range of projects are coming up to meet the rising demand. While villas are the most supplied and demanded property type when it comes to the said segment, luxury and designer apartments are also quickly catching up.