Case Study – Goa

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GOA – Kenna Slow Kenna Fast

Acclaimed as “A Tourist Haven” for its swaying palms, white sands, and sparkling waters, Goa is a tiny yet glorious slice of India, hugging the country’s western coastline. Split into two districts; North & South Goa, it is India’s smallest state by area and the fourth smallest by population. People travel from far and wide to this small state for its diverse mix of beaches, adrenaline activities, parties, nature, and history. In 2014, the state attracted 4.05 million tourists, including 0.51million foreign visitors.

The state which was once a Portuguese colony is also one of India’s richest states with the highest GDP per capita — two and a half times that of the country as a whole. Goa is also amongst the fastest growing states in the country. Its average Gross State Domestic Product (GSDP) the growth rate was at 11.23 percent between 2004-05 and 2014-15. The growth juggernaut is driven by the tourism & hospitality industry and its abundant mineral wealth. The state also has an established base for the Pharmaceuticals industry and emerging knowledge-based industries such as Biotechnology and IT.

INFRASTRUCTURE

Besides the tourism hotspot that Goa is, it has also seen a major infrastructural facelift over the last few years and is continuing on its road to development. This state prides itself to own a well-developed social, physical & industrial infrastructure. It has an international airport that is in line with its importance as a globally-recognized leisure destination.

The Dabolim Airport links the major Indian states to Goa and it handles charter flights and cargo from several European nations while the Konkan and Southwestern Railways link the state to the other parts of the country. It also has a significant port infrastructure. The State Government of Goa is working on the new tourism policy with a vision of overall tourism development and to engage with private players to invest and develop infrastructure in the state.

REAL ESTATE IN GOA

The Goa property market is experiencing a boom, thanks to the infrastructural developments, with many investors infusing their money here to get worthwhile yields in the mid to long run. The city has been notching up a growth rate of 8-10 per cent in terms of capital values for residential properties annually.

The demand for built-up property is all the more robust because, in addition to year-on-year value appreciation of the asset, most properties also offer great potential for earning rental income, both for long rent as well as for short holiday rentals. High cost and a shortage of hotels rooms during holiday season further fuel the demand for holiday villas, row houses, hotels, guest houses and apartments in Goa.

Rapidly emerging as a prime destination for buyers, Goa offers something for everyone those looking at a second home and for those looking at long-term investments in real estate. Though Goa in its entirety gives profitable investment options for prospective buyers, prices have been exorbitantly high due to frenetic commercialization & growth activities in the North. Hence many investors are now actively looking forward to its Southern counterpart due to its affordability, social infrastructure & proximity to key destinations. Not to forget its calm & serene environment due to natural indulgences. Headquartered at Margao, the thriving commercial metropolis of Goa, South Goa is also a perfect match of well-developed social infrastructure & an industrial & trading base.