Five months in to the year 2017 and Goa is still looking to be the prime location for buyers from Delhi, Mumbai, Gujarat and other parts of the country. To the many though, the scepticism still lingers as to whether this is the right financial push post demonetisation. So what is the reason that sunshine state of Goa ticks all the right boxes and ends up on their priority list? Is there some unspoken strategy behind all of these widespread investments?
According to Ashwinder Raj Singh, CEO of Residential Services, JLL India, people are looking towards more of an aesthetical and visually breath-taking appeal with the opportunity to convert these plus points into good rental returns.
“What attracts buyers in this segment are primarily a serene location with good weather, good infrastructure and the potential for rent back income.”
Goa in comparison to many states does have that certain je ne sais quoi, what with all its lush greenery neatly blanketing itself over most parts of the state, golden coloured bays neighbouring the crystalline blue waters of the Arabian Sea, Palm trees dotting the length of Goa make walking on its street a refreshing experience, while their houses and abodes give off an old world charm as well as the fusion of the western cultures into our own, creating an entire outcome from this demand. These are there priorities that buyers take very seriously when it comes to thinking about ‘second homes’ and ‘weekly getaways’ and this is what every investor should take advantage of in terms of converting homes into great returns’
From a financial stand point even the returns on investment are higher compared to most neighbouring states, this owing to the fact that Goa is the most sought after state in terms of holiday destinations followed by Shimla and Kerala. So the question asked by potential investors is ‘What really triggered this unseen demand for second homes in an otherwise dormant sector when unsold inventories have been piling up and certainly being deadlocked over the demonetization fiasco a couple of months back?’ The answer is very simple according to Mr Singh.
“Selling with a basic luxury factor is the key to it all! Quality time away from routine everyday life is what sells and most people have an inbuilt desire to own properties over expensive two day stays in hotels, to use purely for relaxation and downtime. Remember you are selling to individuals that have had a restricted lifestyle experience living in polluted, overpopulated areas that can only imagine what a place like Goa has to offer. Hence it is a popular selling facet to commercialize especially as retirement homes.”
Though the popular marketing concept of ‘to make money you have to spend money’ applies here as well.
“Remember this is an investment on the part of the buyer. One spends only a limited amount of time per year in a weekend home. Nevertheless, there will be regular expenses on maintaining the property. If one does not wish to put the property on rent, the costs would include keeping a caretaker. And hence over a short period of time, convert on their costs into great returns.”
Singh said According to the sources, the investment in Goa is always considered as the second home for the Indian investors. And the properties are purchased by those home buyers who have already owned their primary home.
Goa is also on the minds of major corporate houses like Tata and Reliance which have already begun developing properties in and around the state. This alone should tell you that Goa is a potentially great market for investment especially with the yearly influx of tourists and their need to rent out a living space.
Source : http://www.businessinsider.in/Most-Indians-are-buying-land-in-Goa-We-tell-youwhy/articleshow/51878887.cms