The dream of escaping the chaos of city life, and settling into a peaceful house by the beaches of Goa is one many of us share. But as property prices in Goa soar, this dream feels like it’s slipping further away. Goa is now emerging as a focal point in India’s real estate landscape.
With its demand for high-end developments, affordable housing in the region is becoming a challenge for the Indian middle class. The charm of living by the beach (while still alluring) now comes with a hefty price tag, leaving us to wonder if this escape will remain a fantasy.
Goa's Real Estate Growth
In recent years, Goa has transitioned from a holiday and party destination to a busy property market. This transformation has been driven by increasing demand for second homes, vacation villas, retirement properties and luxury cottages. However, this growing demand has also led to a dramatic rise in property prices.
Says Ankit Kansal, Managing Director of Axon Developers, “Indians from all over the country are vying to own a second home or a cottage in Goa. Prominent markets such as Mandrem, Vagator, Morjim and Panaji have seen tremendous growth in demand. However, this has also skyrocketed property prices. Average prices in the region are in the range of ₹15,000 to ₹23,000 per sq ft (PSF). This also means the price bracket of properties falls in the range of ₹5 to ₹10 crores or more.”
While the luxury segment continues to thrive, this price escalation leaves many prospective homeowners with limited options for affordable housing. For those seeking less expensive alternatives, Sindhudurg (a district located approximately 30 minutes from the new MOPA airport) offers more reasonable pricing. Kansal points out, “Sindhudurg is a relatively affordable choice. The Konkan district is home to turquoise sea water, panoramic views and green landscapes. Properties here are available in the range of ₹7,000 to ₹8,000 PSF. This means a 2,500-3,000 sq ft unit can be acquired in the sweet range of ₹2 to ₹2.5 crores. There are also ample land parcels available in areas such as Vengurla, Bhogwe, and Kudal at prices ranging from INR 1,600-2,000 PSF. For those looking to customize their investments, buying land can provide flexibility to create projects that align with their vision.”
Luxury Demand Drives Prices Higher
Despite the promise of more affordable properties in certain areas, Goa’s real estate market continues to be heavily influenced by high-end developments. Says Ravindra Gandhi, Founder and Managing Director of Tirasya Estates, “Due to its beautiful coastline and exceptional rental yields, Goa is emerging as one of the important destinations for the real estate market. The city is witnessing a surge in demand for luxury properties, comprising ultra-luxury villas as well as premium apartments. Goa's villa market delivers rental yields that significantly outpace metro cities. Moreover, South Goa is becoming a hotspot for premium offerings at quiet, less-commercialized beaches.”
The calmer South Goa region has emerged as a prime destination for the ultra-wealthy. Luxury properties in this region begin at ₹5 crores and can escalate much higher, further out of reach for most potential homebuyers. While the allure of Goa’s coastline remains strong, it is evident that the market is catering to a select segment, pushing property prices further beyond the grasp of middle-income buyers.
Affordable Options In North Goa
However, North Goa offers a glimmer of hope for those looking for relatively affordable housing options. Despite the dominance of luxury homes in North Goa, developers are increasingly catering to the demand for mid-range properties.
Ambika Saxena, Director of Corporate Communications at Bayside Corporations, provides insights into the North Goa market: “The real estate market in North Goa offers viable options under ₹2 crore. Buyers can explore a range of properties, including land parcels, villa plots (priced between ₹60 to ₹90 lakh), and compact 1BHK and 2BHK apartments. Studio and 1-bedroom homes are available for ₹1 to ₹1.5 crore, while 2-bedroom apartments are priced at ₹2 to ₹2.5 crore in sought-after locations like Anjuna, Arpora, Siolim, Morjim and Arambol.”
As Goa’s real estate market evolves, the key question remains: Can it create a sustainable path for affordable housing without compromising its appeal to high net worth (HNI) individuals? The next few years will be critical in determining whether Goa can expand its real estate offerings to include more accessible options for the wider population, or whether it will remain a playground exclusively for the affluent.
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