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Goa Real Estate – Game For Correction
If you’re looking to investing in property or to purchase land, then now is probably the right time… Land prices, after sky rocketing for the past couple of months, looks to be assuming some sort of stability.
True, land rates have not fallen but nobody expects that to happen, at least for the next ten years to come. Earlier speaking to GP, Darryl Pereira, CEO, Reira Group had said, “If you are investing in property, then it’s never right to wait. Land prices will always rise.”
Goa has seen an average 8% to 10% growth in land values since 1995. And whist the state, along with the rest of the country, faced a lull period with prices falling from 2000 to 2003; we witnessed a sudden boom in 2004 with prices rising an average 30%. Land value in Panaji has doubled in the last one year while other places across the state have seen a steady 20% increase.
While most builders call this sudden hike in prices as land boom and expect prices to further rise at an increasing rate for another ten years to come; market analysts have a word of caution. The sudden boom was just a correction after the lean period they say, sure prices will increase in Goa but by an average 8% only.
Presently, Panaji is the most expensive place to acquire land. The average cost of a plot in Panaji rose from Rs.25, 000 per sq.m to Rs.35, 000 per sq.m, with prices touching Rs.50, 000 per sq.m in crème locales like Dona Paula and other water fronts.
Calangute and the northern coastal belt comes a close second, with the average start up price for a property being Rs.25, 000 sq.m, costs however increase with proximity to the sea.
But head to South Goa and you’ll sure get a better bargain. The place with its scenic beaches and picturesque locales is at least 30% lower than northern coast with start up rate for a place near Colva beach ranging between Rs. 15, 000 to Rs. 18, 000 per sq.m.
Market estimates points that nearly 75% of Goa’s real estate sales are from people from outside state, mainly north Indians from Delhi, UP and Bihar, who are starved of coastline. Besides, Goa’s cosmopolitan set up coupled with the state being rated as having the ’highest standard of living’ makes it a lucrative option as a holiday home or even a retirement option.
Besides state’s plans to develop SEZs, IT parks and have broadband connectivity will sure add value to any investment.
Source from The Economic Times
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