From Tourist Hotspot to Real Estate Gem: Unveiling Goa’s Transformation | Leaders of Tomorrow Season 11

October 21, 2023
Goa From Tourist Hotspot to Real Estate Gem

Uncover the dynamics propelling Goa’s real estate to new heights in Leaders of Tomorrow Season 11. This discussion delves into the remarkable property appreciation, the influence of NRIs, infrastructure advancements, and the distinctive charm that makes Goa a sought-after real estate destination. Explore why Goa’s real estate market is gaining momentum and drawing both local and international investors.

Transcript from the discussion.

“A very warm welcome to IDFC First Bank presents Leaders of Tomorrow season 11. I’m Ritwika Gupta. Tonight, we are taking you to Goa as part of our spring boat series – a number of conversations that we do across the country.

Now, Goa has always been one of India’s most desirable tourist destinations, but lately, Goa has also seen a rise in demand for property. Today, we’ll be exploring what’s Making Waves in this landscape. On the panel tonight, we’ll have Vishal Bhamare, managing partner of Property Hub; Carlos Dza, managing director of Dusza Group; and Milind Prabhu, CEO and chairman of Goa Infotech and GCCI and the startup committee.

So, Vishal, I’d love to kick off the conversation with you. My understanding, as an outsider looking in, is that in the last three years alone, Goa’s real estate market has appreciated by anywhere from 30% to 50%, depending on the community. The question is, does this surprise you, and do you believe that Goa’s real estate ecosystem has reached a saturation point?

Vishal: I would like to correct you, Pooja. It has not gone 30% to 50%; in some cases, it’s gone 50% to 100% in certain localities. So, yes, there is a huge scope for appreciation. The race has just begun. The surge of people coming to Goa has gone to the next level. Thanks to the infrastructure the government is building, a new airport is coming up. In the past, around 85 to 90 flights used to land at the old airport, but now, the new airport operates around 26 domestic flights and a couple of international flights, connecting to larger destinations in India. Also, the road infrastructure, like the Mumbai-Goa Express highway, is improving, making it easier to reach Mumbai in around 9 hours by car. So, the race has just begun, and there is a huge scope for appreciation in the near future.”

Carlos, if I could bring you in now. If we were to talk about some of the underlying factors that play and take more of a macro view, the foreign exchange rate at present, I believe, is roughly 83 Rupees to the dollar, which makes that NRI client incredibly powerful in this whole real estate puzzle. How do you expect that to influence Goa’s real estate market going forward?

Carlos: I’m going to take you up on the macro approach to this situation. Yes, I’ll come to the specifics of the advantage, but the demographic, as the Honorable Minister said, is very much in India’s favor. The average age of this population is the same as the average age of this panel. Everything we’re talking about right now is the previous generation’s additional disposable income after already buying that extra apartment or piece of land in their respective cities. So, the real appreciation is yet to come. When you talk about the benefit that an NRI has, yes, of course, the rupee devalues against the dollar by approximately 8% every year. We also have Goans who have migrated in the past and now see Goa as the greener pasture to come back and have an investment opportunity. People from the rest of India also see Goa as a great place to have a second home because of the improved infrastructure. We have a new airport, and the connectivity to that airport is only beginning to show its true potential. So, it’s a no-brainer for people who would like to invest in real estate in India to look at a place like Goa. Rental yield rates are higher here, and the amount that tenants pay for rental properties allows you to pay off your loan at a much higher pace. The factor of helping Goa’s real estate landscape mature is that it has an angle to it. The startup community in Goa is growing, and there is a much larger demand for rentals and real estate in and around the cities as well.

Ritwika: And, Milind, I think that deserves a round of applause. Huge round of applause to all of our panellists. I believe it’s deeply deserved. They’ve reached deep into their personal and professional journeys, and the comparisons between Mumbai and Goa sometimes seem justified, and sometimes they seem completely unfounded. And when you bring NCR into the mix, as well as you start talking prices, there are communities where all other things being equivalent, a property here in Goa could be priced at the same rate as a property in Gurugram on Golf Course Extension, certainly considered to be premium. Are these price equivalencies justified in your view, or is this a temporary blip?

Milind: Pricing, if you put it all over India depending on location, is more or less the same. So when you’re comparing Gurugram, I would just say a small experience I had in my native place. After 15 years, I asked my cousin, “What’s the land rate?” He said, “It’s around 5,000 rupees a square foot.” I said, “What? It’s a village.” So if you go around any town in India, because India is growing everywhere, it’s not just Goa growing, it’s India growing. When India is growing, the rates are somewhat the same. But what we have to compare is what you get at that price there and what Goa offers differently. In Goa, a person who’s buying a villa is not going to a place like Golf Course Extension; they already have properties in Delhi or Mumbai. They’re looking for clean air, and a different lifestyle, and that’s why they choose Goa.

Carlos: Like I mentioned before, other destinations should embrace good practices, but they should be authentic. There’s a reason why Goa is special – its topography, architecture, and culture. Embrace your uniqueness, and don’t try to be something you’re not. Even if you want to advance your industry, do it the Goan way. Play to your strengths and be authentic. People will love you more for it.

And, finally, the text concludes with additional discussion. Let me know if you’d like me to continue with that part.