Gated villas in Goa are an appealing investment option for young professionals due to the segment’s attractive capital appreciation and rental yields. Grade A locations like Anjum, Arpora, Baga, Calangute, and Candolim have seen a 22% capital appreciation in villa prices in the FY 2023-2024, even though the return on rentals is only about 5-8%. 

According to data supplied by Savills India Research, some of the newly built villa properties in Goa are priced between Rs 7-10 crore, comparable to apartments in South Delhi and South Mumbai. 

Younger professionals are increasingly relocating to Goa, particularly from large cities like Bengaluru, Delhi, Mumbai, and other well-known cities. According to the data, these new residents frequently work in creative industries or are digital nomads looking for a better work-life balance. 

According to Savills India’s research, buyers are mainly people in their 30s to 60s, including business owners and salaried professionals. These purchasers seek wealth diversification opportunities with gross yields of 10-12% annually, drawn by the prospect of capital appreciation and rental returns. 

It was evident that buyers of the second homes were not only end users but also retail investors looking for both capital appreciation and rental returns due to the emergence of asset management companies and hospitality operators managing individual properties. 

Savills India’s gated villas with three to four bedrooms and sizes between 2,000 and 4,000 square feet are becoming increasingly popular, according to Savills India. Savills India research provided data indicating that the plot sizes of these gated villa projects range from 190 to 400 sq m. 

Villa sizes decrease as a result of rising land costs. 

Due to higher land prices, the standard size of villas in Goa has fallen over the past five years from 500 square meters to 250 square meters, according to the data. 

Although still in demand, premium views are becoming increasingly rare, and investment goals frequently take precedence over end-use goals. According to the data, Assagaon and Siolim are popular with lifestyle-conscious buyers who value address and quality over beach access, even though beach proximity is still preferred. 

While larger properties are still available in emerging areas, the average size of a home in prominent locations has decreased to 300 square meters. The data indicated two primary buyer categories: end-users, professionals, industrialists, those looking to deploy capital gains, and investor-aspirational buyers. 

High rental income from vacation rentals in well-liked micro markets gives investors a competitive return on investment and a consistent. Families and groups are increasingly choosing private villas, according to the report. 

This is how Goa’s villa capital values compare. 

During the fiscal year 2023-2024, villa prices in grade A locations such as Anjum, Arpora, Baga, Calangute, Candolim, Vagator, Morjim, Assagao, Siolim, Mapusa, Pilerne, Reis Margos, Caranzalem, and Dona Paula– went up by 22%. The average capital rate in Q2 2024 was about Rs 25,504 per square foot, while in Q2 2023 it was about Rs 20,914 per square foot. They were Rs 15,6667 per square foot in Q2 2022. 

In the 2023-2024 period, prices at Grade B locations like Aldona, Moira, Nachoinola, Panjim, Chapora, Nerul, Mandrem, Parra, Saligao, Verla Canca, Saipem, Guirim, Tivim, Bicholim, Penha de Franca, Sangolda, and Bambolim changed by 30%. Rs 17,286 per square foot in Q2 2023 and  Rs 22,410 per square foot in Q2 2024. The cost of a villa in Q2 2022 was Rs 14,564 per square foot. 

As a component of Goa Home Fest 3.0, we offer a venue where sellers can highlight their finest properties and buyers can look for properties that meet their needs. It includes more laid-back coastal areas like Nachinola, Moira, and other North Goa neighborhoods, alongside more upscale ones like Anjuna, Vagator, and Candolim. It also includes ready-to-move-in and under-construction homes in Goa. According to Shveta Jain, MD of Savills India’s Residential Services division, the showcase highlights Goa’s rich history and culture in addition to independent bungalows and Portuguese homes. 

A fascination with commercial property 

Goa’s market for commercial real estate has been expanding along with its growth and tourist appeal, according to the data.