How holiday homes are changing the face of hospitality in Goa
Authored Article by Saurabh Vohara, Founder and CEO, ALYF Nestled along the sun-kissed shores of Southwest India, Goa has forever held a special place in the hearts of Indian and international travellers alike. In
Authored Article by Saurabh Vohara, Founder and CEO, ALYF
Nestled along the sun-kissed shores of Southwest India, Goa has forever held a special place in the hearts of Indian and international travellers alike. In 2021 alone, approximately 33.08 lakh domestic and 0.22 lakh foreign tourists chose Goa as their preferred destination, which swelled to about 49.55 lakh domestic and 0.95 lakh foreign tourists by September 2022. Its tranquil beaches, rich cultural heritage, and exuberant nightlife have consistently characterised the essence of an unforgettable vacation for every visitor.
Notably, a momentous transformation is shaping beyond these well-charted experiences and within the gentle embrace of its coastal allure. Once regarded merely as a weekend escape, Goa is now transcending its conventional role. In this new era, it emerges as an idyllic destination that beckons travellers to create a “home away from home.” This transition is underpinned by a convergence of factors—a benevolent climate, seamless connectivity, robust infrastructure, and unwavering access to electricity and internet services.
Moreover, as remote work gains prominence and individuals yearn for sanctuaries away from the urban cacophony, the demand for holiday homes in Goa has surged exponentially, quadrupling real estate investments since the onset of the pandemic. Ultimately, transforming it into a destination where life stories are woven, diverse cultures are embraced, unmatched investment value is realised, and superior rental yields are savoured, along with a wealth of choices for every discerning investor.
Let’s delve into the factors that make Goa an enticing destination for holiday homes, reshaping the essence of what this coastal gem represents to modern travellers.
1. Unique Luxury Escapes
Holiday homes in Goa redefine the hospitality experience, setting them apart from conventional hotel stays. These properties cater to discerning travellers, providing personalised services, dedicated concierge assistance, and the opulence of exquisitely designed residences. This concept appeals to a diverse clientele, including High Net Worth Individuals (HNIs), Non-Resident Indians (NRIs), retirees returning to their homeland, and those seeking unique thematic experiences. Notably, premium bed and breakfast models, especially in villas with private pools, promise substantial returns, making them cherished investments for property owners while ensuring guests a memorable stay. These homes blend aesthetics, character, and functionality, delivering exceptional value for homeowners and an unparalleled experience for renters.
2. Balancing Work and Life
The pre-pandemic era emphasised proximity to workplaces, but the rise of hybrid work models has shifted priorities. Homebuyers now seek locations closer to nature and holiday destinations. A renewed focus on work-life balance, opulent living, and quality of life has driven demand in smaller cities and holiday spots like Goa. The pandemic has redefined priorities, emphasising practicality, spaciousness, and wellness in future homes. As health and well-being take centre stage, properties that offer holistic lifestyles are in high demand. Moreover, this global shift towards remote work has also amplified this demand driven by the pursuit of privacy, safety and a tranquil escape from urban
chaos. This evolving trend reflects the conscious choice of city dwellers to seek respite from their fast-paced lives.
3. Diverse Property Options
Goa continues to maintain its stature as India’s beloved holiday destination, drawing millions of tourists and naturally emerging as an astute option for holiday home investments. Within Goa’s holiday home market, investors not only appreciate the charm of the coastline but also recognise the potential for substantial capital appreciation over time. These properties represent lucrative assets, presenting promising avenues for rental income. Goa has risen as the preferred choice for second-home buyers, largely due to the enticing average rental yields ranging from 4% to 10%. Furthermore, the aspiration to possess a second home in Goa epitomises upward mobility for numerous Indian investors.
4. Infrastructure-Driven Property Appreciation in Goa
While serene, Goa’s holiday home areas boast excellent connectivity to essential hubs. Ongoing infrastructure development, encompassing roadways, highways, hospitals, schools, and the forthcoming Mopa International Airport has substantially enhanced accessibility to these coastal retreats. The influx of startups, the establishment of Special Economic Zones (SEZs), and the Goa-Startup Policy have fueled industrial growth, thus amplifying investments in the real estate sector. Furthermore, the recent draft policies introduced by the Goa government, mainly targeting sectors such as IT, high-end hospitality, niche tourism, food, and agro-processing industries, are set to invigorate the state’s economy and real estate sector, further driving investment in Goa’s holiday home market.
Notably, properties in Goa have the potential to yield impressive annual returns, averaging between 12% to 16%. These returns, combined with competitive real estate prices compared to metro cities in India, solidify Goa’s standing as a highly profitable option for holiday home investments.
5. Fractional Ownership
Fractional Ownership is rapidly gaining prominence in Goa’s real estate landscape, presenting individuals with an opportunity to claim ownership of fully furnished, professionally managed holiday homes without the customary burdens associated with property ownership.
Companies adopting this innovative model not only streamline property management but also generate steady rental income for property owners, significantly enhancing the investment’s overall appeal. Remarkably, fractional ownership plans in Goa often commence at an incredibly accessible price point, starting as low as Rs 10,00,000. This approach is investor-friendly and approved by SEBI, offering a secure and lucrative avenue for those seeking a hassle-free entry into the holiday home market.
This coastal paradise, primarily known for its scenic beaches, vibrant culture, and Portuguese architecture, is now emerging as a prime destination for those seeking a “home away from home.” With diverse property options, attractive rental yields, infrastructure-driven property appreciation,
and the growing trend of fractional ownership, Goa has become a lucrative investment hub, making it an ideal choice for a holiday home. Furthermore, with the potential for impressive annual returns and competitive real estate prices compared to metropolitan cities, Goa offers a highly profitable opportunity for holiday home investments. It has truly evolved into a compelling destination shedding its former identity of a vacation spot and catering to both leisure and investment interests.