Upcoming airport in Goa to further boost demand for second homes : Experts

The upcoming airport in Goa will boost demand for second homes in the state and open up new areas for real estate development, said developers and brokerage firms.
Mopa International Airport is expected to be operational by August.

“Infrastructure like a new airport has a direct and positive impact on the real estate of a region. We expect the international airport at Mopa to have a multiplier effect on Goa, both as a destination for tourism and a state to own a home in,” said Samir Saran, managing partner, India Sotheby’s International Realty.

According to a Savills India report, Goa leads domestic demand for second homes, with a fifth of respondents interested in buying a second home in the state. About 70% of demand is within the Rs 2 crore price range.

Goa has traditionally ranked among the most desirable locations in the country for the well-off Indians to buy property in. The Covid-19 pandemic accelerated the demand for luxury real estate in the beach state and prices have risen substantially in North Goa in the past two years.

“At India Sotheby’s International Realty, we facilitated the sale of one of the highest value transactions in 2021-22 in North Goa and believe the transaction velocity will only rise with Mopa International Airport likely to commence operation by the end of 2022. In our ‘Luxury Outlook Report’, we put Goa right by the side of Delhi and Mumbai as the markets to watch out for in 2022,” said Saran.

There is already a boom in the second and holiday home segments. The holiday home market is projected to grow at a compound annual growth rate of 23.63% for the next five years.

“We believe the Mopa airport will provide a major fillip to the tourism industry and will have a positive impact on the real estate projects in both Goa and Maharashtra,” said Aditya Kushwaha, CEO, Axis Ecorp.

With the easing of the pandemic, ultra-high-net-worth individuals are believed to be in favour of investing in property rather than any other asset class.

“At Axis Ecorp, we have three premium projects that are nearing completion and are in close proximity to this airport. The news regarding the airport being operational soon has piqued the interest of prospective homebuyers and we are experiencing a higher volume of enquiries,” said Kushwaha.

Rental yields in Goa have been in the range of 4-7% and are on an upward trend. There has been more than 20% appreciation in land rates since 2019, before the pandemic set in.

“Infrastructure projects such as the metro and airports have an incremental impact on real estate development. Homeowners were quick to snap up interesting developments in the area when construction of the airport began, and a similar trend has continued,” said Vinit Dungarwal, director, AMs Project Consultants Pvt Ltd.

Once the new airport becomes operational, connectivity is expected to improve and this will also fuel economic development.

“Taking advantage of Goa's locational advantage and increased connectivity, major players in the real estate industry have been heavily investing in the state,” said Dungarwal.