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» NRIs & locals now look at Goa as a safe investment option

Date: Aug 26, 2008

Author: Economic Times

f you’re looking at investing in property or buying a second home, then Goa may still be you’re best option. Nature is doing for Goa, what IT did for Bangalore and Hyderabad — send land prices soaring!

This tiny coastal state, known to be the best remedy for one to destress, detox and recoup, has in recent years attracted a lot of investment for holiday homes by non-resident Goans (NRGs), NRIs and domestic buyers, mainly from north India. While the coastal belt with a good ‘sea view’ is always in demand; people are also scouting for inner lands overlooking hills, rivers or valleys with proximity to the city. Also, while land prices in the rest of the country are expected to fall due to a hike in home loan rates, its quite the opposite in Goa.

“Goa attracts second home buyers for whom a loan rate hike does not make much of a difference. So the prices are still increasing,” said Dattaprasad Kamat, proprietor, Kamat Developers.

Senior officials of leading banks agree, adding that most property buyers in Goa are high-end clients looking for a villa ranging between Rs 80 lakh to Rs 1 crore. At present, Panjim is the most expensive place to acquire land.

The average cost in Panjim rose from Rs 30,000 per sq m to Rs 45,000 per sq m, with prices ranging from Rs 70,000 to Rs 1 lakh per sq m in locales like Dona Paula and other water fronts. Commercial properties, however, are more expensive at Rs 90,000 to Rs 2 lakh per sq m.

Calangute and the northern coastal belt come a close second with the average start up price for a property being Rs 25,000/sq m. Prices, however, rise with proximity to the sea. An apartment can cost anywhere between Rs 20 lakh and Rs 80 lakh. Residential villas cost much more with an average start-up rate of Rs 75 lakh. “This is a demand and supply problem.