14th September 2009

Real Estate prices started picking up in Goa in 2004 along with the rest of the country. While many cities saw a decline with recession, in Goa, land prices have only stabilised and not seen a downward spiral.

According to real estate developers in Goa prices have not really fallen. Goa is land locked, which has kept the prices high. While many new constructions are coming up, large-scale public protests against ‘mega developments’ have put many housing projects on hold, thereby hiking prices of land/projects unaffected by the agitation. Besides, many dealers who procured land at very high rates in the past few years are not willing to cut down prices.

Land value in capital Panaji has doubled in the last one year while other places across the state have seen a steady 20% increase. Nearly 75% of buyers in Goa continue to be second home seekers. “Economic meltdown has seen a 15% correction in land prices and this is unlikely to come down. If anything, prices in the interior villages will fall,” a real estate analyst said.

However, sources add that the realty market, which had seen a sudden influx of small-time developers from Delhi and Mumbai making for 25% of the sellers, are dropping rates and leading to ‘panic’ sales, while the seasoned reputed developers still prefer to hold on. According to them, with clear titled saleable land being scarce in Goa, prices will continue to remain high.

Presently Panjim is the most expensive place to acquire land. The average cost in Panjim rose from Rs 25, 000 per sq m to Rs 35, 000 per sq m, with prices ranging from Rs 50, 000-100,000 in Dona Paula and other water fronts.

Calangute and the northern coastal belt, comes a close second with the average price for a property being Rs 30,000 per sq m. Costs, however, increase with proximity to the sea. But head to south Goa, and you’ll probably get a better bargain. Prices here are said to be lower than northern coast with start up rate for a place near Colva beach between Rs 18,000 and Rs 22, 000 per sq m. Beaches in the north are abuzz with activities. In comparison, the coastal belt of southern Goa is known more for its picturesque locale.

So what’s triggering this real estate growth in Goa ? Better quality of life, higher standard of living and good resale value, say market analysts. People desire a good life which is prompting many from Delhi, Mumbai, Uttar Pradesh, Bihar and Madhya Pradesh “to look at viable options. The demographic profile pointing to Goa to have consistently the highest per capita income and highest standard of living, is attracting people to the state. Moreover, owning a place in Goa has now become a style statement.