The real-estate market in Goa is booming and is expected to keep growing at a rapid pace. The rise in property prices for years to come is all but certain. This is because -
- Indian economy is growing at a rate of 8%+ per year.
- The rules of foreign investment in Indian real-estate have been relaxed.
- Despite recent appreciation, Indian property is still under-priced in relation to comparable markets in Asia.
- Enormous purchasing power of the growing Indian middle class.
- Increasing prevalence of credit (mortgage loans) to facilitate home ownership.
- There are more than 1 billion people in India!
Property prices are often quoted in Rupee’s per square meter. Often a whole development from one bed studios to five bedroom detached villas are all calculated by the size.
This is useful because it enables a ready comparison between developers and help you gauge value.
In early 2006 prices been banded around for high specification homes close to resorts and beaches ranged from 25,000 - 45,000 rupee/sq metre.
Given that nice studio might be 50/60 sq metres and a large family apartment 150/200 sq metres.
Converting in to UK money it means you could by from as little as £16,000 - upwards to well.. Almost anything you care to spend. As a very rough and ready guide I say that in terms of value - property on a “like for like” basis compared with say Spain is probably a third to half the price for comparable property in comparable location.
Next season expect prices to have risen to 35-55,000 rupee. The good news is that the £1/INR rate has improved drastically in the last few months. Up from 75 to 85 rupees to the UK pound meaning a £50,000 property now will cost £44,000.
So.. how much to pay?
It depends on your budget - but it seems to me that the cheaper end of the market is less likely to appreciate - property built to cater for a cash poor investor tend to be poorly cared for a few years down the line and may not in some cases even appreciate in value. Tip - always ask a developer if you can view an established project - older the better - to judge how the estates are managed.
Pay as much as you can afford - my advice push your budget to the better quality end of the market. My opinion (for what it’s worth) is that South Goa is a better bet for investment - if you just want a cheap place to crash and call your own then go for North Goa.