The Buyer’s Market
Goa Streets is proud to be a Media Partner of the Goa International Real Estate Exhibition and Summit, taking place this week at the Kala Academy in Panjim
Are you looking at upgrading to a better home? Or maybe just invest in your little corner of the Goan paradise? Turns out that Goa
offers some highly interesting prospects for property-based investments – and now’s a really good time to take advantage of them.
For various reasons, we’re in a buyers’ market at the moment.
Chalk it up to too much development happening, too fast. According to the IMF, prices for Indian housing have undergone the sharpest fall of 52 major markets surveyed. And here in Goa, while prices have yet to fall, there’s quite a bit of unpurchased inventory and many expect prices to either remain stagnant or actually go down in the coming months. It’s not that real estate in Goa is poised for any major downturn, to be sure.
At the end of the day, Goan real estate is expected to remain a solid investment. And the main reason for that is that huge numbers of Indians are keen on purchasing a little piece of this tropical Real Estate in Goa paradise. Part of it is about economic
growth. Just imagine how many poor people are entering the middle class, and how many middle-class people are entering the upper class. And if you have extra funds to spend, and you’re looking for a beautiful place to invest in India, Goa pops up right at the top of most people’s list.
For now, however, real estate prices in Goa have “stagnated,” explained Desh Prabhudesai, President of the Goa chapter of CREDAI (Confederation of Real Estate Developers Associations of India), in a recent interview.
“The prices are not increasing as they increased over the last two to three years,” he said.
Don’t expect this situation to last very long, however. A number of recent housing projects have sold out completely, and when current inventories shrink, the growth curve is likely to resume – especially with many expecting the country to resume robust overall GDP growth.
For anyone interested in the real estate industry in Goa, a highly noteworthy event is taking place this week in Panjim. The Goa International Real Estate Exhibition and Summit, featuring 50 exhibitors, 7 prominent states, and 20 eminent speakers, will take place from 28th-30th of September at Kala Academy. It’s being organized by Wild Orchid Entertainments, producers of the fourth Global Economic Summit 2014 held in Mumbai.
The event is being organised in association with the Karl Group, Gera Developers, Sinari Developers, Ascon, and CREDAI Goa, and Goa Streets is proud to be a Media Partner for the summit. The exhibition cum summit will see panel discussions (B2B and B2C), presentations by developers, seminars discussing major issues faced by developers and buyers, all followed by an awards ceremony recognizing major contributors to Goan real estate.
“We’ll be engaging our speakers, panellists, exhibitors, and all the visitors in panel discussions and seminars where we will help everyone grasp all the information they need while buying or selling real estate, putting light on the issues they might face and how to solve them.”, says Mr. William Xavier, founder of Wild Orchid Entertainments.
And why is it called the Goa ‘International’ Real Estate Exhibition and Summit? William Xavier and Rakesh Sharma, partners at Wild Orchid, have a vision to expose Goan real estate to a global spectrum of buyers and developers. A lot of NRI’s are seeking to buy holiday homes in the tropical state. And not just NRI’s. Investors from across Asia, Europe, South America and the Middle East are all interested in this part of the world. Putting out the word about the property scenario in Goa internationally is one of the major objectives of this exhibition.
“We want to create a platform where buyers and investors could go through a variety of investment options and not just land, but also other important services involved with real estate like furnishing, home decor, flooring, electrical systems et cetera.”, added Xavier.
Here you will find stalls from Gera Developers from Pune/Goa, Raj Housing from Goa, Karl Group from Goa, Woodbourne form Goa, ASCON Developers from Goa, Naiknavare from Pune/Goa, Boshan Developers from Goa, Sardesai Group from Goa, Sinari Developers from Goa, Shah Developers from Goa, Red Forest Industries from Goa, Allopey Builders from Goa, Cam Industries from Goa, Emerald Developers from Mumbai, Goa County from Goa, UKS Structures from Bangalore, S.S. Electricals from Goa and many more.
It’s true that GDP growth in India currently does not augur extremely well for the prospect of huge numbers of people purchasing second homes in Goa. And the mining ban and other economic issues have negatively affected local Goan demand for housing. Neither of those issues – overall GDP growth and the mining ban – are expected to continue indefinitely, however.
One of the reasons real estate prices in Goa are not expected to fall substantially is because of the rising costs developers face, including that of land.
Currently prices of built up area in Goa commonly hover between Rs 40,000 per square metre and Rs 75,000 per square metre, depending on where the property is. In places like Mapusa and Vasco da Gama, away from the bustle of the two major cities of Panjim and Margao, prices are between Rs 40,000 to Rs 50,000 per square metre. In the state capital prices start at Rs 55,000 per sq m and go up to Rs 85,000 a square metre and above. Suburb Porvorim commands a price of Rs 45,000 to Rs 60,000. A similar story exists for the Southern capital of Margao where prices range from Rs 55,000 to Rs 75,000 while its suburb Navelim commands a price of Rs 40,000 to Rs 60,000.
Prabhudesai predicted that it will take another six months or so for the local real estate market to resume robust growth.
The period between then and now, therefore, is the time to buy.
