As operations in MOPA Airport are soon set to begin, the North Goa region as well as the nearby Konkan region is set to receive a windfall in real estate investments. The MOPA will be a growth multiplier for real estate demand in the nearby regions, which are already enjoying a bull run after the pandemic.
As per research by 360 Realtors, one of India’s leading real estate advisories, after the commencement of operations, property prices in the nearby region will jump steeply. Just near the airport, where presently the average price is Rs 6,700/ sq. ft., properties can appreciate by 27.8% in the next 12 months. In the past 4 years, average property prices have risen at a CAGR of 3.9%, as per research by 360 Realtors. The jump in the prices will be rooted in increased real estate investment and rise in tourism activities following the start of the airport.
In the adjacent Sindhudurg region, which is also a sought-after second home and nature resort destination, average property prices might increase by 29.2% annually. Presently, the average price is Rs 4,921/ sq ft. Over the past 4 years, average property prices in Sindhudurg have grown at a CAGR of 6.8%.
“Sindhudurg epitomizes the pristine beauty and culture of the Konkan and Western ghat and is marked by exotic landscapes, vibrant cuisines, plenty of greeneries, secret beaches & waterfalls, and much more. So far it is relatively unexplored but with the airport coming into existence, there will be the spotlight on the region” . Ankit Kansal, founder and MD, 360 Realtors, said.
The positive impact of the MOPA mega project will also cascade to other nearby regions such as Morjim Assagao, Siolim, etc where the real estate demand will receive a major thrust.
North Goa as Wellness & Nature Tourism Hub
Goa is an iconic beach tourist hub, well known throughout the globe. With the advent of airport operations, the region will be seamlessly linked, not just with major Indian cities but throughout the world. While its iconic beaches will continue to attract tourists in large volumes, other alternate forms of tourism such as wellness and nature tourism will also thrive in and around the MOPA airport region.
“Apart from world-famous beaches, the North Goa region is also known for its lush green backyards, pristine forests, orchards & farms, natural springs, and much more. There are plenty of beautiful places for nature lovers and this will give rise to nature resorts, eco-tourism hotels, tree cottages, forest lodges, and much more. Likewise, exponential growth is expected in other categories such as Ayurvedic massage centers & spa, wellness packages, holistic health tours, yoga retreats, etc,” Ankit Kansal added.
MOPA Airport to fuel real estate demand
Apart from tourism, the Rs 2,600 crores airport project, directly and indirectly will fuel real estate demand in the MOPA region, wider North Goa, and the nearby Konkan region. Already 232 acres of land have been earmarked near the airport site to be developed into a bustling commercial, logistics, and residential market. The planned project will consist of 5-star hotels, offices, retail shops, malls, and much more.
Plenty of new projects will spring in the vicinity comprising cottages, retirement and second homes, gated villas, farmhouse communities, and much more. Even in the past, owning a villa or luxury bungalow in Goa was a matter of pride. With the region getting cohesively connected with the globe, the Retirement & Second Housing (RSH) housing demand will grow multifold.
Besides end-use, investors are expected to come to the prolific North Goa and the Sindhudurg region in large volumes. Higher capital gains in the future and attractive rental yields will drive the investor flurry in the coming time.
As the concept of digital nomadism, remote work, and workation are rising, many professionals and entrepreneurs move to Goa and take villas, cottages, etc. for long leases. Before the pandemic, the average occupancy was close to 40-50%. Besides long leases, the rise in demand for extended weekends is also fuelling the rental market.
In the north Goa region, annual rental yields are close to 4.1- 7.2%. If we talk particularly about the region near MOPA, the rental yields are close to 6.7%. In the adjacent Sindhudurg region, it is around 7.2%. With the airport project taking shape, rental yields will further rise.