When it comes to the quaintest destination filled with scenic beaches, thriving nightlife, and stunning natural bliss, then Goa takes the crown. However, Goa now also boasts itself to be one of the most lucrative places in India to invest in property. Many are interested in buying luxurious second homes in Goa because it yields higher rental returns.
The trend of purchasing a second home in Goa has gained increasing popularity. Goa has emerged as a shining player in the growing second home market in the last five years. Purchasing luxury villas and apartments are burgeoning in the northern belt of Goa, in places like Candolim, Calangute, Saligao, Anjuna etc. The tiny emerald state has piqued interest in buying second homes for many influential entrepreneurs, NRIs, film actors, famous sports personalities and high-net-worth individuals.
After the pandemic, green open spaces with negligible pollution and high air quality have become a priority for many people. Moreover, many city dwellers want to escape the cacophony of traffic noise and reside in tranquillity. And Goa ensures serene comfort and high-quality life in luxurious villas. Hence, the need to buy a second home in Goa is on an upward trend.
How much rental yield can you earn from a residential property in North Goa?
Rental yield refers to the proportion of property value gained through annual rental revenue. For example, renting out a luxurious villa in a scenic location of North Goa can fetch you excellent rental yields. Renting out a villa is a brilliant way to generate passive income; according to Savills India, a real estate consultancy service company, the average annual rental yield from residential property in India is around 1.5% to 3%. However, the average annual rental yield from residential property in Goa can be about 4% to 10%. And the high-end luxurious residential properties in North Goa, like a Villa or a 3BHK apartment, can easily fetch you rental yields of a whopping 12% to 16%. No wonder people are willing to invest their money in the North Goan properties.
How much average rental income can you earn from renting out a villa in North Goa?
Let’s break down how much rental income you can make by renting out a villa. And what are the factors that can affect the range of rental income? North Goa is already a favourable tourist location and receives many footfalls during peak tourist season (November to April). During peak season, the demand for villas also increases as tourists and travellers enjoy longer stays in luxurious villas than in five-star hotels. However, in the off-season, the demand is lower; hence the rental rates also get affected.
Determining precise numbers of rental income is tricky. Still, a rough estimate suggests that renting out a villa in the peak tourist season can earn you approximately INR 15,000 to INR 60,000 per night. Of course, the number of bedrooms in the villa can also affect the rental income rate and the facilities like an auto-cleaning swimming pool, cook, domestic helpers etc.
Suppose you bought a luxurious 4 BHK villa worth INR 4 CR to 5 CR. It has all the remarkable amenities such as a private swimming pool with auto cleaning, private helper and cook, washing machine, microwave, and internet. The beach is within a radius of 500 m to 1000 m. It is well connected to all the eating and shopping joints. So, a villa like that in peak tourist season between November to April with an 80% to 100% occupancy rate can easily fetch you an average monthly rental income of around INR 11, 25,000/-
Even during the off-season with 40% occupancy, you can still earn an average monthly rental income of around INR 3 to 4 lakhs/- from a luxurious villa. With such high rental returns, you can cover the value of your estate in the next 5-6 years.
Please note that these are just estimates, and actual returns may vary depending on several factors.
How to maximise your rental income in Goa?
First, ensure to provide in-house facilities in your villa, like an indulgent spa treatment, yoga and meditation sessions for your guests. You can also give discounts for extended stays or any last-minute bookings to cover any vacant times. The comfortable staying experience of your guests will speak for itself. In addition, the customer testimonials will be a huge endorsement of your villa.
Use your luxurious villa in Goa for your own staycations!
During the off-season or when there is less demand, you may organise a vacation in Goa and stay in your magnificent home rather than a hotel. Staycations at your villa may be a terrific opportunity to relax and unwind in the comfort of your second home. Simply set the ambiance with cosy lighting, comfy furnishings, and soothing music to create a peaceful environment. You can also organise enjoyable activities with your loved ones. Make your vacation more enjoyable by organising events such as movie nights, BBQs, and pool parties. Make your stay even more memorable by indulging in some pampering sessions. You can even host events like birthdays, weddings, religious ceremonies etc. in your villa for you and your loved ones.
In conclusion, you can generate massive rental income and receive higher ROIs by owning a villa in North Goa, and considering the current industry trends now is a good time to invest in property in North Goa.