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* G * O * A * N * E * T **** C * L * A * S * S * I * F * I * E * D * S *
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PROPERTY prices in the metropolitan cities of Mumbai,
Delhi, Chennai, Bangalore and Hyderabad have reached
towering heights. A survey by Businessworld recently
revealed that built up property prices in upmarket
areas of Mumbai and Delhi had touched Rs. 2.35 lakhs
and Rs. 2.10 lakhs per square meter respectively. In
Bangalore and Chennai property prices have risen to
Rs. 60,000 per square meter. In Hyderabad, it has
soared to Rs. 40,000 per square meter. Ironically, in
Pune, which is the new cyber hub, property costs more
than in Hyderabad at Rs. 52,000 per square meter.
Goa's attraction lies in the fact that comparatively,
property in Goa is a steal. Even though prices in Goa
have been rising for the past two years, they are
still very reasonable in comparison to the metros. One
can still buy property in Goa even at upmarket
locations like Dona Paula and Miramar at around Rs.
25,000-30,000 per square meter. Prices in Porvorim,
which is an emerging satellite city to Panjim, is even
more affordable at Rs. 15,000 - 20,000 per square
meter.
For those who want to relocate and buy property in
Margao and Mapusa, the prices are even more attractive
at Rs. 14,000 - 15,000 per square meter and Rs. 12,000
to Rs. 13,000 per square meter in Mapusa. Compared to
prime beach side locations in Mumbai and Chennai,
which would cost you a whopping Rs. 2.5 lakhs per
square meter, you can still get a sea facing flat in
the North Goa beach belt comprising Calangute,
Candolim, Baga for Rs. 30,000 per square meter and
along the southern beach belt comprising Benaulim,
Colva, Majorda for as little as Rs. 20,000 per square
meter. Which means that property in Goa costs just a
tenth of the prices in metros.
It makes sense for professionals who have property in
upmarket areas in the metro cities to retire to Goa.
To cite an example, a senior executive sold his 900
square feet flat in upmarket Warden Road in Mumbai for
Rs. 1.2 crores and he was able to secure a 1,200
square-foot flat next to the Goa Marriott Resort in
Panjim for as little as Rs. 18 lakhs two years ago.
This meant he could live on the interest very
comfortably without working. Given the differentiation
in prices, those living in the metros can buy
themselves a beach side villa for one tenth the price
of their property in Mumbai and Delhi and still have a
large amount to spare to live comfortably after
retirement.
FOREIGN BUYERS
GOA is also attracting a large number of foreigners
who find property in Goa irresistibly inexpensive
compared to their home countries in the United
Kingdom, Germany or France. A beach side 500 square
meter luxury villa which costs US$ 4,75,000 in Goa,
costs as much as ten times more in Cannes at a
whopping US$ 48,70,800. Goa is also a convenient
option for foreigners as under the Foreign Exchange
Management Act of 1999, any foreign resident who has
lived in India for 182 days in the previous financial
year is eligible to buy built up property in the
state. Though this law has several restrictions,
Rajendra Talak of Talak Constructions says that many
builders bend laws in the state making buying property
in Goa even simpler for foreigners, "The Foreign
Exchange Act has many requirements that need to be
fulfilled by foreigners before they are allowed to buy
property in India, such as a written permission from
the Reserve Bank of India. But there are a lot of
builders in the state who help foreigners to by-pass
laws to sell property."
Says builder Joe Mathias, of Mathias Developers, on
what attracts buyers to Goa. "People prefer Goa as it
is a popular tourist destination. It is a hot holiday
destination, not as expensive as metros like Mumbai or
Delhi. It is peaceful. The food and culture is
uniquely different from the rest of the country. There
is easy accessibility. And of course you can buy
property even in posh localities like Dona Paula for
one fourth of the price in metros."
But outsiders who have chosen to make Goa their home
insist that it is not the affordable property prices,
but the peaceful environment, friendly people and the
slow pace of life that make Goa the perfect place to
live in. Says Vivek Arora, a hotelier, "It is not the
property prices, but our work that brought us here.
And eventually we decided to settle down as we loved
it here. Goa is a much better option than metros on
any given day, being much cleaner and safer to live
in. We also like the lifestyle here as against in
North India where the people are always in a haste to
earn money, always competing with each other. In Goa
people know how to enjoy life. The 'sussegad' factor
is exactly what we like about the state. It is so
close to nature, unlike in the metros where one can
see only concrete jungles. Climate is also pleasant.
We are settled here now for many years and have no
plans of moving out."
But Arora, however, agrees that property choices are
wider in the state. "You definitely have wider choices
in Goa, the population being less. And yes, property
wise also you can buy what you like. It is not like in
the metros where the choice is limited to your
pocket." Jyoti Mirchandani, originally from Mumbai and
now settled in Goa, also says that it is the natural
beauty of Goa that charmed her family. "Goa is
naturally beautiful. It is also extremely clean in
comparison to other states. My cousins and friends who
had come to visit me from abroad, told me that Goa is
so clean that it does not look like as if it is a part
of India. People in Goa are much nicer, very friendly.
But I do not think Goa is as cheap as it is made out
to be. The prices can, however, be said to be cheap
locality wise. You can get a house here in a good
locality for one-fourth of the price that you would be
paying in metros for a similar locality." The highly
affordable prices of property in the state has also
lured many residents of metro cities to buy property
in Goa as an 'alternate or a holiday home' for them to
unwind. The Mirchandanis live at Miramar in Casa Del
Sol and Jyoti Mirchandani says that it is the case
with most of the occupants of the complex. "People buy
property in Goa as an investment more so as the share
market is volatile now. People choose to stay in Goa,
mainly after retirement or as an alternate home to
relax. People do not come here to work. People rush to
Hyderabad or Bangalore for that. Over 60 percent of
the residents in my building are not settled in Goa.
They either work in one of the metros or abroad and
come to Goa to relax."
SAFE ENVIRONMENT
PRAKASH Rathod's case is similar. He, however, works
in Goa as a real estate dealer, but his family
shuttles back and forth between Pune and Goa depending
on their needs. His daughter Poonam, after completing
her education in the state, has now shifted to their
residence in Pune for higher studies. Says Prakash
Rathod, "Goa is definitely more economical and
peaceful. The environment in schools and colleges is
much healthier. It is a safer environment for children
to grow in. And speaking of property, one can buy a
bungalow in Goa for the same amount for which you will
only get a small flat in a metro like Mumbai. This, in
turn, means higher standard of living for the middle
class.
When we first moved to Goa, we also had a choice of
moving to Gujarat as it the place of my birth. But we
chose Goa because Gujarat was very conservative then.
Goa was developing back in 1985 and there were more
possibilities of commerce in Goa." Adds the daughter
Poonam, "Life in metros is always on the move. But in
Goa it is peaceful, like being on a holiday forever.
Whereas in metros, even an outing on Sundays is
impossible with the crowd and traffic."
Builder Rajendra Talak, however, sees this heavy
inflow of settlers as a big threat to Goa and Goans.
"More than settling down permanently, people prefer to
buy or rent property for long duration as alternate
homes in Goa. Goans are irresponsibly renting and
selling property. The Government has also not been
maintaining a proper record of foreigners buying
property and over staying in Goa. This is not a good
sign for Goans. The situation can still be brought
under control today which might not be the case in a
couple of years. Goans should be careful about
protecting their heritage and identity or else we will
become outsiders in Goa like in the case of Mumbaikars
in Mumbai. Outsiders come to Goa mainly as they see a
lot of potential in the state for business. At this
rate Goans are likely to lose out on the business
sector completely. The restaurant business is already
taken over by outsiders." Though property prices are
low in Goa compared to the metros and other urban
centres in the country, they have been going up
steeply. A leading builder told the Goan Observer that
prices have risen 35 to 40% in the last month or so.
Unfortunately, this has led to a lot of speculations
of real estate developers from outside pumping large
amounts of money into Goa. The lure of making a quick
buck has also seen a lot of new entrants in the real
estate business. Most of them are fly-by-night
operators. A lot of black money is flowing into Goa
which might be bad for the state.
Another builder says that the steep increase in
property prices is not sustainable. He attributes the
sharp increase in property prices to the fact that in
the last few years there has been a virtual freeze in
land conversion. The high cost of land conversion has
also inhibited established builders from taking up new
projects. The demand was rising but the supply was not
taking place. But with the new regional plan
permitting mass conversions, there will soon be a
glut. Property prices, like the stock market might be
heading for a crash.
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