[Goanet] Property in Goa: Heaven on hold as Goa awaits its fate
from http://www.telegraph.co.uk/property/main.jhtml?xml=/property/2007/11/17/opgoa117.xml Property in Goa: Heaven on hold as Goa awaits its fate Britons love it for the beaches, winter sun and its house prices - but is it a safe investment? Ginetta Vedrickas investigates The British love affair with Goa is easy to understand. In contrast to the frenetic pace of most of India, a languid calm prevails, where the dry heat and dust of the interior seem a long way distant. On the south-west coast, with 50 miles of beach washed by the Arabian Sea, Goa was under Portuguese rule for 400 years and, although it became an Indian state in 1961, the region still has a laid-back, European feel. Dilapidated colonial buildings peep out from its luscious rainforest, but pockets of smart, new development are increasingly common, attracting growing numbers of Britons looking for a slice of paradise to call home. Goa is India's most popular tourist destination, with about 40 per cent of visitors coming from the UK. The 1970s may have attracted hedonistic hippies, but today it is mostly package holidaymakers who venture here, courtesy of the 850 charter flights per year. The government is trying to replace the scruffier tourist fringe with upmarket hotels, and five-star venues such as the Radisson, Intercontinental and Marriott are starting to appear. After you land at Dabolim airport, your age and lifestyle may determine your destination. Northern Goa, near the capital, Panjim, boasts the liveliest beaches and mass development. The south is quieter and less developed, attracting older buyers seeking solitude. Axiom Estates sells property across India from its offices in Calcutta, London, New York and Dubai, and increased demand for Goa has prompted it to open an office here. Typical developments for sale include Sapana Habitat, where two-bedroom apartments start from £32,000. Ten minutes from the popular Calangute and Baga beaches, and near buzzing Panjim, its on-site amenities include a communal pool, clubhouse and play area. Rajesh Goenka, Axiom's chairman, says it appeals to younger British buyers looking for a base near Goa's liveliest spots. In her view, Goa may prove to be a better investment than many of India's tier one cities such as Delhi and Mumbai. Goa is firmly on the growth path, she says. It is undervalued but you are cushioned by a great lifestyle. Goa also masks the extremes of poverty in the rest of the country. Workers here still toil in the paddy fields but tourism is the main industry and locals are proud of their tolerant reputation. Bars and beaches throng with scantily clad tourists and lenient tax rules mean that alcohol is cheaper here than elsewhere in India. Thanks to its low cost of living, it is still possible to find apartments for £10,000 in the more remote south, and a typical meal of Goan fish curry washed down with locally brewed Kingfisher beer costs as little as £5 for two. Many Britons have bought holiday homes here, although, because foreign ownership is theoretically not allowed, figures are vague. Only non-resident Indians (NRIs) and persons of Indian origin (PIOs) can legally own property in India. Yet many foreigners have circumvented the rules by forming companies, which are allowed to buy, or by staying in the country for more than 183 days and then claiming residency. So far, these methods seem to have worked in Goa, but recent government corruption has unsettled many British owners and potential buyers. Precious rainforest has been sold off for development but construction has stalled until a new master plan for Goa is announced later this year. Developer N K Naik, of Sapana, who has been building since 1972, describes buying in Goa as a minefield for foreigners. Several Sapana developments are on hold until the rainforest plan is finalised, but Naik is confident of his developments' legality. I've been here long enough to know that this [rainforest] land should not be built on. We want development but not at the cost of the environment. Yet some buyers are concerned that they have put deposits on projects that may never be built. Others claim that India's lack of transparency in relation to foreign ownership also makes buying here a worrying prospect. Paul, a British buyer who refuses to give his full name for fear of reprisals, says: I know owners who have asked too many questions and been kicked out, leaving their property behind. Paul formed a company and paid £25,000 to a small local developer. His main worry is being unable to register the title under his own name and says others are in a similar position. Savills is selling to NRIs and British buyers with no Indian connections. Sheetal Halai, of its South Asia branch, says that buying in Goa, and throughout India, is safe if approached through the right channels. We wouldn't risk our reputation if buying here wasn't safe, she says. We have handpicked our developer and are absolutely confident of their
[Goanet] Property in Goa: Heaven on hold as Goa awaits its fate
Telegraph, UK, 18 Nov 2007 Property in Goa: Heaven on hold as Goa awaits its fate Britons love it for the beaches, winter sun and its house prices - but is it a safe investment? Ginetta Vedrickas investigates The British love affair with Goa is easy to understand. In contrast to the frenetic pace of most of India, a languid calm prevails, where the dry heat and dust of the interior seem a long way distant. On the south-west coast, with 50 miles of beach washed by the Arabian Sea, Goa was under Portuguese rule for 400 years and, although it became an Indian state in 1961, the region still has a laid-back, European feel. Dilapidated colonial buildings peep out from its luscious rainforest, but pockets of smart, new development are increasingly common, attracting growing numbers of Britons looking for a slice of paradise to call home. Goa is India's most popular tourist destination, with about 40 per cent of visitors coming from the UK. The 1970s may have attracted hedonistic hippies, but today it is mostly package holidaymakers who venture here, courtesy of the 850 charter flights per year. The government is trying to replace the scruffier tourist fringe with upmarket hotels, and five-star venues such as the Radisson, Intercontinental and Marriott are starting to appear. After you land at Dabolim airport, your age and lifestyle may determine your destination. Northern Goa, near the capital, Panjim, boasts the liveliest beaches and mass development. The south is quieter and less developed, attracting older buyers seeking solitude. Axiom Estates sells property across India from its offices in Calcutta, London, New York and Dubai, and increased demand for Goa has prompted it to open an office here. Typical developments for sale include Sapana Habitat, where two-bedroom apartments start from £32,000. Ten minutes from the popular Calangute and Baga beaches, and near buzzing Panjim, its on-site amenities include a communal pool, clubhouse and play area. advertisement Rajesh Goenka, Axiom's chairman, says it appeals to younger British buyers looking for a base near Goa's liveliest spots. In her view, Goa may prove to be a better investment than many of India's tier one cities such as Delhi and Mumbai. Goa is firmly on the growth path, she says. It is undervalued but you are cushioned by a great lifestyle. Goa also masks the extremes of poverty in the rest of the country. Workers here still toil in the paddy fields but tourism is the main industry and locals are proud of their tolerant reputation. Bars and beaches throng with scantily clad tourists and lenient tax rules mean that alcohol is cheaper here than elsewhere in India. Thanks to its low cost of living, it is still possible to find apartments for £10,000 in the more remote south, and a typical meal of Goan fish curry washed down with locally brewed Kingfisher beer costs as little as £5 for two. Many Britons have bought holiday homes here, although, because foreign ownership is theoretically not allowed, figures are vague. Only non-resident Indians (NRIs) and persons of Indian origin (PIOs) can legally own property in India. Yet many foreigners have circumvented the rules by forming companies, which are allowed to buy, or by staying in the country for more than 183 days and then claiming residency. So far, these methods seem to have worked in Goa, but recent government corruption has unsettled many British owners and potential buyers. Precious rainforest has been sold off for development but construction has stalled until a new master plan for Goa is announced later this year. Developer N K Naik, of Sapana, who has been building since 1972, describes buying in Goa as a minefield for foreigners. Several Sapana developments are on hold until the rainforest plan is finalised, but Naik is confident of his developments' legality. I've been here long enough to know that this [rainforest] land should not be built on. We want development but not at the cost of the environment. Yet some buyers are concerned that they have put deposits on projects that may never be built. Others claim that India's lack of transparency in relation to foreign ownership also makes buying here a worrying prospect. Paul, a British buyer who refuses to give his full name for fear of reprisals, says: I know owners who have asked too many questions and been kicked out, leaving their property behind. Paul formed a company and paid £25,000 to a small local developer. His main worry is being unable to register the title under his own name and says others are in a similar position. Savills is selling to NRIs and British buyers with no Indian connections. Sheetal Halai, of its South Asia branch, says that buying in Goa, and throughout India, is safe if approached through the right channels. We wouldn't risk our reputation if buying here wasn't safe, she says. We have handpicked our developer and are absolutely confident of their quality and integrity. Savills is marketing
