Until recently, the process of acquiring a house or apartment in Goa for foreign investors was akin to walking through a minefield. Mysterious laws on property and money circulation, bureaucracy that shocked even Russians - all this stopped many buyers. However, due to constructive changes in legislation and a more flexible approach of buyers to the process of purchasing real estate, demand has increased significantly, although supply remains limited.
Cheap and... beautiful
Goa is called the gift of the gods to the inhabitants of India, and also the Asian Rome. The advantages of this coast are obvious: these are snow-white sandy shores washed by the crystal-clear waters of the Arabian Sea, and a warm sunny winter, and an easy attitude to life, and a rich cultural heritage, and luxurious architecture reflecting centuries of Portuguese rule. And finally, exceptionally low real estate prices. For $25,000 you can buy a studio apartment in a gated complex with a swimming pool and tennis courts surrounded by coconut groves. With $88,000, you can already purchase a separate three-bedroom villa located near the best golf courses and a five-star hotel and airport under construction.
Portuguese colonists left Goa in 1961, and since the late 1960s, exotic lovers have been attracted to this region. In the "Beatles" time, Goa was a real Mecca for hippies. The popularity of the coast among ordinary tourists soared in the 1980s - and to this day it is one of the most fashionable places to travel.
From Moscow, direct charter flights to Dabolim Airport, the only one in Goa, are operated by Vim-Avia and Transaero from October to May. The rest of the year, you have to fly to Bombay by Aeroflot, and then by a local flight to Dabolim.
North Goa is quite different from South Goa. Northern resorts such as Calangute, Baga and Candolim are ideal for young people who prefer beach parties, nightclubs and bars with noisy music. The south, with amazing sandy beaches and five-star hotels in Colva and Benaulim, is a traveler's paradise. There is peace and quiet here and it is not surprising if you happen to encounter a sacred cow on the beach. "The north of Goa is very lively - it's a place where you can find anything," says Claire Sutton, who runs the website A Place in the World, which sells apartments and villas under construction in Goa, "but personally I prefer the south - it's much quieter there."
What and where to buy?
Most of the real estate under construction is located in the north, but in the near future, construction is expected to increase in the south, where it is planned to create a new highway. Most of the demand for real estate in Goa is made up of British buyers, but the number of Russian buyers is steadily growing.
So, what can you buy here? In the north, closer to the beaches of Morjim and Mandram, apartments and houses in small protected residential complexes in the town of Assagao are for sale. Apartments with one or two bedrooms and semi-detached buildings with two or three bedrooms are offered for sale. It is planned to create a gym and a swimming pool on the territory of the complex. And all this is just a five-minute drive from the beach. The apartments are located in two-storey buildings, and their cost ranges from $50,000 for a one-bedroom apartment to $135,000 for a three-bedroom villa. The construction was started at the end of 2004, and its completion is planned for the end of 2006.
Interestingly, the first golf courses outside the UK, the ancestors of this sport, were built in India in the middle of the XIX century. In Goa, this sport is quite well developed. The first luxury residential complex with a golf course is being built in Sirvoi Quepem, a half-hour drive from Dabolim Airport. In addition to a 9-hole golf course, the complex will include a riding school, tennis courts, swimming pools and a shopping center. Buyers of villas can choose a typical project or build a custom-made house. For the period of your absence, a special manager may be appointed who will operate the property or, if you wish, will be able to rent it out. "The rent for an ordinary apartment in a northern resort is on average from $350-500 per week," says Claire Sutton, "but for a property with a golf course, I think you can get $200 per person per week." During the period of tourist activity, for example, at Christmas and New Year, the rent is doubled.
The prices in the Sirvoi Quepem project are as follows: $33,000 for a studio apartment, $58,000 for a two-bedroom apartment, $88,000 for a three-bedroom villa and $167,000 for a four-bedroom mansion.
The Goa authorities are trying to prevent the development of the coastline, which has hopelessly ruined most resorts around the world. Construction is prohibited closer than 500 m from the sea, so not many buyers will have direct access to the shore. For example, near the resort of Kolva in the south, Homes4living sells building plots near the coast - from $20,000 each. The cost of building a three-bedroom villa here will be about $65,000.
Purchase technologies
In India, non-residents are prohibited from owning property. There are two exceptions: you must either live in India for 182 days a year, or create an Indian company that will buy the property. The first option is clearly inconvenient for most buyers who are just looking for a holiday home, the second is much more attractive. In the case of a company, only two directors are required, usually the buyer and his spouse act in this role, and an employee who provides annual invoices. "It's very easy to create a company," says Claire Sutton. "It costs about $500."
One of the most serious obstacles to acquiring real estate in India is making a profit from the resale of real estate. It is allowed to take out only the initial investment, but it is forbidden to take out the profit from the sale. There are complex methods of avoiding this ban, but the easiest way is to hide the true value of the transaction from the authorities. Isn't that a familiar maneuver? Nick Gregor of US Holidays, a real estate company in Goa, advises buyers to take a closer look at the confusing property laws in India. "You have to know exactly who owns the land when you buy it," he says. "Ask that you be provided with documents confirming the clean and unencumbered ownership." According to Indian inheritance laws, property passes from a parent to each of his children and the sale of a share of inherited property without the consent of all available heirs is prohibited. If you decide to purchase real estate from one of these heirs, you will have to put a lot of effort into identifying all the relatives and getting their consent. There are curious cases when local taxi drivers offered naive foreigners to purchase property for them in their own name. The buyer handed over the cash - and the taxi driver, of course, disappeared forever. "It is especially important here to purchase real estate through a company with a stable reputation," recalls Nick Gregor.
Acron, one of the largest real estate development companies in Goa, is currently building in the north of the region, in Siolim. The cost of a one-bedroom apartment here is about $28,000, a three-bedroom villa will cost about $115,000. Construction has just begun and will last at least two years. Currently, the building site is a green area, and potential buyers will have to stretch their imagination to imagine the final result. However, Acron has already earned a good reputation by completing a number of projects that can be viewed "live".
Bright prospects
One of the advantages of India over other emerging real estate markets is that the country's economy as a whole is growing. In the field of information technology, pharmaceuticals, automotive and space technologies, India is among the leading countries. More than 40% of NASA scientists, for example, were educated in India, and among the heads of some of the world's largest companies, such as Pepsi, it is often possible to meet people from India. The demand for good quality real estate is growing due not only to foreign investors, but also to the growing prosperity of the Indian middle class, who also want to spend their holidays at sea. As a result, the growth in real estate prices, according to Nick Gregor, is about 15% per year and is likely to progress.
The Indian government, intending to profit from the construction boom, has budgeted a property acquisition tax of 3.5%. But, as often happens in India, this budget item has not been approved and may never be approved.
