INVESTORS AREA

Investment in GoaInvestors Guide
It is common knowledge that the Goa real estate market offers fabulous returns on investment and many investors, from all over the world, home in like bees to reap the rich dividends that an investment in Goa real estate offers.
The opportunity is all the more attractive as in addition to year-on-year value appreciation, Goa property can also earn substantial recurring income for investors who rent out their property. High cost of hotels and shortage of rooms during holiday seasons have created a booming market for serviced apartments and holiday villas, that further add to the earning potential of an investment made in Goa property.
However, one must tread with caution, have full knowledge of the local laws, sentiments & market conditions and observe all possible due-diligence to ensure that safety and security of the investment. Unfortunately, in Goa, this is a completely unorganised sector with very little standardisation, norms, professionalism and transparency (the saying goes that... "In Goa, everyone from the taxi driver to your room boy at the hotel, is an aspiring real estate agent"). Many have burnt their fingers for not exercising caution and following required due-diligence processes.
We strongly recommend that if you are not personally resident or do not have a local office with capable staff in Goa then do not attempt to undertake any real estate construction work by yourself. It is much wiser and far safer to join hands with a reliable and well established local partner/developer who has the wherewithal, stature, track-record and local presence to ensure the security of your investment and the success of the real estate venture.
In the interest of Safety, Security and returns on investment, the following two Investments Routes are the best suited to those investors who are not full time resident in Goa.

Joint Venture Projects Goa1.  New Projects : In Joint Venture with established Goan Builders

Min Investment - Rs 50,000,000/- (Rs. 5 Cr) and above.
Returns - Typically range from 40% to 70% depending on the project and terms
This format offers an excellent opportunity for investors to partake in returns from lucrative real estate development projects in Goa. It offers security of investment plus the peace of mind of working with a reputed and well established Goa builder who takes care of permissions and all local issues.

Highlights

  • 50% or greater Return on Investment for the Investor.
  • Investment is Secure - Builder signs a legally binding “Agreement of Sale” in advance committing to transfer Built-Up Area to the investor against the investment made.
  • Timely Returns – Completion / delivery date is also committed in writing by the builder in the “Agreement of Sale"
  • Safety of Returns – Investor gets clear Built-Up Area to sell or retain as he wishes (This eliminates the possibility of any manipulations that could arise under a “share of profit” or other such arrangement) Transparent dealings.
  • Complete peace of mind for Investor as builder takes complete responsibility for all handling all local issues including permissions, and all aspects pertaining to construction and completion of the project.
  • Quick Start-Up – The initial investments and time spent in searching property, finding a suitable plot and then bringing it to a stage where a project can be considered, has already been completed by the time the investor enters the picture. This means faster returns for the investor.

 2.  Pre-Booking Units with Developers

Min Investment - Rs 20,000,000/- (Rs. 2 Cr) and above.
Returns – Typically range from 15% to 40% depending on market situation and resale price.

  • An investor or group of investors can bulk buy units even before the pre-launch stage of a project.
  • Paperwork for the transaction is same as that for any normal purchase, with an “Agreement of Sale” signed between both the parties for the units to be purchased.Special rates of up to even 20% or more below official prices can at times be negotiated with the developer.
  • Investor’s gain is the difference between market rate and the special rate he has been offered for the bulk buy.
  • Investor is free to re-sell his units at any time, even during the construction period to realize his profits or stagger his returns.

Zones in Land in GoaDo’s & Don’ts for Investors
If you do not live in Goa or do not have your own office and manpower resources at a local level, it is not advisable to try and independently undertake real estate development/construction work – whether for business, or personal use.
It is far wiser, safer and easier to achieve your investment / personal property goal by tying up with and working through a reputed local builder who will take care of all the local issues, permissions and other matters required for successfully undertaking and completing the development work. Certain factors and requirements are unique to Goa and need local knowledge, presence and handling to ensure smooth working.

A few of these factors are listed below :
Many laws date back to pre-independence Portuguese times and may differ substantially from elsewhere in India. Local knowledge, legal counsel and experience is therefore a must to appreciate all the legal requirements and authenticate important documents like ownership titles, deeds, and all other legal matters.
Goa has stringent development regulations so as to maintain the beauty and promote eco-friendly and inclusive development in the State. Any development activity must strictly adhere to the norms specified by the various departments.
As Goa is a coastal state, much of the land, especially prime land near beaches and rivers, fall under the Coastal Regulation Zone (CRZ) where no construction work may be permitted at all.
Goa PropertyFurther, all land in Goa is “Zoned” and such zoning defines the amount of construction permitted on the land. It is imperative to verify the correct zoning applicable to a particular land. Some zonings may also be under dispute or review, so here too a further in-depth knowledge is required to ascertain the risk or probability of such zoning being changed in the future.
As Goa is mostly rural, most land is under Panchayat rule. Interacting with and obtaining approvals from the panchayats and other local bodies is critical to the success of any development project.
Rampant and unplanned development in Goa had led to agitations from various citizen’s groups and even forcible stoppage of work at sites. New development must take such concerns into account and may require close liaison with local citizens before and during the project.

For details or any enquiry related to investement in Goa. Do Mail us at invest@landingoa.com