NEW DELHI: The idyllic tourist haven of Goa is experiencing a sharp correction in real estate prices and hotel room tariffs this year for the first time since its post-pandemic boom. Real estate and hospitality industry insiders say rates have fallen by nearly 15-20% this calendar year.
Experts term the trend as part of a 'healthy cycle' that would create stronger foundations for future growth.
"We are seeing a substantial correction in rates across Goa, both in hotels and long-term rentals, with rates coming down by nearly 15-20%," said Nikhil Sharma, MD and COO (South Asia) at Radisson Hotel Group. He said the most visible drop has been in North Goa hotels, particularly in the free and independent traveller segment.
The residential rental market has also witnessed a significant impact, especially in the group housing category. "Overall, this correction is healthy for the market. It ensures affordability, stimulates demand, and builds long-term stability for both villa owners and hoteliers," said Sharma.
The stabilisation in villa prices in Goa should be seen as a 'healthy' sign for the market, said Aditya Kushwaha, CEO and director, Axis Ecorp.
He noted that the current phase is creating more realistic entry points for buyers, especially non-resident Indians who continue to see strong lifestyle and investment value in second homes. "Villas in North Goa, for instance, saw a jump of nearly 30% since 2022, but prices have now steadied as oversupply and more cautious buyer sentiment have come into play," he said.
The villa market in North Goa faced price corrections in the first half of 2025 because of oversupply, said Deepak Jain, founder of Mayfair Consultants. "In contrast, South Goa continues to maintain strong value owing to restricted supply," he added.
Jain said the market was appealing over the past two to three years in terms of rental and capital values, but rentals have since plunged due to the influx of new hotels and villas.
Despite the weak price trend, several property developers from across India are continuing to launch new projects in Goa. Developers term the current period as a 'cooling-off' phase due to the increased supply of new hotels and villas. However, the outlook remains optimistic as new infrastructure projects are getting launched improving connectivity across India.
Amrita Gupta, director of Manglam Group said the affordability factor should act as a catalyst for fresh demand in the festive season, especially with North Goa already accounting for over 60% of residential traction.
"We see this as a moment of consolidation that will pave the way for sustainable growth and continued demand in Goa's second-home market," said Kushwaha, who is executing a gated villa project in Goa.
Experts term the trend as part of a 'healthy cycle' that would create stronger foundations for future growth.
"We are seeing a substantial correction in rates across Goa, both in hotels and long-term rentals, with rates coming down by nearly 15-20%," said Nikhil Sharma, MD and COO (South Asia) at Radisson Hotel Group. He said the most visible drop has been in North Goa hotels, particularly in the free and independent traveller segment.
The residential rental market has also witnessed a significant impact, especially in the group housing category. "Overall, this correction is healthy for the market. It ensures affordability, stimulates demand, and builds long-term stability for both villa owners and hoteliers," said Sharma.
The stabilisation in villa prices in Goa should be seen as a 'healthy' sign for the market, said Aditya Kushwaha, CEO and director, Axis Ecorp.
He noted that the current phase is creating more realistic entry points for buyers, especially non-resident Indians who continue to see strong lifestyle and investment value in second homes. "Villas in North Goa, for instance, saw a jump of nearly 30% since 2022, but prices have now steadied as oversupply and more cautious buyer sentiment have come into play," he said.
The villa market in North Goa faced price corrections in the first half of 2025 because of oversupply, said Deepak Jain, founder of Mayfair Consultants. "In contrast, South Goa continues to maintain strong value owing to restricted supply," he added.
Jain said the market was appealing over the past two to three years in terms of rental and capital values, but rentals have since plunged due to the influx of new hotels and villas.
Despite the weak price trend, several property developers from across India are continuing to launch new projects in Goa. Developers term the current period as a 'cooling-off' phase due to the increased supply of new hotels and villas. However, the outlook remains optimistic as new infrastructure projects are getting launched improving connectivity across India.
Amrita Gupta, director of Manglam Group said the affordability factor should act as a catalyst for fresh demand in the festive season, especially with North Goa already accounting for over 60% of residential traction.
"We see this as a moment of consolidation that will pave the way for sustainable growth and continued demand in Goa's second-home market," said Kushwaha, who is executing a gated villa project in Goa.
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