Excess supply keeps villa prices in Goa flat in first half of 2025

Panaji: After two years of eye-watering prices, Goa’s luxury housing market has stabilised for now. The average value of villas in North Goa plateaued, largely due to an oversupply of both new villas and resale properties, said international property consulting firm Savills India in a report for the Jan-June period.

The report also indicates that the glut is driven by investors exiting the market and a mild dip in demand.

“Due to villa supply being in excess of demand, we expect limited capital value appreciation in North Goa villas by the end of 2025. Prices may remain stable for the next six months, likely rising by 5%-10% in the next 12 months as demand-supply dynamics change due to robust infrastructure upgrades,” said the Savills India research report for North Goa.

Since 2022, prices of villas in North Goa have appreciated by 30%.

“Goa’s current oversupply is skewed towards 200-300 sqm villa projects, which, while being attractive earlier from a rental return perspective, are now losing charm due to increased supply, higher capital values, and consequently reducing rental returns. The demand continues to be strong from home buyers seeking larger, quality homes more for the purpose of second homes and long-term appreciation,” said Shveta Jain, managing director for residential services, Savills India.

Despite investors hitting the pause button, developers continue to buy land in Goa for future expansion and for gated villas and townships. Savills India says key developers such as DLF, Eldeco, Prestige Group, M3M India, and Neworld Developers recently announced new projects in Goa’s market, which led to firming up of pricing for land parcels.

“We continue to see robust and sustained demand for premium residential developments in Goa, particularly in North Goa. We believe the fundamentals driving demand in Goa — lifestyle appeal, improving connectivity, and the rise of discerning domestic buyers — remain intact,” said Samujjwal Ghosh, CEO, The House of Abhinandan Lodha.

Amit Chopra, president, national association of realtors, says that Goa’s luxury housing market was overheated and is going through a cooling-off period. He adds that the lull is also driven by a clear mismatch between what investors want and what developers are building.

“The market overheated and there was a cooling-off period that led to a slowdown. Did prices fall? No. The market is starting to turn, it has not turned, but recovery is being seen and it will take six months to a year to set in,” said Chopra.

Jain says that Goa is witnessing a rise in gated villas that offer premium amenities, including better security and modern facilities, in Assagao, Siolim, Anjuna, and Candolim.

While the segment witnessed a slight slowdown in demand from tier-I cities and metros, developers and realtors continue to get significant enquiries from tier-II cities such as Bhubaneswar, Indore, and Surat. “This is expected to drive medium-term absorption of existing inventory and push the market into a phase of consolidation and price stability over the medium term,” said Jain.