Eyeing a lucrative Real Estate Deal – Think Mopa at North Goa

By: Sanjeev Arora, Director, 360 Realtors Finally, 2022, was the year, Indian real estate was yearning for a long. After a muted demand over the past 5-7 years, which was further marred by the onslaughts of the pandemic, Indian real estate looked very promising in the current calendar year. Demand is soaring and inventories are reducing across markets.

Interestingly not just the residential segment but other categories such as offices, retail, hospitality, etc. are also on an upswing backed by normalcy in the market and a resurgent economy.

Revival of Investor Interest In the past real estate held a favorable positioning amongst the investor class. However, the situation altered, as returns and appreciation in realty dwindled. Meanwhile, with the market resurging and sentiments looking bullish, investors are again looking forward to real estate assets. A structural decline in financial markets and visible doldrums in the global crypto assets further reinforce the importance of tangible assets such as real estate.

Exposure of your fund to well-performing realty assets backed by strong fundamental demand can help in mitigating risk, optimizing the fund performance, and help in creating long-term wealth. Likewise, HNIs with portfolio investment should also identify prudent realty deals and make quick move.

Look Beyond Conventional Deals In a time when transboundary real estate deals are becoming common, one has to keep a close eye on emerging opportunities across the length and breadth of the country. While geographical proximity generally dictates investment decisions in real estate, sometimes it is wise to look beyond and identify potential opportunities.

Not always, the best real estate investment is owning apartments in your city, close to Business parks; or owning office space in the city center. Sometimes, some of the best deals might include investing in a stressed fund of a stuck but promising housing project or investing in an eco-resort in a picturesque destination, or putting your monies in a real estate close to a mega airport project.

As the nature of real estate is vast and diverse, so is the potential to reap benefits. All it needs is the ability to examine, where the next story is played out and be available at the right time to maximize your bet.

Mopa Next Big Story in Indian Real Estate The Mopa region is situated in the Northern Goan region adjacent to the Konkan belt near the Maharashtra border. The region is endowed with ample scenic beauties such as panoramic Sahyadri hills, thick eco reserves, enchanting mangrove forests, and exotic rural backyards. The place is a nature’s paradise in the true sense. Yet it has been mostly outmaneuvered by the popular sea beaches and electrifying nightlife of coastal Goa.

However, as MOPA is set to see the commencement of the airport, there is a growing spotlight on the region, and its fortune will change soon.

The INR 2600 Crores MOPA airport, which is developed across 2133 acres, by GMR International is complete and will soon see operation. The initial capacity of the airport, which is at a distance of ~ 35 km from the Panji is 4.4 million passengers and will reach 13.1 million in the future.

The airport will become a gateway to the North Goa and the nearby Konkan belt. It will augment the natural beauty of the region and transform it into a goldmine of real estate investments.

Already 232 acres has been marked for commercial developments comprising 5 star hotels, eco-resorts, convention centers, malls & retail, office spaces, etc in the airport premise.

However, the actual scope of realty growth will be much vaster including close to 5-7 km of radial length near the airport. Major national-level developers are pivoting to the region to develop residential projects, gated villas, cottages, exhibitions & conventions, hotels, farmhouse communities, retail,  and much more.

As demand is skyrocketing property prices are expected to jump steeply. In the MOPA region and nearby places such as Sasoli, property prices are expected to grow at CAGR of 27.8% between FY 23- FY 26, as per the research by 360 Realtors. A similar bull run is expected in the nearby Sindhudurg region, where property prices will grow annually at 25-30% in another 2-3 years.

Plenty of Opportunities in Nature-Based Tourism The beautiful region nestled on the Western Ghats will see plenty of opportunities in concept tourism such as nature tourism, adventure tourism, holistic healing, and retreats, etc. The mega airport project will bring the spotlight on the pristine beauty of the region and help it morph into a bustling ground for nature resorts, Ayurveda massage centers & spas, forest lodges, farmhouse resorts, etc. Even today during extended weekends, hotels & resorts in the region are operating on 100% occupancy due to a rise in tourism, WFH, and workation. In the foreseeable future, tourism will further thrive and grow multifold. This is opportune for hospitality investors eyeing great returns.