Property is definitely one of the key areas for investment in Goa.

Property is definitely one of the key areas for investment in Goa. Real estate has been on the roll last couple of years, sending land prices sky rocketing.

Goa has seen an average 8% to 10% growth in land values since 1995. And the state along with the rest of the country faced a lull period with prices falling from 2000 to 2003; it witnessed a sudden boom in 2004 with prices rising an average 30%. Land value in capital Panaji has doubled in the last one year while other places across the state have seen a steady 20% increase.

Presently capital Panjim is the most expensive place to acquire land. The average cost of an area here rose from Rs 25,000 per sq mts to Rs 35,000 per sq mt, with prices touching Rs 50,000 per sq.mt is crème locales like Dona Paula and other water fronts. Calangute and the northern coastal belt, comes a close second with the average start up price for a property being Rs 25,000/sq mts, costs however increase with proximity to the sea…

But head to south Goa, and you’ll probably get a better deal. Prices here are at least 30% lower than northern coast with start up rate for a place near Colva beach ranging between Rs15,000 to Rs18,000 per sq mts. Earlier speaking to ET, Darryl Pereira, CEO, Reira Group, “The social scene in north Goa is much better than in south Goa and this makes a big difference. Everyone wants a place in Calangute.” Beaches in the north are abuzz with activities; north is popular mainly for its night life. In comparison, the coastal belt of southern Goa is relatively quite and known more for its picturesque locale.

Demand for land is not only along Goa’s coastal belt but also hinter-lands, having proximity to the city. Demand for land comes mainly from two segments –– the big hoteliers looking to set up a resort here or from people scouting for a holiday home. People mainly from metros like Delhi, Mumbai, Bangalore and also Gujarat envisage a holiday home in Goa. According to real estate developers, nearly 75% of investments in Goa are by Indians living outside state, looking for a holiday home. NRIs, Pose constitute 15% of the demand, while remaining is from within Goa.

Besides this, Goa is also home to several pharmaceuticals like Blue Cross Labs, Knoll Pharma, E-Merck India, Colorcon Asia, Geno Pharma, Cadila Healthcare, Glenmark, Ratio Pharm India, Ranbaxy, Cipla, Indoco Remedies, Vicco Labs, Lupin, Unichem, Wyeth, Sander Pharma, Sanofi-Aventis, Zandu Pharma and many more.

Goa exports pharmaceuticals worth approximately Rs 550 crore annually and produces one-tenth of the pharmaceuticals manufactured in the country, amounting to Rs 2,800-crore businesses. Pharmaceutical giant Cipla’s Meditab Specialties has already begun work on the Rs 500 crore worth SEZ, which is expected to further boost the pharmaceutical segment here. This, in addition to state government's plans to develop non polluting industries, SEZs and IT parks along with state's plans to provide broadband wi-fi facility everywhere will sure add value to any investment.

Courtesy: E.T. INITIATIVE Zone WESTERN BUSINESS REVIEW