I have wrote in a previous article about how the Canary Islands are one of the strongest locations for a property investment. They have been for years and their incredible popularity with holiday makers stands them in good stead to remain strong investment destinations for the foreseeable future. I also wrote that one of the main reasons for the Canary Island's popularity is the favourable climate and weather almost all year round, and in that respect you could call Goa: India's Canary Island.
Goa's climate is slightly warmer than the Canary Islands almost all year round and most of Goa's beaches are world class; always a factor where the water is warm enough to swim in. Because of Goa's favourable holiday climate a cycle has begun:
Tourism to Goa is rising rapidly, and the more it rises the more the economy benefits, the more tour operators and airlines start to offer flights and package deals, and the more activities become available for people to enjoy on holiday, which then makes a holiday there more appealing and keeps tourism growing. And because of the duration of good weather it shares the Canary Islands advantage of all the beaches not being packed out for a few weeks in the year. As the holiday season is spaced out more, so there is more space on the beaches.
Growing tourism to an under-developed location, and all the development and expansion it brings to said economy, has a long history of upping foreign investment in every area of the economy including foreigners investing in property -- this in turn further escalates the rate of development in the economy.
This cycle has seen capital appreciation in Goa fix itself around the 25 - 30% mark and the potential for buy-to-let purchases appear on the horizon before getting closer to being a reality. Total transaction costs in India are between 7.5% and 17%, and Capital Gains tax is 20.4% but is waived if the gain is reinvested in further Indian real estate within six months.
India has expanded rapidly since it opened up the economy and brought about reforms to derestricted trade and export in the early 90‘s. Real GDP growth then rose to 5.8% between 1993 - 2002, at which point it rose to 7% in 2003 and 2004, 9.2% 2005 and 2006. The economy is expected to grow by 8% in 2008, and India is already the 4th largest economy in the world.
In such a rising economic powerhouse, Goa has recently been pinpointed as one of India's great growth centres, and with property prices in Mumbai, India’s financial capital now the highest in the world at $9000 per sq.m, it is easy to see why shrewd investors are staking their claim to a piece of Goan real estate while prices are low.
Find out more about Goa investment property at: http://www.davidstanleyredfern.com/investment-property/goa/
Media enquiries should be directed to Liam Bailey: media@davidstanleyredfern.com
About the Author
About David Stanley Redfern
David Stanley Redfern Ltd is one of the U.K.'s leading overseas property investment specialists. The reasons for this are an incomparable range of international properties spanning 40 destinations worldwide, and unrivalled customer care, which lasts long after the purchase has been completed.
