Ajit John
PANJIM: The slowdown in the realty market may be an accepted fact but rarely admitted publicly. Construction on existing properties may be ongoing but there has been a distinct reluctance to announce new projects in the state. Now realty brokers in the state claim that demand for flats from those interested in long lease is not encouraging and though demand may not slump it will not be hitting the high notes either.
Pradip a broker based in Old Goa said that he had flats for sale which were not moving. He said “Yes, the location is important, kind of building is important and yes the size of the apartment, but there has been no sale of apartments now for a while. This of course is an all India scenario but it gets noticed very fast over here.”
With regards to leases he said that executives who were either transferred or had taken up assignments with corporates based in Goa was coming in but not in the numbers there were a couple of years earlier. This he said was obviously due to the ban on mining. There were he said enquiries from tourists for short term leases which he did not encourage. He said “It is illegal for me to do that. For such arrangements there are service apartments for such demands. If an apartment is rented out there are so many formalities which have to be completed and which would at times take longer than the duration of those short term leases.”
Another broker who handled enquiries between Panjim and Marcel, Agnelo said that the market was slack. He said “The market has not moved and that is hurting us. Mining is banned and that has had an effect on everyone. Goa has several other industries like the large number of Pharmaceutical companies based here which are doing well. This has meant that there is recruitment of out station talent taking place. This means there is work for us; however that is not the case. Earlier I would get two or three calls from the corporate now I get one or two.”
With regards to budgets he said the senior managers were very clear that it had to be in the city thus increasing the cost. The dramatic increase in the cost of land had an effect on everything. The cost of construction meant that prices were high which then had a result on the rentals.
Another broker said that businessmen from other states who wanted to do business usually wanted to stay on the beach belt since they liked the vibe there, where as those senior management wanted to live in the city because of the facilities like quality schools which would be available.
Isaac a broker who operates in North Goa said that business was even. Rentals in Old Goa was anywhere between Rs 5000 and 6000 and Calangute it was Rs 15,000 for a two bedroom unfurnished flat and Rs 20,000 for a furnished one. He did not foresee a change in the market in the next five or six months. It was a market he said where one would have to hang in. Another broker based in Panjim who did not want to give her name said “The rental market is so bad one would have to invent a new word to describe it. The people who have the flats do not want to reduce their prices and those who need them can’t seem to afford them. Yes at the upper end people are still paying Rs 30,000 or 40,000 a month for a villa but the middle segment is stuck, nothing is moving.” Desh Prabhudessai, President Goa Chapter of CREDAI felt it was not surprising and just indicative of the overall sentiment in the market. He hoped the government would step in and make changes in policy to help the industry along. This industry is certainly living on hope.
