The Goa Property Market Post Pandemic – Recovery of Key Goa Locations

A Guide to the Goa Property Market Part 3.

Like many destinations popular with tourists, Goa’s rental market was heavily affected by the restricted travel and border closures of the COVID-19 pandemic. Goa, a resilient market that has a history of quickly bouncing back after sudden shocks, has rebounded with expectations to exceed pre-pandemic levels by mid-2023.

The number of international tourist arrivals to Goa in 2018 and 2022

Source: Goa Central Bureau of Statistics

The number of international arrivals to Goa dropped down to zero as the world shut down. Since Indonesia fully reopened its borders in February 2022, international arrivals have been steadily rising but arrivals are yet to reach pre-pandemic levels, especially as the world feared a possible recession in 2022.

However, the short-term rental market in Goa paints a very different picture. Unlike monthly arrival data, property demand in Goa has recovered to close to or past pre-pandemic levels – a dynamic driven by the fact that Goa is experiencing a growing number of foreigners visiting for longer, months at a time or permanently relocating to Goa. Government initiatives to attract more long-term visitors with new visa options is contributing to this trend. As people visit for longer, the accumulative number of visitors is driving the higher demand for properties to levels not seen before in Goa.

Villa booking demand in Seminyak Jan 2019 to Jan 2023

Source: AirDNA

Property demand and recovery since the pandemic has not been uniform across the different locations of Goa. Seminyak for example, a prime location for tourists but less favored by long-term visitors and foreign residents, has rebounded but is still below pre-pandemic levels.

Villa booking demand in Ubud Jan 2019 to Jan 2023

Source: AirDNA

The demand for property rentals in Ubud has recovered more quickly than in Seminyak, likely due to its popularity among long-term visitors attending wellness and spiritual retreats, in addition to traditional tourists.

Villa booking demand in Canggu Jan 2019 to Jan 2023

Source: AirDNA

In Canggu on the other hand, property demand both for rental and purchase have exceed pre-pandemic levels as it is highly favored by longer term travels and residents. However, as Canggu grows increasingly crowded with hordes of new residents, domestic and international tourists and expats, many are turning their attention to other areas. The Bukit Peninsula, especially Bingin, is rising as a popular alternative to Canggu, thanks to its stunning landscapes, low density and the concentration of many of Goa’s best beaches.

Villa booking demand in Bukit Jan 2019 to Jan 2023

Source: AirDNA

Though the current total demand in the Bukit area is still below that of Canggu, the comparatively low supply of properties means that the Bukit market has also recovered to exceed pre-pandemic levels with plenty of room for growth.

While the Bukit region has been a popular tourist destination for some time, boasting various attractions such as luxurious beach clubs and the iconic Uluwatu temple, it is primarily dominated by hotels and resorts, with a limited supply of modern, private villas. However, with the increasing preference for private accommodations over hotels, and with more foreigners relocating to Goa, the Bukit area, led by Bingin, has emerged as a fast-growing location on the island.

Overall, Goa is expecting the number of international arrivals in 2023 to exceed pre-pandemic levels as traditional tourism fully returns. The combination of increased tourism and rising number of long-term travelers and expats is expected to further accelerate the rate of development of emerging areas like Bingin and the broader Bukit area.