Vladimir Filonov

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Goa is a very small state in a very large country, as well as one of the top seaside holiday destinations in the world. Thousands of Russians and Brits call it home between November and March. Recent media reports describing local government allegedly “squeezing out” Russians in some sort of orchestrated campaign have done little to change that.

Considering that both Russians and Brits need visas to visit India, it is next to impossible to ever receive a long-term residence, and property ownership for foreign residents is prohibited, many true Goa fanatics go to considerable lengths to keep coming back and hanging around.

Those who manage continue to enjoy all of the local mod cons, such as horrible roads and chaotic traffic, full of wandering cows and often not-so-sober fellow expats, most of whom had never ridden a motorcycle before they arrived; markets full of street beggars and bright, Nepal-made clothes that hardly ever survive one wash; packs of stray dogs that bark all night and attack your pets during the day; one western-quality supermarket and one cinema in the entire state, to which you will never get unless you are willing to spend two hours driving 20 kilometers. The list goes on.

Despite all of this, thousands of foreigners have chosen Goa as their home and remain content. The real estate market here is going strong, and prices are quite comparable to many places in Europe.

“Many people fail to realize that real estate ownership in Goa is not cheap. People come here, they see that a kilo of tomatoes is pretty cheap, and they assume that properties are just as cheap, compared to their home countries, but they aren’t,” says Anna Rogovskaya, owner of Ananta, a Goa-based real estate agency. A Russian expat herself, Rogovskaya says her business was originally intended to serve primarily Russians but, in reality, locals, many of whom are quite well to do, comprise most of the clientele.

“A Russian can come and see an 800 square meter plot of land offered for $50,000 and say, “Wow, this is way too expensive,” and then the next day an Indian buyer will come and see the same plot, and say, “Wow, great land, $48,000, I am buying it,” she says.

Many westerners are able to survive comfortably in Goa on a few hundred dollars a month, but Rogovskaya warns that home ownership will not be such a giveaway.

“This is not a market for people who have limited resources,” she insists. “It’s a place for those who have the money.” She says that older, second-hand properties, which you can buy from $25,000 for a one-bedroom apartment, are often cheap for a reason.

“Most Indian buyers prefer to build themselves, or at least buy a property built within the last two to three years. Ten years is a very, very long life for a property in Goa,” she says.

Masha and Andrei built their house themselves on a tiny plot of land that is legally registered in the name of their Indian acquaintance, a member of the family they befriended when they first came to India a number of years ago. They insist they see no risk. They do not go back to Russia much, preferring to travel to other countries, or, as many Russian Goans do, go to Nepal for the summer, where visas for re-entry to India can be obtained. The house overlooks a river delta in a remote spot near Goa’s northern border, and bars on the windows remind of local dangers. Water is stored in a plastic tank on the roof, on which there is also an obligatory roof terrace, a must-have feature of all Goan housing. Bananas grow on a palm tree outside, but local wild monkeys have something to say about it. Trash is burned, somewhat unfriendly to the environment, in a specially built concrete-laced hole using gasoline brought in a plastic bottle.

Paradise comes at a price — and, if you want to live according to European standards, as do most British expats in Goa, the price is higher. According to Anna Rogovskaya, in the more developed Southern Goa, a one-bedroom apartment in a modern newly built complex one kilometer from the sea costs $35,000, while a three-bedroom townhouse built to European standards on a 600 square meter plot a few hundred meters away from the sea in Anjuna, a famous seaside town in Central Goa known for its market and once-raging beach rave parties, on which the plug has been now pulled by the authorities, can cost up to $170,000 and more.

Real estate ownership among Russian expats in Goa remains scarce. The infamous restriction on ownership for foreigners is a deterrent for some, although many of those who are determined enough to be willing to accept all of the other local inconveniences circumvent it by setting up an Indian-based business and registering the company as an owner. The market itself drives away some others.

“Russian buyers come to Goa to live on the shore, and they do not even consider buying anything more than a kilometer away, while, at the same time, the British buy property in developments as far as five kilometers inland and more, where prices are cheaper, infrastructure is more suitable for permanent living rather than a short holiday, and land ownership is less complex than on the shoreline, where it is full of restrictions and land disputes,” Rogovskaya says.

Yet rental prices remain cheap, with nice two-bedroom properties a stone’s throw from the sea going for few hundred dollars a month, meaning that it is quite possible to rent full-time for 30 years and not spend anywhere near what you would need to buy or build, and then maintain, a house that would stand that long. Rental prices are expected to fall in the upcoming season because the Indian government, in an attempt to flush out the semi-permanent residents on tourist visas, announced that those will no longer be issued for more than one month.

Anton Nossik, the former managing director of Rambler and one of Russia’s best-known Internet personalities, is one of the devoted seasonal residents of Goa and has done a lot to popularize the destination through his blog. He told REC that he did not buy any real estate there and does not intend to.

“If you only live there four months a year, it would make no economic sense to buy anything because it’s much cheaper to rent — and even if it wasn’t, the Indian government’s policy to constantly change visa rules basically means that you can buy a house, but have no guarantee that next year you will be allowed to have access to it. This is a factor in many people’s decision not to buy,” he said. He added that many people, in his view, would not be comfortable setting up fake companies or cutting corners in order to buy, exposing their investment to potential risk.

In Nossik’s opinion, the country’s policy that prohibits real estate ownership for foreigners creates an artificially regulated property market in Goa that cuts out the majority of potential buyers who have money, a record of buying properties thousands of kilometers from their main place of residence, and a tradition of buying real estate for investment purposes.

“I do not see a lot of Indian buyers there buying second homes or investment properties,” he told REC. “All I see is people who are moving to Goa from other regions of India, and that means it is not a healthy property market.”

Nossik says he will keep coming to Goa, all these hurdles aside, as he sees no alternative that would match its appeal, which comes from a combination of culture, climate and geographic location. “It is not so far from Russia, almost universally English-speaking, has an appealing climate and is not expensive — in my mind, there is no real alternative to Goa,” he said.

Rogovskaya believes that Northern Goa, where until now a lack of western infrastructure has kept prices lower than in the South, will be developed to the same standard within a few years, and presents a nice investment opportunity. “The prices in the North now are three times lower than they are in the South, and there is no any real reason for them not to level out when the infrastructure is built,” she says. “It makes no sense whatsoever to try and buy to rent out, because of how cheap rentals are, but you can make money on the appreciation over time.”

She insists that many scare stories about fraud, evictions and such like usually have their root in the victim’s own obvious mistakes, even though some are true.

“The same people who, in Russia, would never give a large sum of money to a total stranger without so much as a receipt, come to Goa and often get misled by the sunshine, the relaxed atmosphere and the friendly locals, who smile all the time,” Rogovskaya says. She believes that the common sense and due diligence that one would apply elsewhere should help one avoid many problems with business dealings in Goa as well. The rest, according to her, is usually due to a failure to learn local laws, a desire to cut corners or a lack of cultural sensitivity to local traditions and customs. “This is India,” she says, “It only makes sense to buy here if you love India.”