Sandy beaches, vibe are lures to Goa

The Life: Many Indians in search of a holiday home search start and stop their quest in Goa.

Goa is known for is white-sand beaches. Reuters

Q&A: As a buyer, you are duty bound

Last Updated: June 16, 2011

Can non-resident Indians (NRIs) get a home loan to buy property in India? Many Indian banks have representative offices in the UAE, including the Federal Bank, ICICI, Corporation Bank and the Bank of Baroda, with the latter offering full-fledged banking services.

What is the percentage of loan the bank offers against the value of the property? Prior to the slowdown in 2008, banks offered loans of up to 90 per cent of the property's value. But to guard against potential defaults amid the property sector's crash, the loan value has generally been reduced to 75 per cent, with the rest due from the buyer.

Are there any benefits for NRIs in terms of lower property (stamp) duty? NRIs pay the same stamp duty on property purchases, but the percentage varies across India. However, if the property is rented out, the owner can claim tax-free rental income of up to 180,000 rupees (Dh14,750) a year, although a capital gains tax of 20 per cent is levied above that amount.

The concept of owning a holiday home is relatively new to Indians, considering millions struggle to buy their first homes because of constantly escalating property prices.

But high-net-worth individuals, particularly non-resident Indians (NRIs) from the US and Gulf countries, are jumping on to the holiday-home bandwagon, attracted by the idea of owning a getaway pad - or a cosy home-away-from-home for retirement. Many are likely to turn up at the India Property Show in Dubai this weekend.

Any NRIs worth their salt expecttheir city of choice to meet basic criteria: good infrastructure; a cosmopolitan environment; excellent resale value; and a location far away from the madding crowd. Of course, India's billion-plus population puts paid to this final requirement.

As far as holiday destinations in India go, many believe Goa wins hands down. The allure of white sand beaches, a laid-back vibe and the area's famed seafood-based cuisine is hard to resist. Besides, it is the only place in India where casinos are allowed to operate - even if only offshore on board ships. And although the pace of construction in Goa has been frenetic, it is still possible to find pockets of secluded, well-priced developments.

"I have fallen in love with Goa and keep coming back, even if it's only for a couple of days at a time," says Varun Nagpal, of Vianar Constructions, a Delhi-based developer, who is constructing Sol Sienda in the rustic fishing hamlet of Reis Magos for a clutch of hand-picked clients.

Buyers get better value than elsewhere in India, he says. Sol Sienda has facilities such as a swimming pool, fitted-out kitchens, air conditioners, built-in closets and shower cubicles, which are otherwise considered upscale in India.

Top 5: Second-home destinations in India

1 Goa

2 Noida

3 Gurgaon

4 Bangalore

5 Shimla

A one-bedroom apartment of about 1,000 square feet is available for 3 million rupees (Dh245,480). The beaches of Baga and Calungute, famed for their night markets and rave parties, are a mere 15-minute drive away.

The Quote: He who has seen Goa need not see Lisboa. Portuguese proverb