Goa’s property market is often linked to holiday homes and rental income. But how much can a property actually make when it is used as a short-term stay? Indian founder and investor Akshat Shrivastava has shared the numbers from his own experience, offering a look at the rental income generated by his South Goa villa.Shrivastava, founder of Wisdom Hatch, shared the details in an X post while responding to a discussion around Goa’s homestay market. His post included the property’s nightly rate, estimated occupancy, and the amount he receives from the Airbnb arrangement. He also explained why he continues to hold the property.
A 3BHK villa with a ₹6,000 nightly rate
Shrivastava bought the 3BHK villa in South Goa in 2023. He said he paid around ₹2 crore for it at the time.The property is now managed by an Airbnb management company, which takes care of its day-to-day operations. Guests are charged around ₹6,000 per night to stay at the villa.Shrivastava said the rate is reasonable when divided across the three rooms.“This is quite reasonable,” Shrivastava said, highlighting that the cost per room is just ₹2,000.65% occupancy brings in over ₹14 lakh in gross revenueThe management company estimates that the villa has an average occupancy of 65%. Based on that figure, it would be booked for roughly 237 days in a year.At ₹6,000 per night, those bookings would generate approximately ₹14.2 lakh in gross rental revenue annually.That comes to around ₹1.18 lakh a month in gross revenue. Shrivastava said the management company pays him close to ₹1 lakh each month, taking his annual rental income to nearly ₹12 lakh.
Rental yield is around 6%
Based on the original purchase price, the annual income works out to an estimated 6% yield on the ₹2 crore investment.The property has also increased in estimated value. Shrivastava said it is currently worth around ₹2.7 crore to ₹2.8 crore.However, he said the rise in value is not the reason he is holding the villa.
‘I have no interest in selling it’
Shrivastava said he did not buy the property from a builder with the aim of making a quick profit through resale.He also rejected the idea that he would sell it because of a possible fall in property prices.“I have no interest in selling it,” he said.The founder said he shared the rental figures partly because people had been predicting that he would sell the property. His post was intended to show that a Goa property can also be looked at from the perspective of its rental income.
Why Shrivastava says location matters
The founder also made a distinction between different parts of Goa’s property market.“Goa is big. And, it has different areas,” he said.Shrivastava said there had been a correction in North Goa properties, while claiming that South Goa had not seen the same correction.“There was a correction in NORTH Goa properties. Not in South Goa. I had already warned enough people not to buy in North.”His point was that rental yields and property trends can differ depending on the part of Goa where a property is located.Disclaimer: The views and claims mentioned in this article are based on information shared by the individual and do not necessarily reflect the views of The Times of India.Thumb image: X
