Category Archives: Local Market for Serviced Apartments

Seasonal Rentals for Serviced Apartments

The tourist season commences in September that marks the beginning of the tourism calendar in Goa and continues until February, with Goa’s Carnival being the last event that un-officially makes the end of the tourism calender.

serviced rental market

Rentals for vacation homes see an occupancy rate of 30%-40% in the month of September where you can see services apartments listed at lower price point of 60% of what is priced in the peak months of December. As the first charters begin to arrive towards the end of September-early October, there begins a shift in occupancy rates across the board and the season begins to shift gear.

The fall in the rupee also has a indirect effect on tourism, which also saw the economic slowdown have an effect on tourism in 2013. Early signs of tariffs saw prices increase of 20%  as compared to last year,  and this price rise gets higher for the month of December. Last year Goa had a huge number of domestic tourist due to the valuation of the rupee which kept travelers to India as trips abroad got dearer.

We also saw the Government role out the Visa on Arrival Policy that made it convenient for many to choose to travel to India and a huge chuck to Goa coming from the United States and United Kingdom. Vacationers could stay for longer periods and hence this meant increase in volumes for the serviced apartments, villas and hotels.

The off-season is a virtually a ‘dead season’ in Goa with very little or no tourist travelling during this period. Often businesses both related to travel and hospitality see a slowdown during this period. The extent of slowdown also as some effect on the pricing rolled out in the up-coming season. As most rent leases are signed for the year businesses always look to square-off their net returns, balancing the off-season as well as the season to book net profits. Most business decide to shut shop temporarily during this period and resume once the season kicks in.

Overall, the price and occupancy rates are determined on the arrival of the charters booked, giving an industry a sense of what the occupancy rates would be like for the year. This is the main factor that would drive prices to match, the demand and supply of the market.