Developers in Goa are delaying new residential projects, particularly in Panaji, despite having land banks and continued demand for housing. Slower sales, rising unsold inventory, higher construction costs and uncertainty over project approvals have encouraged builders to adopt a wait-and-watch approach.

The cautious stance marks a change from the strong growth recorded in Goa’s real estate sector after the Covid-19 pandemic. Industry representatives said construction expenses had increased significantly, while property prices had not risen at the same pace. This has made homes less affordable for local buyers and encouraged some developers to focus more on the second-home market.

Avez Mohidin, chief executive officer of Mohidin Properties & Holdings and secretary of the Confederation of Real Estate Developers’ Associations of India Goa, said input costs had risen by 30 per cent because the construction sector depends on more than 250 ancillary industries. The increase has affected project feasibility and made developers more cautious about committing to fresh supply.

Regulatory uncertainty has added to the hesitation. Developers said approvals can take between eight months and two years, depending on project size, while policies may change frequently. In Panaji, uncertainty has been heightened by litigation involving the frozen Outline Development Plan. Some developers are waiting for zoning and height-related rules to be finalised after the Assembly elections before launching projects or expanding marketing efforts.

Developers are also wary of adding inventory while existing homes remain unsold. However, some industry representatives view the slowdown as a sign of market maturity, with buyers becoming more selective and quality projects potentially commanding a premium. Others remain optimistic that demand for well-located developments will endure, particularly if stock-market volatility encourages investment in property. Clear land titles are expected to support launches, although pending litigation under Section 39A remains a key risk for the sector.