An Indian founder and investor has revealed that a Goa villa he purchased for ₹2 crore in 2023 now brings in ₹1 lakh per month as revenue through Airbnb. Akshat Shrivastava, founder of Wisdom Hatch, explained the economics of running a rental in Goa in an X post yesterday. He was responding to a post criticizing Parul Gulati, another entrepreneur who owns a homestay business in Goa.
On running an Airbnb in Goa
Akshat Shrivastava revealed that he bought a 3BHK villa in South Goa roughly three years ago. At that time, the property cost ₹2 crore. Today, its value has risen to ₹2.7-2.8 crore.
The entrepreneur explained that he has entrusted the day-to-day management of the property to an Airbnb management company. As a homestay, his villa commands a rent of ₹6,000 per night.
“This is quite reasonable,” Shrivastava said, highlighting that the cost per room is just ₹2,000.
Breaking down the cost and revenue
{{/usCountry}}“This is quite reasonable,” Shrivastava said, highlighting that the cost per room is just ₹2,000.
Breaking down the cost and revenue
{{/usCountry}}The villa is rented for ₹6,000 a night. Shrivastava says the Airbnb management company estimates an average occupancy of 65%, which means the villa is occupied for roughly 65% of the year. Over 365 days, that works out to about 237 days of bookings.
At ₹6,000 per night, 237 booked nights would generate around ₹14.2 lakh in annual rental revenue. That translates to roughly ₹1.18 lakh per month in gross revenue.
Shrivastava, however, says the management company pays him close to ₹1 lakh a month. This means that he earns close to ₹12 lakh per annum through the Goa Airbnb.
His ₹1 lakh monthly income also works out to about a 6% annual yield on his original ₹2 crore investment.
‘Goa is big’
The entrepreneur also addressed concerns about a possible correction in property prices, saying he has no plans to sell the villa even if its value falls. Shrivastava said he did not buy the property from a builder and is not looking to make a quick profit by selling it. “I have no interest in selling it,” he said.
He also explained why he decided to share the details of his Goa villa and its rental income because people were predicting that he would sell his property. By sharing the rental returns, he wanted to clarify that different Airbnbs in different parts of Goa can bring different rental yields.
“Goa is big. And, it has different areas,” he said. “There was a correction in NORTH Goa properties. Not in South Goa. I had already warned enough people not to buy in North.”