Kolkata: The US Iran war has roiled the equity markets. While the markets were passing through a lot of volatility in 2026, the war that broke out on Feb 28. When financial markets are more volatile, investors often rethink how they allocate their assets. Pakshal Sanghvi, director of Sanghvi Realty, told News9 that residential real estate is usually less volatile and more closely tied to underlying demand fundamentals like urbanisation, income growth and housing demands than stocks which can respond strongly to changes in the global economy, interest rates or geopolitical tensions.
Long-term store of value
In India, especially in cities like Mumbai, people have always seen real estate as more than just an investment; they have also seen it as a long-term store of value, said Sanghvi. “When the market isn’t steady, this idea gets stronger. Both investors and homebuyers start to value stability and keeping their money safe which makes people more interested in real goods that may be useful and appreciate over time,” he remarked.
But there are point to keep in mind. The shift in the attitude to real estate does not happen overnight or in a speculative manner. “When it comes to real estate, decisions are more thought out and investments last longer. We usually see a slow reallocation of capital, when investors who may have too much money in the stock market start putting some of it into real estate as part of a balanced portfolio,” he added.
More end-user driven, an important feature
Sanghvi also pointed to another significant aspect. He said that the residential real estate sector is far more end-user driven than it was in previous cycles. The upshot: this difference makes things more stable because demand isn’t just based on how investors feel but on real housing needs. Because of this, the real estate market tends to stay strong even when the stock market is unstable, he infers.
Overall portfolio stability
Sanghvi feels as investors become more mindful of their finances, they are now looking at real estate along with other types of assets instead of just on its own. “The focus is shifting toward overall portfolio stability, where real estate plays a role in reducing volatility and providing long-term wealth creation. In that sense, it acts as a natural hedge—not in a short-term, reactive way, but as part of a well-considered, long-term investment strategy,” mentioned Sanghvi.
Going forward, as global uncertainties and market cycles continue to evolve, this trend of using real estate as a stabilising asset within portfolios is likely to strengthen, he said. Many investors find that real estate is a good way to balance out more unpredictable financial assets and the prices are relatively more stable. Moreover, real estate tends to appreciate over time.