Real Estate forecast expert Dr. Mohit Ramsinghani - Determines demand for Real Estate will continue driving performance in 2023-24

The real estate market has performed well in the last financial year, according to Dr Mohit Ramsinghani, the Chief of Sales at Runwal. He shared his views in an exclusive discussion, sharing the better option for home buyers in the current scenario, the possibility of a recession and high-interest rates impacting the market, offerings for female home buyers, the impact of rising home loan rates, the leverage of the real estate sector, and the contribution of increasing infrastructure to the growth of real estate.

When asked about the better option for home buyers in the current scenario, Dr Ramsinghani stated that purchasing under-construction flats is a good low-cost option but comes with risks that require proper due diligence and preference for a reputable brand with a good delivery record. Ready-to-move-in flats, on the other hand, are a low-risk option as buyers get to see what they are getting through the deal. The choice between the two depends on individual requirements, with the under-construction property offering a lower price point and the advantage of price appreciation, while RTMI flats can be more expensive compared to their under-construction peers.

Regarding the market outlook, Dr Ramsinghani expressed optimism that the demand for housing will continue to flourish in 2023. He attributed this trend to the entrance of fresh market players, sustained demand for mid-to-luxury housing segments, and a growing desire for home ownership. The highest demand will be for houses that come with amenities and gated communities, particularly those developed by trusted and established real estate developers. While high-interest rates and rumors of a recession have impacted the demand, the real estate sector has already factored them into their planning and forecasts.

When asked about offerings for female home buyers, Dr Ramsinghani acknowledged the steady increase in the percentage of women buyers, who are now financially independent with good income and are thus contributing to decision-making. The market is cognizant of this fact, and real estate developers take extra care to understand their needs and customize their offerings accordingly. Women buyers can also avail of low home rate interests and stamp duty concessions.

Regarding the impact of rising home loan rates on demand and buying trends, Dr Ramsinghani pointed out that affordable and low-cost housing segments are expected to be impacted the most since it is difficult for the low-income segment to bear the increasing borrowing costs and high EMIs. However, the underlying demand for affordable housing is strong, which might impact developers, banks, and housing finance companies who will have to lower their margins to maintain demand.

When asked if the real estate sector is still heavily leveraged, Dr Ramsinghani noted that leverage is a double-edged sword that can help grow the sector if used properly but can also bring it down if overused. He stated that over the past decade, developers have learned their lesson and know at what levels borrowing is sustainable. Hence, he does not consider the real estate sector to be highly leveraged.

Regarding the contribution of increasing infrastructure like roads and highways to the growth of real estate, Dr Ramsinghani acknowledged that it is a significant factor. He stated that there had been a steady development of public and road infrastructure in the previous financial year, which is expected to continue in the coming financial year. This is good for the sector, with the network of smooth, sleek highways coming up, stretching across the country and linking multiple bustling cities and towns in a web of connectivity. This new road infrastructure promises to revolutionize the way people live and work, bringing them closer together in ways that were never before imagined. As the highways open up, so too will new opportunities for investment and economic growth, creating a boom in real estate, with prices soaring to new heights. Those with the foresight to invest in these prime properties will reap the rewards of their bets.