Luxury Real Estate Faces Challenges, but Strong Developers Maintain Market Stability

Harmohan Sahni, the CEO of Raymond Realty, recently provided insights into the current state of the real estate market during a Q4FY25 investors call. He noted that while the luxury segment is showing signs of fatigue, the premium market where Raymond Realty operates remains robust. It's similar to a well-loved shirt that might need a wash—still stylish, but perhaps it's time for a refresh. The luxury real estate scene, while less crowded and with high inventory levels, has inventory primarily in the hands of reliable developers, according to Sahni.

My personal view is that on the luxury side, there’s some kind of tiredness, Sahni explained. He reiterated that the current luxury market is smaller, with fewer active players. Despite this lull, the good news is that the inventory is in capable hands, which matters a lot during such slowdowns. When Sahni discussed various market segments, he highlighted the steady demand for premium real estate. We are playing in deep markets, so volumes are very, very strong, he said, showing confidence in their ongoing projects.

Thane, a rapidly developing area near Mumbai, continues to thrive despite fierce competition. Sahni noted, As the market has expanded, so has our share, which is quite heartening for potential homeowners looking for stable investment choices. Raymond Realty has been actively introducing new projects, including significant developments in areas like Mahim and Wadala. Their push into the Pune market is also on the cards, looking to tap into the growing demand. The residential segment is a massive opportunity—after all, in a country like India, everyone aspires to own a home, he remarked.

It's a well-known fact but worth remembering, especially with the right products targeting the right buyers. With about six or seven major markets contributing to 70-80% of the national market value, establishing a strong position in these areas is crucial. The Mumbai Metropolitan Region (MMR) stands out as a significant player, and getting a foothold there is part of the plan. Interestingly, Sahni clarified that Raymond isn’t looking at the luxury or very affordable segments; instead, they are focusing on what he described as affordable luxury. It's like looking for a good quality mid-range phone rather than a flagship model—offering better value without going into the super-luxury territory.

Since entering the real estate game in 2019 with their first project in Thane, Raymond Realty has progressively built its brand, launching projects like 'The Address by GS' in Bandra and solidifying its presence over the past few years.