Luxury Real Estate Faces Fatigue, But Strong Developers Hold Key Inventory
The luxury real estate market is showing signs of fatigue, with high inventory levels. However, much of this inventory is held by strong developers, ensuring market stability. Harmohan Sahni, CEO of Raymond Realty, discusses current trends and the company's long-term strategy.
Luxury Real EstateMarket TrendsRaymond RealtyPremium SegmentReal Estate DevelopmentReal Estate NewsMay 26, 2025
“My personal view is that on the luxury (real estate market) side, there is some kind of tiredness. It is not in the deep end of the market and has fewer players. The inventory is quite high in the market today, but the good news is that it's in strong hands,” Sahni said during the Q4FY25 investors call.
Discussing current trends in the real estate sector during the call, Sahni noted that market dynamics vary across different product segments. He said that the premium segment, where Raymond Realty operates, continues to remain strong. “We are playing in deep markets, so volumes are very, very strong,” he said.
The market in Thane continues to grow, even in the face of intense competition, Sahni said. “As the market has expanded, so has our share,” he said. While new players have entered with large-scale projects, the company has maintained its growth. It’s a deep, user-driven market, and importantly, prices have remained stable, he said.
Speaking about the long-term strategy for Raymond Group’s real estate arm, Sahni said, “We want to be one of the significant players in the country.” The residential segment is a massive opportunity—after all, in a country like India, everyone aspires to own a home. That fundamental demand is no secret, he said.
There are about six or seven major markets in the country that account for 70% to 80% of the total market value. Mumbai, and specifically the Mumbai Metropolitan Region (MMR), is one of the largest among them. The company’s strategy is to first establish a strong foothold in this key market, he said.
“We are not looking at the bottom of the pyramid. We are not in the affordable segment. We are not in the luxury segment; the ticket size and price points are going to be for the masses, so it is affordable luxury. It is the premium segment that we are targeting, and the Raymond Brand itself lends to that. And that is a strength that we have. And within the team also, the execution capability is very high on that segment, and we have demonstrated that in the last five years,” he said.
Textile major Raymond entered the real estate sector through its subsidiary, Raymond Realty, with the launch of its debut project in Thane near Mumbai in 2019. This was followed by the launch of 'The Address by GS' in Bandra, Mumbai, in 2024. The company has since announced upcoming projects in Mahim and Wadala, further strengthening its presence in Mumbai. It also plans to expand into the Pune market.
In an interview with HT.com in August 2024, Sahni had said that Raymond Realty is planning a residential project in Pune with an expected topline of around ₹2,000 crore and is currently in the process of identifying a suitable land parcel.
Frequently Asked Questions
What is the current state of the luxury real estate market?
The luxury real estate market is showing signs of fatigue with high inventory levels. However, much of this inventory is held by strong developers, ensuring market stability.
What is Raymond Realty's target market?
Raymond Realty targets the premium segment, offering affordable luxury to the masses. They are not focused on the affordable or luxury segments.
What is Raymond Realty's long-term strategy?
Raymond Realty aims to become a significant player in the real estate market, focusing on major cities like Mumbai and Pune. They plan to establish a strong foothold in these key markets.
How has Raymond Realty maintained growth in the face of competition?
Raymond Realty has maintained growth by focusing on deep, user-driven markets and keeping prices stable. They have also expanded their presence in key areas like Thane and Mumbai.
What new projects is Raymond Realty planning?
Raymond Realty has announced upcoming projects in Mahim and Wadala in Mumbai. They also plan to expand into the Pune market with a residential project expected to generate ₹2,000 crore.
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