Mumbai's Real Estate: Still Affordable, According to Raymond Realty CEO

Six years ago, when the legacy textile brand Raymond ventured into the real estate business, many industry experts viewed it as a risky move. Today, Raymond Realty has successfully established itself as a listed company on the stock market. Harmohan Sahni, CEO & MD of Raymond Realty, describes this achievement as 'a report card of all the hard work being put in over the last six years.'

Sahni elaborated on the strategic decision to demerge the real estate vertical. The primary aim was to give the company a distinct identity and create value for investors who are particularly interested in the real estate sector. The group has a history of demergers, and it was now Raymond Realty's turn to find its own footing in the stock market.

Post-demerger, Sahni emphasized the independence of Raymond Realty’s operations from its parent company, Raymond Limited. He stated, “The board is largely constituted by independent directors who will oversee the business. Group-level guidance is, and will always be, available as needed.” However, the well-established brand name of Raymond brings its own set of advantages. Sahni noted, “It’s a big advantage for us. We do not need to build a brand from scratch, consumers already know what to expect from the company. It’s not a burden, but a big responsibility.”

Raymond Realty focuses on the mid-to-premium segment of the real estate market, steering clear of high-end luxury projects. Sahni explained, “Our strategy has to last for a longer period of time and can’t be based on what’s trending now. The mid-to-premium market is our chosen market, which comprises 45% of the overall Mumbai real estate market. The luxury market has its limitations. While huge property deals make headlines, it is the relatively lower-priced sales that make up the bulk of the market.”

Contrary to the common perception of Mumbai’s real estate being unaffordable, Sahni believes otherwise. “Everything good comes at a premium. Mumbai offers higher income opportunities compared to other metropolitan cities, and a portion of that income can be allocated to housing,” he opined. He added, “In my opinion, affordability in Mumbai is at its best compared to the last 15–20 years.”

Thane, a value-for-money alternative to Mumbai, is a fiercely competitive real estate market. Raymond Realty has several ongoing and upcoming projects in Thane, including Ten X Era, Ten X Habitat, and The Address by GS, which focus on luxury and spacious living with amenities and connectivity. Sahni described Thane as “Mumbai’s home for many years,” highlighting its size, affordability, and strong infrastructure.

Looking ahead, Raymond Realty is exploring expansion beyond the Mumbai metropolitan region. Sahni mentioned, “We have been looking at Pune for the last six months. Once our criteria like returns, quality, and strategic fit are met, we will definitely do something in Pune soon. But we are not in a great hurry.” He added, “We want to stay focused on Maharashtra. We deal with one political system, one bureaucratic system. It is a hyper-local business and there are enough opportunities here, as reflected in our numbers.”

In Q4FY25, Raymond Realty reported ₹766 crore in revenue and ₹194 crore in EBITDA, marking a 13% YoY growth. For the full year FY25, revenue surged 45% YoY to ₹2,313 crore, and EBITDA was up 37% YoY to ₹507 crore.

When asked about future trends in the real estate industry, Sahni sounded cautiously optimistic. “We believe we are at the beginning of a mid-cycle, with several years left before it culminates. The idea is to gauge tailwinds and take advantage as much as we can, so that we are fully prepared for headwinds, as and when they arrive.” He concluded with a confident smile, “The only time to repair the roof is when the sun is shining, not when it starts raining.”