Real Estate Cycle: 3-4 Years Left, Says Raymond Realty CEO
Raymond Realty CEO Harmohan Sahni predicts the current real estate cycle, which began during the pandemic, has another 3-4 years of strong sales, particularly in the 'affordable luxury' segment.
Real EstateRaymond RealtyAffordable LuxuryLuxury MarketMarket TrendsReal Estate NewsJun 25, 2025
In an interview, Raymond Realty's CEO Harmohan Sahni said that most of the company's inventory is expected to be under the Rs 10-12 crore ticket size. While acknowledging 'tiredness' in Mumbai's luxury and ultra-luxury market, Sahni believes the current real estate cycle, which began in the wake of the Covid-19 pandemic, still has a significant period of sales ahead.
'Most of our inventory currently is under Rs 10 crore. Our range is between Rs 3 crore and Rs 8 crore... And even going forward, I don't think we are doing any significant buildup in the above-Rs 10-12 crore segment,' Sahni explained. 'As far as luxury is concerned, I have actually gone on record already saying that I'm seeing some tiredness in that market. It's a shallow market in some sense... Overall, I don't see any stress or even difficulty building up. Forget the stress. My hypothesis is that we are somewhere in mid-cycle. We have a good three, four years left in this cycle.'
The Raymond Group's real estate arm reported a topline of around Rs 2,300 crore in FY25, a growth of more than 40 percent year-on-year, while its profit before tax for the year was around Rs 372 crore. Going ahead, Raymond Realty's management has projected annual growth of around 20 percent in pre-sales bookings and a similar increase in topline over the next few years.
The real estate segment was demerged from Raymond Ltd starting May, as part of the group's strategy towards pure-play companies in order to unlock more shareholder value. Raymond Ltd has already demerged its apparel business under Raymond Lifestyle Ltd.
Raymond Realty markets its inventory under three distinct brands in order of ticket sizes — TenX, Address By GS, and Invictus, with the latter being the most expensive. Sahni noted that much of the company's inventory is in the Address By GS segment, also its highest selling brand, which has projects across Bandra, Thane, and elsewhere.
In Thane, now a fiercely competitive market, with multiple large and listed developers across all ticket sizes, Raymond Realty has been focused on monetising its large, legacy 100-acre land parcel at JK Gram on Pokhran Road, where current per-square-foot rates are trending between Rs 20,000 and Rs 23,000, according to Sahni. Of the 11.5 million square feet of development potential available to monetise, the company has brought to the market around 4.5 million square feet, with Sahni expecting the rest of the inventory, worth around Rs 16,000 crore, to be released over the next seven years.
Other than Thane, many of the company's projects have been through the redevelopment route, as it has signed six projects with a combined development potential of nearly Rs 15,000 crore.
Raymond Realty's micro-market play has been focused on the city's major employment centre, Bandra Kurla Complex (BKC), with the company interested in all micro markets where prices trend above Rs 25,000 per square foot, while not entering the luxury segments. 'The magnet for employment in Mumbai now is BKC. We have covered all directions around BKC. We have not covered the north of BKC, that is, Chembur. But otherwise, we have got one in Sion, one in Wadala, which is east of BKC; we've got two in Bandra East, which is west of BKC; and we have got two in Mahim, which is south of BKC. The idea is to address all kinds of ticket sizes,' Sahni said.
He added, 'The pipeline looks pretty good, because there is a renewal which the city needs and we have to look at redevelopment. Markets are already developed... We have only moved up the value chain wherever we have expanded, but we are not getting into luxury or uber-luxury. We clearly want to stay in the mid-market to premium segment.'
Frequently Asked Questions
What is Raymond Realty's focus in the real estate market?
Raymond Realty focuses on the 'affordable luxury' segment, with homes priced under Rs 10 crore. They are not planning to build significant inventory in the above-Rs 10 crore segment.
What is the current state of the luxury and ultra-luxury market in Mumbai?
According to Raymond Realty CEO Harmohan Sahni, there is some 'tiredness' in the luxury and ultra-luxury market, which is a shallow market in some sense.
What is Raymond Realty's projected growth for the next few years?
Raymond Realty projects annual growth of around 20 percent in pre-sales bookings and a similar increase in topline over the next few years.
What is the development potential of Raymond Realty's land parcel in Thane?
Raymond Realty has a 100-acre land parcel in Thane with a development potential of 11.5 million square feet. They have already brought 4.5 million square feet to the market and expect to release the rest, worth around Rs 16,000 crore, over the next seven years.
What is Raymond Realty's strategy for the Bandra Kurla Complex (BKC) area?
Raymond Realty is focused on the BKC area and other micro markets where prices trend above Rs 25,000 per square foot. They have projects in Sion, Wadala, Bandra East, and Mahim, addressing all kinds of ticket sizes.
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