Luxury real estate showing signs of fatigue, but inventory in the hands of strong developers: Raymond Realty CEO

Harmohan Sahni, CEO of Raymond Group’s real estate arm, noted that market trends differ across products. He said the premium segment continues to remain strong

The luxury real estate segment is showing signs of fatigue. While it represents a smaller portion of the overall market with limited participation by fewer players, inventory levels remain high. However, the silver lining is that much of this inventory is held by strong hands (developers), said Harmohan Sahni, CEO of Raymond Realty.

"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,” Harmohan Sahni, Raymond Realty CEO, said. (Raymond Realty)

“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.

Raymond Group’s long-term strategy on real estate

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.