Is Mumbai’s real estate still affordable? Raymond Realty’s CEO thinks so

Six years ago, when legacy textile brand Raymond placed a big bet on the real estate business, many called it a gamble. Today, that same company has found its place on the bourses.

Harmohan Sahni, CEO & MD of Raymond Realty, in an exclusive interview with Upstox, calls it “a report card of all the hard work being put in over the last six years.”

Sahni also explained the aim behind the demerger of the real estate vertical. He says the idea was to give the company a distinct identity and create value for investors who are particularly interested in the real estate business. The group has opted for demergers in the past as well, and now it was the turn of steadily growing Raymond Realty to find its own footing in the stock market.

While commenting on the operational relationship between Raymond Limited and Raymond Realty after the demerger, Sahni stressed complete independence. “The board is largely constituted by independent directors who will oversee the business. Group-level guidance is, and will always be, there as needed,” he explained.

However, it's undeniable that a heavyweight brand name like Raymond comes with its own set of benefits. Sahni says, “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.”

At a time when sales of luxury housing units with prices running into multiple crores have gained attention, Raymond Realty continues to focus on the mid-to-premium segment. While explaining the company's product strategy to steer away from high-end luxury projects, Sahni says, “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. Huge property deals sure make it to the headlines, but it is the relatively lower-priced sales that make up the bulk of the market.”

While the sky-high prices of real estate in Mumbai often make potential buyers sweat, Raymond Realty CEO doesn’t think Mumbai’s real estate market is ‘unaffordable.’ “Everything good comes at a premium. Mumbai gives an opportunity to earn higher income than other metropolitan cities and one has to allocate a certain amount of that income to house purchase,” he opines.

He goes on to add, “In my opinion, affordability in Mumbai is at its best compared to the last 15–20 years.”

Sahni believes Thane, Mumbai’s value-for-money alternative, is and has been a fiercely competitive real estate market for a fairly long time. Currently, Raymond Realty has several ongoing and upcoming projects in Thane, which include Ten X Era, Ten X Habitat and The Address by GS with a focus on luxury and spacious living, coupled with amenities and connectivity.

Calling it Raymond’s home for many years, Sahni says, “For me, Thane is Mumbai. It is big in size, affordable and boasts of strong infrastructure and connectivity from Mumbai. It is one of the best places to live in.”

Going forward, Raymond Realty is looking to expand beyond the Mumbai metropolitan region. Sahni states, “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.”

“We want to stay focused on Maharashtra,” Sahni adds. “We deal with one political system, one bureaucratic system. It is a hyper-local business and there are enough opportunities here which is reflected in our numbers.”

In Q4FY25, Raymond Realty reported ₹766 crore in revenue and ₹194 crore in EBITDA, 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 sounds cautiously optimistic: “We believe we are somewhere at the beginning of a mid-cycle, with quite a few 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.”

“The only time to repair the roof is when the sun is shining, not when it starts raining,” adds Sahni with a confident smile.