Raymond Realty Adopts Cautious Strategy for South Mumbai Market, Focuses on Suburbs
Raymond Realty 'cautious' on South Mumbai real estate, to enter only if ‘returns make sense’: Harmohan Sahni, MD and CEO
Image: Hindustan Times
Raymond Realty is taking a cautious stance on entering the South Mumbai real estate market, prioritizing deal structures and returns. CEO Harmohan Sahni emphasized a focus on Mumbai's western and eastern suburbs, particularly the Bandra Kurla Complex, while also addressing potential construction cost increases due to the US-Iran conflict.
- 01Raymond Realty will only enter the South Mumbai market if deal structures and expected returns align with their benchmarks.
- 02The company reported a significant increase in Q4 FY26 sales bookings, reaching ₹1,519 crore, up from ₹636 crore the previous year.
- 03Sahni anticipates a 3-4% rise in construction costs if the US-Iran conflict persists, but believes the market can absorb these costs.
- 04Raymond Realty's pre-sales for FY26 increased by 31%, totaling ₹3,023 crore.
- 05The company has a projected launch pipeline with a revenue potential of approximately ₹43,000 crore across the Mumbai Metropolitan Region.
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Raymond Realty is adopting a cautious approach towards the South Mumbai real estate market, with CEO Harmohan Sahni stating that the company will only enter if the deal structures and expected returns are favorable. The focus remains on the western and eastern suburbs, particularly the Bandra Kurla Complex (BKC), which is viewed as a strong employment hub. During a recent earnings call, Sahni noted that the ongoing US-Iran conflict could lead to a 3-4% increase in construction costs, but he believes the market can absorb these changes without affecting EBITDA margins. In Q4 FY26, Raymond Realty reported a substantial increase in sales bookings, reaching ₹1,519 crore, and a 31% rise in pre-sales for the fiscal year, totaling ₹3,023 crore. The company has a robust launch pipeline with an estimated revenue potential of ₹43,000 crore in the Mumbai Metropolitan Region, reinforcing its commitment to affordable luxury housing despite market uncertainties.
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Raymond Realty's cautious approach may influence housing availability and pricing in the South Mumbai market, affecting potential buyers and investors.
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