The luxury real estate segment in India is beginning to show signs of fatigue, according to Harmohan Sahni, CEO of Raymond Realty. While this high-end sector represents a smaller portion of the overall real estate market and involves fewer developers, current inventory levels remain elevated. However, Sahni pointed out a positive aspect: most of the unsold inventory is held by financially strong developers, which stabilizes the market.

“Personally, I feel there’s some tiredness in the luxury segment. It’s not a large or deeply penetrated market, and while inventory is high, it’s controlled by strong hands,” Sahni said during Raymond Realty’s Q4FY25 investor call.

Contrasting the slowdown in luxury real estate, Sahni emphasized the continued strength of the premium housing segment—the category Raymond Realty is focused on. He noted that in well-established and competitive markets like Thane, the company has not only maintained its position but also expanded its market share. “We’re operating in deep, user-driven markets where volumes remain very strong,” he added.

Sahni explained that pricing in these markets has remained stable, even as new players with large-scale developments have entered the field. He also reaffirmed the company’s long-term vision: “Our goal is to become a significant player in the Indian real estate sector.”

According to Sahni, India’s residential real estate market holds massive potential, driven by the strong aspiration among people to own homes. He noted that six or seven major regions account for 70–80% of the country’s total real estate value, with the Mumbai Metropolitan Region (MMR) being a key focus area.

Raymond Realty is positioning itself in the premium-but-affordable segment, often referred to as “affordable luxury.” The company deliberately avoids the affordable housing and ultra-luxury segments, focusing instead on mass premium housing that aligns with Raymond’s brand identity. “The Raymond brand supports this premium positioning, and our team has a strong track record in executing such projects over the last five years,” Sahni said.

Raymond made its real estate debut in 2019 with a project in Thane and has since expanded with high-profile developments such as ‘The Address by GS’ in Bandra (launched in 2024). Upcoming projects in Mahim and Wadala are set to further solidify its presence in Mumbai. The company is also exploring expansion into the Pune market, where it is planning a new residential project with an estimated topline of ₹2,000 crore and is currently in the process of finalizing a suitable land parcel.

Knowledge Source : https://www.hindustantimes.com/real-estate/luxury-real-estate-showing-signs-of-fatigue-but-inventory-in-the-hands-of-strong-developers-raymond-realty-ceo-101748224101202.html