Luxury Real Estate Weakens, Yet Developers Remain Strong: Raymond Realty CEO

Key Highlights

• Luxury Real Estate Slows Down, but High Inventory in Strong Hands, says Raymond Realty CEO
• Raymond Realty Targets Premium Segment as Luxury Market Faces Fatigue
• Raymond Realty's Long-Term Strategy Focuses on Affordable Luxury in Major Cities

According to CEO Harmohan Sahni, the direction of the market is different for each category of real estate products.  Van Niekerk reported that the premium sector of the industry is still performing well. Luxury properties are slowing down in popularity.

This market takes up only a small part of the overall industry, but the amount of inventory is still high. The good thing is that most of this unsold stock is owned by developers, explained 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,” Sahni said during the Q4FY25 investors call.

"We are playing in deep markets, so volumes are very, very strong”, he added.

Sahni observed on the call that due to different product segments, changes in the real estate market happen differently from one area to another. He pointed out that the premium segment, home to Raymond Realty, is still doing well.

Speaking about the long-term strategy of the company, Sahni said, “We want to be one of the significant players in the country.”

"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.

Also Read: Top Luxury Housing Projects - Secure Your Home Now in Mumbai's Premium Addresses

Most of the total market value in the country comes from six or seven major cities. Among the top five, Mumbai and its metro area are the largest. The plan is for the company to get a solid position in this region first, he said.

About two years ago, Raymond Realty, a part of Raymond, helped the brand enter the realty sector by introducing its first project near Thane in Mumbai. After that, The Address by GS was introduced in Bandra, Mumbai, in 2024.