Gautam Singhania-owned Raymond Realty is currently working on residential projects with gross revenue potential of ₹30,000 crore, bulk of which is coming up on 40 per cent of the 120 acres that it owns in Thane, which is part of the Mumbai Metropolitan Region.

After the restructuring that Raymond Ltd went through, it is primarily a real estate company now with Thane, where it owns plenty of land as its focus area. However, it is spreading into the heart of Mumbai city as well.

In February, it launched its first project in Mumbai in Bandra — a joint development project of 2.74-acre land with an estimated development value of ₹2,000 crore. The first phase of the project is almost fully sold out, Harmohan Sahni, Chief Executive Officer of Raymond Realty, told businessline. He added that more buildings would come up there. The project carpet area is around 7 lakh sq ft.

Other projects

There are two more projects in the pipeline that have been signed and will be launched in the next few months – one in Mahim and another in Sion, both close to the heart of the city. Sahni said that both are reasonably large projects with about 5 lakh sq ft of saleable area each. The combined revenue potential of the three projects would be about ₹6,000 crore.

Its ongoing projects in Thane with a revenue potential of around ₹25,000 crore will be developed over a five-year period, “because it is very large and the market can absorb only that much of stock,” Sahni said.

Late entry

A late entrant into the real estate market – Raymond launched its first project in 2019 – it has quickly captured a significant chunk of the Thane market, having already developed 5,000 homes. It has about a third of the market share in Thane, which has become a target for real estate developers with the coastal road and imminent metro connectivity.

Targeted at the affordable premium segment, Sahni said that their houses are able to command a 10-15 per cent premium. He attributes it to the quality of the products as well as the quick turnaround time. “The first 1,000 apartments we delivered two years ahead of what we promised.”  He added that all ‘aggressive promises’ that had been made by the company were made good including all the amenities.

The company expects to end the year just ended with bookings of over ₹2,000 crore, compared with ₹1,500 crore year ago.

Home prices are a function of demand and Sahni said that there has been 8-9 per cent price hikes annually over the last three years. Despite the price hikes he said that sales had not slowed down for the company. “My sales have only accelerated as compared to last year.”

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