Raymond Realty Ltd, the listed real estate arm of Raymond Group, is stepping up its expansion beyond Thane, counting on the booming redevelopment opportunities in the Mumbai Metropolitan Region (MMR) to drive its next phase of growth.
The developer will launch two redevelopment projects in the financial year 2027, both in the Mahim area, with a combined gross development value (GDV) of ₹4500 crore.
Raymond Realty, which currently has four such projects under development, recently signed two more redevelopment projects in Mumbai's Parel and Kandivali locality, with ₹8500 crore and ₹3000 crore of GDV, respectively. The group owns 100 acres of legacy land in Thane.
Asset-light growth
Redevelopment remains central to Mumbai’s real estate landscape, given the city’s limited land availability. It has led to ageing residential societies being transformed into modern, well-planned living spaces in premium areas.
The real estate firm has signed and is exploring a range of redevelopment opportunities, including old housing societies, slum properties, and Maharashtra Housing and Area Development Authority (Mhada) residential societies.
“We are looking at expansion beyond Thane. Most of our new growth will come from new projects and locations. There is little virgin land availability in Mumbai and the redevelopment momentum is big. We are trying to service a certain client base, and given the Raymond brand value, we are looking at appropriate micro-markets,” managing director and CEO Harmohan Sahni told Mint.
However, if vacant land is available, they would explore those options, he added.
As part of its growth strategy outside the Thane land, the developer follows an asset-light model and develops projects through joint development agreements (JDA) with respective partners.
It develops residential projects under the brands TenX (aspirational), The Address by GS (premium) and Invictus by GS (super premium). The Parel slum redevelopment project, for instance, will have both premium and super premium offerings.
Redevelopment opportunity
In Thane, Raymond Realty has around 65 acres or 6.7 million sq ft under development, with a revenue potential of ₹16,500 crore. The entire 100-acre land parcel has a total revenue potential of ₹25,000 crore.
In the April-June quarter, the company reported sales bookings of ₹700 crore, up 129% from ₹306 crore in the year-ago period. Only 36% of the booking value came from the Thane development, while the rest came from its other projects through JDAs
“This year, we may add two or maybe more projects outside Thane,” Sahni said.
Given the massive scope of redevelopment projects in the city, despite the complexities, corporate developers have also been entering the space.
In March, Birla Estates Pvt Ltd (BEPL) announced its entry into the redevelopment market with its first project in suburban Mumbai's Khar West locality. The company is redeveloping Anmol Co-operative Housing Society and Bhartiya Bhavan Co-operative Housing Society under a joint redevelopment arrangement with Parinee Real Estate Builders.
The redevelopment opportunity in Mumbai is sizeable. Property advisory Knight Frank India last year said the society redevelopment projects in Mumbai region would add 44,277 new homes by 2030, unlocking the residential market potential of the city.
According to the report, around 910 housing societies have signed development agreements since 2020, unlocking nearly 326.8 acres of potential land area.
The report notes that an estimated 160,000 societies in the region were over the age of 30 and eligible for redevelopment.