Raymond Realty is making strategic moves to enter Pune, Maharashtra’s second-largest real estate market, with a focus on well-established locations priced between ₹15,000 to ₹25,000 per square foot. With a strong emphasis on execution, timely delivery, and an asset-light joint development model, the company is poised to maintain its competitive edge while expanding its footprint across new markets, shares Harmohan H Sahni, Chief Executive Officer, Raymond Realty in an exclusive interview with Abhineet Kumar of Elets News Network (ENN).
Raymond Realty is planning to enter the Pune real estate market with a significant topline target of ₹2,000 crore. What factors are you considering when scouting for the ideal land parcel, and how does Pune fit into your broader strategic vision?
We are focused on well-established locations in Pune, targeting a price range of 15,000 to 25,000 per square foot. Pune holds strategic importance as it is the second-largest market in Maharashtra, which is a key focus area for us. The city’s robust infrastructure, economic growth, and rising demand for quality residential spaces align with our long-term vision of expanding our footprint in thriving urban centres.
Raymond Realty has built a reputation for timely project delivery and high customer satisfaction. How do you plan to maintain and strengthen these competitive advantages as you expand into new markets like Pune?
At Raymond Realty, we believe that execution and timely delivery are ingrained in our organisational mindset rather than mere skills. Our strong cultural values ensure that these principles transcend geographical boundaries. By working with the same trusted service providers and contractors, we ensure that our standards are consistently met, if not exceeded, even in new markets like Pune. This approach allows us to replicate our success in delivering high-quality projects on time, maintaining the trust and satisfaction of our customers.
With the residential real estate market experiencing annual price hikes of 8-9%, how do you balance maintaining competitive pricing while ensuring that your projects remain attractive to buyers?
The current affordability in India’s real estate market is the best it has been in the last two decades, even with annual price hikes of 7% to 8%. This is a healthy trend when considering the nominal GDP growth of 12% to 14%. We believe that as long as the broader economic environment continues to support income growth, the affordability of our projects will remain strong. Our focus is on delivering value through quality and timely delivery, ensuring that our projects remain attractive to buyers while keeping pricing competitive.
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Given Raymond Realty’s focus on superior execution and quality, what challenges do you anticipate in replicating your success in Thane and Mumbai in a new market?
As mentioned earlier, execution and timely delivery are more about mindset than skills. Raymond Realty’s strong cultural foundation ensures that these principles are upheld regardless of the market we enter. By collaborating with the same trusted service providers and contractors, we are confident that we can replicate our success in Pune, just as we have done in Thane and Mumbai. The challenge lies not in execution but in maintaining the consistency of our standards, which we are fully prepared to do.
Raymond Group has announced the adoption of an asset-light joint development model for future projects. Could you share how this model will influence your approach to upcoming projects?
Adopting an asset-light joint development model is a strategic decision that aligns with our goal of maximising Return on Capital Employed (ROCE) and enhancing shareholder value. This approach allows us to leverage the strengths of our partners while minimising capital expenditure, thereby improving overall project profitability. We believe this model will enable us to expand more aggressively and efficiently into new markets, ensuring sustained growth and value creation for our stakeholders.