Hype for Housing Redevelopment causes major Concerns, says Raymond CMD Singhania

A sharper-than-normal rise in rental rates is being driven by the growing trend of real estate redevelopment in Mumbai, according to Gautam Singhania, chairman and managing director of Raymond Ltd.

The market could be disrupted by thousands of people seeking temporary rental housing during reconstruction and developers overbidding to secure such projects. The right product at the right price is crucial for sustainable growth, even as concerns about a potential downcycle persist, Singhania said.

A new and stable state government led by Chief Minister Devendra Fadnavis bodes well for the city's infrastructure development, according to him, boosting the demand for real estate in the city.

Raymond Realty, Raymond's real estate arm, has a largely redevelopment-led growth trajectory over the next few years, and has signed on societies in areas such as Bandra, Sion, Mahim, etc. The company is also monetizing its large land parcel at Pokhran Road, Thane, where it's constructing around 4 million square feet of living space.

Raymond Realty is currently in the process of being demerged from Raymond Ltd and listed as a separate entity. The parent company received approval from the Securities and Exchange Board of India (SEBI) for the merger, and now seeks adjudication from the National Company Law Tribunal (NCLT) for the same.

Singhania said that Raymond Ltd will begin reporting its finances without its real estate operations sometime in June 2025, with Raymond Realty expected to be listed separately on the bourses in August 2025.