Raymond Realty Ltd has entered into a joint development agreement with a landowner to develop a luxury housing project in Mumbai's prime Parel location. According to a regulatory filing on Wednesday, the company has signed this strategic partnership to develop a residential project in one of Mumbai's most sought-after locations. The project represents a significant expansion for the real estate developer, marking Raymond Realty's first project in South Mumbai and its largest development outside its Thane land parcel. The company has not disclosed the identity of its partner landowner.
The luxury housing project in Parel, Mumbai, carries an estimated gross development value (GDV) of ₹8,500 crore, as reported by CNBC TV18, Business Standard, and The Economic Times. This substantial revenue projection underscores the scale and value of the development partnership. The deal announced on Wednesday (July 15) takes the company's total real estate portfolio GDV to around ₹52,000 crore. The project is a slum redevelopment project spread across 11 acres and is expected to be launched within 12-18 months, subject to approvals. The development will be completed in two phases, with the first phase targeted for delivery in about five years, while the overall development is expected to be completed over eight years. The project will feature apartments ranging from 1,300 sq ft to 2,000 sq ft, with current residential prices in the micro-market at around ₹50,000 per sq ft, forming the basis for the project's valuation.
Under the revenue-sharing arrangement, the development partner will receive around 40 per cent of the project revenue, while Raymond Realty expects to invest around ₹700 crore at the project's peak. The landowner will bear rehabilitation and approval-related costs. The project represents the company's largest project outside its flagship 100-acre Thane land parcel, which has a GDV of ₹25,000 crore. Raymond Realty plans to develop apartments ranging from 1,300 sq ft to 2,000 sq ft, with the company expecting the project to deliver an earnings before interest, taxes, depreciation and amortisation (Ebitda) margin of 20-21 per cent. At the company level, Raymond Realty has guided for a blended Ebitda margin of 17-19 per cent for the current financial year and expects to maintain a similar margin profile over the next two to three years.
This development marks Raymond Realty's 8th joint development project in Mumbai city, demonstrating the company's continued focus on strategic partnerships in the metropolis. According to CNBC TV18, Business Standard, and The Economic Times, the project forms part of the company's expansion through an asset-light development model. Gautam Hari Singhania, Chairman of Raymond Group, emphasized that the company's expansion continues to be guided by an asset-light, partnership-led approach that enables value unlocking in Mumbai's most sought-after locations. The Chairman noted that the project reflects the group's confidence in Mumbai's long-term growth and is expected to strengthen the company's presence in the city's residential market. Harmohan Sahni, Managing Director and Chief Executive Officer of Raymond Realty, stated that the company's "disciplined, asset-light model and agile capital structure enable us to unlock high-value opportunities while maintaining capital efficiency. Raymond Realty would continue to focus on scalable growth and execution."
On the company's expansion into South Mumbai, Sahni noted that the eastern side of South Mumbai is developing much faster due to infrastructure coming up. He emphasized that at around ₹50,000 per sq ft, it is significantly more affordable than parts of western South Mumbai, where prices can be around ₹1.5 lakh per sq ft. The company expects to continue evaluating opportunities in "deep micro-markets" with strong end-user demand, provided they don't cannibalize existing portfolio and are in deep markets. Sahni added that sales momentum across the company's recently launched projects remains strong, with Raymond Realty's pre-sales reaching ₹700 crore in Q1 FY26, up 129 per cent year-on-year. Collections rose 47 per cent Y-o-Y to ₹550 crore. The company remains open to outright land acquisitions if they offer superior returns, though it continues to pursue its asset-light, joint development-led growth strategy.
