Real estate market remains strong with steady project demand across segments: Rustomjee MD

2025-02-15 02:59:28

Rustomjee MD Boman Irani Dismisses Real Estate Slowdown Concerns, Sees Strong Market Performance

Boman Irani, Managing Director of Rustomjee and President of CREDAI, refuted claims of a slowdown in real estate sales, stating that market data and feedback do not support such warnings. In an interaction with Moneycontrol, he asserted that if any slowdown does occur, Rustomjee would adopt an "overdrive" strategy to strengthen its market position.

He acknowledged that non-capitalized developers might face challenges if sales slow down, as some buyers could postpone purchase decisions. However, he emphasized that inventory levels in key markets like the Mumbai Metropolitan Region (MMR) remain stable.

"We see the current situation as an opportunity. Developers are actively engaging with customers through schemes and pricing strategies. Reports suggesting a slowdown often generalize data without considering micro-market variations. Before launching projects, we conduct detailed market surveys, as we have for our upcoming launch in Dombivli," Irani explained.

He noted that Mumbai’s current inventory overhang stands at approximately 19 months, well below the industry’s healthy threshold of 24 months. He also pointed out that narratives of a market slowdown tend to benefit speculators who capitalize on lower property prices.

Despite concerns, Rustomjee’s projects across various price segments have performed well. The company’s premium Thane project, with apartments priced at ₹3.50 crore, and a luxury development in Bandra (West), with units exceeding ₹15 crore, have seen strong demand, with around 80% of inventory already sold. In Mumbai, Rustomjee has identified its ideal ticket size at ₹5.5 crore.

Known for its dominance in Mumbai’s redevelopment sector, Rustomjee continues to expand both in the island city and the suburbs. The company is set to launch a redevelopment project in Bandra (East) and is also working on a greenfield project in Dombivli. The focus for the quarter remains on completing ongoing projects to enhance revenue recognition.

For the quarter ending December 31, 2024, Rustomjee launched two redevelopment projects in Goregaon and Malad, collectively valued at ₹1,000 crore. At its plotted development in Kasara, on Mumbai’s outskirts, the company has sold 21% of launched inventory.

With multiple developers, including Raymond Realty, Macrotech (Lodha), Puravankara, Prestige Estates, and Mahindra Lifespace, venturing into Mumbai’s redevelopment space, Irani remained confident in Rustomjee’s expertise. "More developers in the market drive price appreciation. Our streamlined redevelopment process, from proposal to agreement and launch, gives us a competitive edge," he said.

Unlike other major Mumbai-based developers, Rustomjee plans to focus primarily on Mumbai while selectively entering Pune’s "aspirational" housing market, targeting homes priced between ₹2-4 crore.