Oberoi, Raymond lead big push in Thane's real estate market

Thane real estate update: According to real-estate experts, Thane, historically and even in the current context, has always seen several branded developers who have constructed or are constructing in that micro-market

Competition is heating up between two leading players for a piece of the real estate market in Thane. The Thane market, real estate analysts say, is fast emerging as the destination of choice for larger dwelling spaces at affordable prices as developers upgrade infrastructure.

Leading the pack are Oberoi Realty and Raymond Realty. Raymond Limited entered the residential real estate market of Thane in 2019 through its land bank of around 100 acres. Oberoi Realty, on the other hand, announced its entry in November 2023.

On November 20, Oberoi Realty announced the launch of Forestville, a luxury residential project in the Kolshet area of Thane. The project, spread over 18 acres, has a MahaRERA (Maharashtra Real Estate Regulatory Authority) completion deadline of December 2029.

Oberoi Vs Raymond 

Oberoi Realty had said in a statement on November 20, 2023, that its project will be spread across 18 acres and will consist of five residential towers, predominantly 3 BHK apartments, starting from Rs 1.87 crore.

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However, ruling out any impact, Harmohan Sahni, CEO of Realty Business for Raymond Limited, said during the company’s latest analyst call on February 2, 2023, that there has been no impact on unit sales from Oberoi Realty’s upcoming project in Thane.

"It will not be right for us to comment on what the competition is doing but we can tell you confidently that there has been no impact on our sales. In fact, we have done better than the last quarter (Q3) also, and we continue to do so," he said.

Also read: Once Mumbai’s poor cousins, Powai and Thane are now preferred locations

Raymond Limited, he said, has no plans for launching commercial projects on its Thane land parcel as the focus predominantly remains on residential projects. "As of now, there are no plans for commercial projects. While we don't rule out the possibility, it all depends on what the opportunity is. But as of now, residential is what seems to be the most remunerative in terms of monetisation," Sahni said in the earnings call.

Meanwhile, in the coming days, Raymond Limited is expected to announce its first project in the Mumbai real-estate market.

Quality issue in Thane 

In a recent call, Vikas Oberoi, Chairman and Managing Director of Oberoi Realty, said there is a quality deficiency of real estate projects in Thane.

"People are not building or making that kind of quality. I think we are the first developer in Thane who have got L&T as a contractor. If you see some of the competition (in internal Thane markets), we see a Hiranandani (buildings by Hiranandani Developers) in that area, they quote Rs 25,000-26,000 per sq ft," Oberoi said.

According to Oberoi Realty, it has registered close to Rs 200-crore sales in the first shot of launching Forestville. The company expects Thane to be a high-growth market and expects it to remain price-sensitive, compared to Mumbai, where large ticket sizes are becoming the norm.

"We did not do anything different than what we do in the western suburbs (Mumbai).  But we wanted to be very sure that people who come in and buy are actual buyers and not pure speculators,” he said.

Also read: Rs 1 crore budget? Should you buy a 3 BHK in Panvel or 1 BHK in Mumbai?

Branded developers in Thane 

According to real estate experts, Thane, historically and even in the current context, has always seen several branded developers who have constructed or are constructing in that micro-market.

"You name it… Lodha, Rustomjee, Godrej, Hiranandani, Oberoi and Raymond, they are all present there. Thane is a natural extension for homebuyers looking for affordable homes. Now, some areas in Thane have become even more costlier than several suburban areas of Mumbai," said Pankaj Kapoor, Managing Director, Liases Foras, a real-estate research company.

"For example, in Thane’s outskirts, one will get a project at Rs 10,000 per sq ft. In the main city, the price is around Rs 25,000 per sq ft. The reason why Thane attracts homebuyers is that it is centrally connected to the eastern and western parts of Mumbai. There is a Metro network now in the making and the presence of a lot of IT companies also make it more lucrative for homebuyers," Kapoor added.