The managing director and chairman of Keystone Realtors (Rustomjee Group), Boman Irani, emphasized that small business owners and salaried individuals are the company's main clients. The demand for housing and stock market volatility do not now significantly correlate, he continued.
On February 11, 2025, Irani was questioned on an investor call if he thought developments in the stock market would affect the real estate sector. Mumbai's real estate market is still thriving, he told everyone, particularly for small business owners and salaried professionals. Luxury residences are still in demand, he said, despite reports of a slump. High-end properties costing more than ₹10 crore are still performing well, according to the most recent data, which shows 12,000 home registrations in January.
The company's primary focus is on rebuilding projects in the Mumbai Metropolitan Region (MMR), Irani added, and it intends to duplicate its Thane market success in neighboring areas like Dombivli's. Keystone Realtors has previously shown a reasonably priced property in Dombivli, which Irani thinks will profit from the area's increased metro network connectivity and proximity to Thane.
About the future of the real estate industry, Irani clarified that the company has concentrated its acquisitions in recent years on the mid-mass and aspirational housing segments, with over 73% of its acquisitions falling into these categories. About 40% of the company's planned projects will be in the premium and super-premium categories, 40–45% will be in the mid-mass and aspirational segments, and 10-15% will be affordable housing. This represents the company's intention to provide a balanced mix of homes across price points.
Irani added that Keystone Realtors is keeping an eye out for chances in the South Mumbai real estate market, namely in the luxury and premium markets. In regions like Prabhadevi and Mahim, which have been experiencing an increase in demand, the company is about to acquire additional projects.
To sum up, Keystone Realtors is still committed to strategic expansion, which includes redevelopment initiatives in critical locations like Dombivli, which Irani views as a developing center, much like Thane's real estate market has changed recently. In the upcoming years, Dombivli is anticipated to experience substantial growth due to the continuous improvement of its infrastructure and job prospects.
FAQ,s
Q1. Who is Boman Irani in this context?
A: He is the Chairman & Managing Director of Keystone Realtors (Rustomjee Group).
Q2. What did he say about the connection between stock markets and housing demand?
A: He said that currently, there is no strong correlation between stock market performance and demand for real estate.
Q3. What is driving real estate demand, according to him?
A: He believes much of the demand comes from salaried individuals and small business owners, rather than from stock market gains.
Q4. Did he refer to any data to support his view?
A: Yes, he referenced Mumbai/ MMR registering over 900 apartments priced ₹10+ crore in FY24 and strong registrations in January, using it to argue that real estate demand remains strong independent of stock markets.
Q5. Is this view widely accepted in real estate circles?
A: It’s one perspective. Some believe stock performance can influence investor sentiment and liquidity, but Irani emphasizes that end-user demand remains primary in his markets.