BOMAN IRANI, President of CREDAI and Chairman & MD of Rustomjee, in an exclusive
interview with ADITI THAKUR, reflects on his illustrious journey in the real estate
sector. From championing sustainable practices and addressing climate change to
fostering inclusivity in the workforce, Irani shares his insights on navigating market
shifts, regulatory reforms, and customer aspirations while shaping the future of
Indian real estate.
Can you share the legacy of the Rustomjee Group and how it has evolved over the years?
There’s an old saying, “When life throws you a lemon, make lemonade.” That’s exactly how I got into this business, quite by chance. At 19, I was tasked with selling my family property to fund our existing business. During this process, I interacted with developers, brokers, architects, and others in real estate, and I realised it was the best industry to be in, provided you follow a few fundamental principles:
a) Be process-driven.
b) Your integrity must be unchallengeable.
c) Stay focused on customer needs.
d) Build a great team that embodies these values.
Mumbai has always fascinated me, and architecture has been my passion since childhood. I remember standing outside the VT station, mesmerised by its beauty and intricate design.
These experiences and my real estate encounters led me into this field. We began with a modest project in Dahisar developing 21-25 sq mt of property into 54 apartments.
We are living in an era of tremendous opportunity. India is at a point where paradigm
shifts in development are not just possible they are happening
With just four team members, from the chairman to the watchman, everyone pitched in. We delivered on our promises and built a reputation by exceeding customer expectations.
My late mother insisted the company bear my father’s name, Rustom, as a mark of respect. Naming the company after him became a personal commitment to deliver the best, and this philosophy remains central to our operations. At Rustomjee, we prioritise customer satisfaction. Every homebuyer becomes a lifelong member of the Rustomjee family, and we strive to keep the brand top-ofmind through trust and excellence. That’s how Rustomjee has grown, step by step, to where we are today.
How did your focus shift to the core luxury market, considering you explored markets in Virar and Thane a decade ago?
Let me clarify, we’re not just a luxury developer we operate across all five residential price segments. From affordable housing in Virar to mid-mass projects in Thane and Borivali (1-3 cr), aspirational housing in Andheri to Bandra (3-7 cr), and premium and uber luxury developments, we cover it all. Our approach is data-driven. We study market trends, infrastructure developments, and consumer needs to determine locations and price points. Infrastructure is a crucial indicator where infrastructure grows, prosperity follows, and we align our projects accordingly
While our luxury projects, like Elements and Paramount, have elevated the brand’s perception, we remain committed to midmass and aspirational housing. We adapt lessons from luxury projects design, amenities, or experiences for mid-segment developments.
This cross-learning has allowed us to serve a diverse customer base while maintaining our reputation for excellence.
How have customer aspirations changed post-COVID, especially among Mumbai home buyers?
COVID significantly accelerated changes in consumer behaviour. The “YOLO” (You Only Live Once) mindset became prominent, leading people to prioritise quality of life over saving
exclusively for future generations. At Rustomjee, we’ve always been ahead of trends. For instance, we introduced large balconies in our projects even when the idea wasn’t mainstream. Post-COVID, we observed a surge in demand for such features and gated
communities that offer open spaces, amenities, and flexibility.
HNIs and well-travelled residents also seek international standards of living. Our partnership with Keppel Land, a government-backed Singaporean company, reflects this. We’ve elevated Thane’s residential offerings with projects like Word & Pistas. We also focus on lifestyle-enhancing amenities, from business centres and spas to distinct children’s zones. Our approach is data-driven, we collect feedback from completed projects to refine future developments. Every Rustomjee project is designed to cater to evolving customer needs, making each home a holistic experience.
“Real estate is evolving, and women will lead companies in future. Their empathy and understanding of homebuyers’ need gives them a unique perspective”
How have structural reforms like GST and RERA impacted the real estate sector in the last 10 years? How has it given a level of players for a few, and how harsh has it been on others?
Through CREDAI, the largest real estate developer body in India with over 14,000 members, we have consistently educated our members about the importance of regulatory
changes. While reforms like GST and RERA may initially seem harsh, they bring long-term benefits. GST, for instance, brought all developers into the formal economy. It created a level playing field by ensuring transactions occurred within a structured framework, aligning developers and suppliers with compliance requirements. However, there’s room for improvement. We’ve recommended that developers be free to choose between the assessment mode (12 percent GST with input tax credits) and the 5 percent composite scheme at the project’s outset. This flexibility would be revenue-neutral for the government but greatly benefit developers.
RERA, on the other hand, has been transformative. It introduced transparency and accountability, giving buyers confidence to invest in real estate. Like a stock market
regulator reassures investors, RERA has brought trust to real estate transactions. The industry has embraced this change wholeheartedly, leading to significant growth across all segments. Combined with the government’s vision, these reforms will lead to sustained growth that benefits consumers, developers, and the economy.
Could more significant consultation and a phased implementation by the government have mitigated the initial disruptions caused by structural reforms such as GST, RERA, and demonetisation?
One critical challenge with structural reforms is their abrupt implementation. Sudden changes, such as announcing a reform overnight, can disrupt the ecosystem. Transition periods are crucial. Even breaking or developing habits requires time. Take demonetisation,
for example. While a three-month transition period was provided, it could have been implemented more thoughtfully. The process might have been smoother if the `2000 note
had been phased out gradually over 15 days instead of becoming invalid overnight.
That said, structural reforms are essential, reflecting the larger vision of our Prime Minister’s goal of Viksit Bharat by 2047. As a real estate sector, we play a pivotal role in this vision. We drive GDP growth, work with over 250 allied industries, generate significant
employment, and contribute taxes to enrich both state and country. The adage “first you build your home, and then your home builds you” captures real estate’s profound impact. Homes shape lifestyles, communities, and prosperity. While regulatory changes are vital, introducing them with transition mechanisms will ease implementation and benefit all
stakeholders.
Could you share your thoughts on achieving a carbon-neutral future in real estate? How are Rustomjee, as a brand, and CREDAI, the nation’s nodal agency for real estate, addressing climate change?
At Rustomjee, we understood early on that sustainability is no longer optional but essential. Nearly two years ago, we committed to making our developments net carbonzero, taking proactive steps before legislation mandates such practices. One of our landmark projects, Kasara, is a testament to this vision. It has been designed with net carbon-zero principles, focusing on reducing environmental impact while creating a development aligned with global sustainability goals.
Achieving carbon neutrality involves rethinking how we build. It’s about using less resource-intensive materials, adopting renewable energy, and integrating green technologies into every construction and operation phase. This includes solar energy installations, rainwater harvesting systems, waste recycling mechanisms, and energy-efficient designs that reduce the carbon footprint of our developments.
At CREDAI, we are championing these practices across the real estate sector. We’re equipping developers with the knowledge and tools to embrace sustainable practices through collaborations with leading institutions like IIM Bangalore, IGBC, and GRIHA. This involves educating developers on energy-efficient building techniques, sustainable materials, and best practices for reducing emissions.
India has set an ambitious target of achieving net carbon neutrality by 2070. However, at CREDAI, we’ve raised the bar. Our former president, Harshavardhan Ji, proposed achieving this by 2050. We can do even better, our goal should be 2047, the centenary of India’s
independence. Achieving this would align with the national vision of Viksit Bharat and place Indian real estate at the forefront of global sustainability efforts. This isn’t just about compliance; it’s about responsibility. As developers, we must recognise that our actions
directly impact the planet. We can’t continue taking from the earth without giving back. Sustainability has to become an intrinsic part of our mindset, guiding every decision.
We are living in an era of tremendous opportunity. India is at a point where paradigm shifts in development are not just possible, they are happening. If we, as an industry, commit ourselves to sustainable and carbon-neutral practices, we can drive a change that benefits not only our businesses but also future generations. The time to act is now, and I am optimistic that together, we can create a greener, more sustainable future for real estate and the nation.
How is Rustomjee encouraging women’s participation in the workforce, particularly in leadership roles?
Good. You asked this question since I’m particularly passionate about it. Women have been given a secondary status in many industries for too long. At Rustomjee, we’re committed
to changing that narrative. We actively promote women engineers on our sites and encourage them to take on leadership roles. Beyond gender inclusivity, we also work with
differently abled individuals, providing opportunities for self-reliance and growth. Inspired by the Tata Group, we focus on equal opportunities across all levels. Talent and capability, not gender or physical ability, are the only criteria for selection. This approach delivers better results and fosters a sense of purpose and fairness within the organisation. Real estate is evolving, and women will lead companies in future. Their empathy and understanding of homebuyers’ need gives them a unique perspective. I’m optimistic
about this future and committed to supporting initiatives that drive inclusivity and diversity in the workforce.
