Mahindra Lifespaces to Exit Affordable Housing by FY30, Shifts Focus to Premium Segment
Mahindra Lifespaces, the real estate arm of the Mahindra Group, plans to exit the affordable housing segment by FY30 and shift its focus to premium housing projects in key markets like Mumbai, Pune, and Bengaluru.
Mahindra LifespacesAffordable HousingPremium HousingReal EstateMumbaiReal Estate MumbaiMay 27, 2025
Sinha explained that the company will concentrate on offering premium homes that fall between the affordable and luxury segments. “If you look at Mahindra, it is known for SUVs, not for small cars or luxury cars. We have tried both, and it has not been very successful,” he said. This parallel with the automotive sector highlights the company's focus on a mid-premium market, which is defined as homes priced between ₹1 crore to ₹10 crores in NCR and Mumbai, and between ₹1 crore to ₹5 crores in other markets like Pune and Bengaluru.
During the Q4 FY25 investor call, Sinha elaborated on the company’s strategy. “Affordable housing has not been successful for us, and we plan to phase it out over time. We will fulfill our customer commitments, but by FY28-29, all affordable housing projects will be completed. By FY30, we will have zero affordable housing projects,” he stated. Currently, Mahindra Lifespaces has affordable housing projects under the Mahindra Happinest brand in Palghar and Kalyan near Mumbai, as well as in Chennai.
The company is also focusing on outright land purchases, joint development agreements (JDA), and housing society redevelopment. Sinha noted, “We are not yet venturing into slum rehabilitation projects, but we will consider them in the future if we can execute our current deals successfully.” He emphasized the need to change the brand perception and create a more appealing and unique image for the company.
In 2024, Sinha had told HT.com that Mahindra Lifespaces plans to rebrand itself as a premium housing company and expand further into the Mumbai, Pune, and Bengaluru real estate markets. “We now have premium projects and will rebrand ourselves accordingly,” he said. He drew a comparison with Mahindra's SUVs, such as the XUV700, which offers premium features at a more affordable price point. “Our projects should have the best space index, greenery, amenities, right price point, and social infrastructure,” he added.
Mahindra Lifespaces was established in 1994 and has a development footprint spanning 41.11 million sq ft (saleable area) of completed, ongoing, and forthcoming residential projects across seven Indian cities. The company’s Q4FY25 results showed a profit growth of 19.02% year-on-year (Y-o-Y) to ₹85.1 crore, while revenue from operations dipped by 35.4% Y-o-Y to ₹9.24 crore. Total expenses stood at ₹72.04 crore, down by 3.72% Y-o-Y. In the pre-sales segment, the company closed sales worth ₹1,055 crore, down by 2.9% year-on-year. On the business development front, the company added projects with a gross development value (GDV) of ₹3,650 crore in Q4FY25, compared to ₹2,040 crore in Q4FY24.
Mahindra Lifespaces is also targeting significant revenue from housing redevelopment projects in Mumbai. The company has already won a redevelopment deal worth ₹950 crore for three Mumbai housing societies and aims to generate ₹1200 crore in revenue from two housing redevelopment projects in the city.
Frequently Asked Questions
Why is Mahindra Lifespaces exiting the affordable housing segment?
Mahindra Lifespaces is exiting the affordable housing segment because it has not been successful for the company. The focus will shift to premium housing projects, which align better with the broader Mahindra brand strategy.
What is the target price range for Mahindra Lifespaces' premium housing projects?
Mahindra Lifespaces defines premium housing as projects priced between ₹1 crore to ₹10 crores in NCR and Mumbai, and between ₹1 crore to ₹5 crores in other markets like Pune and Bengaluru.
What other real estate strategies is Mahindra Lifespaces focusing on?
The company is focusing on outright land purchases, joint development agreements (JDA), and housing society redevelopment. They are not currently venturing into slum rehabilitation projects.
What are Mahindra Lifespaces' financial results for Q4FY25?
In Q4FY25, Mahindra Lifespaces reported a profit growth of 19.02% year-on-year (Y-o-Y) to ₹85.1 crore, while revenue from operations dipped by 35.4% Y-o-Y to ₹9.24 crore. Total expenses stood at ₹72.04 crore, down by 3.72% Y-o-Y.
What are Mahindra Lifespaces' future plans in the real estate market?
Mahindra Lifespaces plans to rebrand itself as a premium housing company and expand further into the Mumbai, Pune, and Bengaluru real estate markets. They aim to generate significant revenue from housing redevelopment projects in Mumbai.
Related News Articles
Reviving Unsold Real Estate Inventory: A New Opportunity
Housing, Realty, Real Estate
Hyderabad's Luxury Real Estate Market Sees Sharp Rise in Demand
The city's residential market has dramatically transformed, establishing itself as one of India's most dynamic and sought-after real estate destinations.
Real Estate Investment Trusts in India: Recent Regulatory Updates
SEBI introduces new regulations for Small and Medium Real Estate Investment Trusts, revises pricing methodology for privately placed Infrastructure Investment Trusts, and amends SEBI (InvIT) Regulations, 2014.
Arvind Gurumurthy: A Renowned Legal Expert in M&A, Private Equity, and Corporate Law
Arvind Gurumurthy, a distinguished legal professional, has made significant contributions in the fields of M&A, private equity, and corporate law. With a successful seven-year tenure as Partner at Kochhar & Company, Arvind has extensive experience in hand
India's Luxury Housing Sales Surge in 2024, Show 53% Y-o-Y Growth: CBRE Report
印度的豪华住房销售在2024年强劲增长，同比增长53%，根据CBRE的报告，这一增长主要集中在包括班加罗尔、加尔各答、海得拉巴和金奈等城市。这一数据再次证明了印度住宅房地产市场的活跃度。
From Mumbai to MMR: A Journey Through Urban Expansion
Explore the transformation of Mumbai from a bustling city to the expansive Mumbai Metropolitan Region (MMR), and the significant real estate developments that have shaped the region.