Mahindra Lifespaces to Shift Focus to Premium Housing by FY30, Phasing Out Affordable Segment
Mahindra Lifespaces, a leading real estate developer, plans to exit the affordable housing market by FY30 and focus on premium housing projects. This strategic shift aligns with the broader Mahindra Group's focus on premium SUVs.
Mahindra LifespacesAffordable HousingPremium HousingReal EstateStrategic ShiftReal Estate NewsMay 27, 2025
Managing Director and CEO Amit Kumar Sinha explained that the company will concentrate on premium housing projects, which are defined as those priced between ₹1 crore and ₹10 crores in the National Capital Region (NCR) and Mumbai. In other markets like Pune and Bengaluru, the premium segment is priced between ₹1 crore and ₹5 crores. Sinha stated, “Affordable housing has not been very successful for us, and we want to phase it out over time while fulfilling our existing customer commitments.”
The company currently has affordable housing projects under the Mahindra Happinest brand in Palghar and Kalyan near Mumbai, as well as in Chennai. Sinha noted, “By FY28-29, all of these commitments will be completed, and our portfolio in FY30 will have zero affordable housing projects. We do not have plans to participate in the affordable housing market for the time being.”
Mahindra Lifespaces is also focusing on outright land purchases, joint development agreements (JDAs), and housing society redevelopment. Sinha mentioned, “We are not yet venturing into slum rehabilitation projects, which are high-risk, high-reward, but we will consider them once we have successfully executed our current deals.”
To rebrand itself as a premium housing company, Mahindra Lifespaces plans to expand further into the Mumbai, Pune, and Bengaluru real estate markets. Sinha emphasized, “We are trying to create a brand appeal that is cool and different. Our premium projects will come with the best space index, greenery, amenities, right price point, and social infrastructure.”
In 2024, Sinha told HT.com that the company aims to rebrand itself as a premium housing company and launch projects that offer the best value for money. He compared the company's strategy to Mahindra's successful SUV models, such as the XUV700, which offers premium features at a competitive price. “We want to give the same feel when it comes to homes. Our projects should make buyers feel they got a sweet deal with the best features and amenities,” Sinha said.
Mahindra Lifespaces' financial performance in Q4FY25 reflects this strategic shift. The company's profit for the quarter grew by 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 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 strategic shift to premium housing is expected to enhance its market position and brand value in the coming years.
Frequently Asked Questions
What is Mahindra Lifespaces' new focus in the real estate market?
Mahindra Lifespaces is shifting its focus to premium housing projects, defined as those priced between ₹1 crore and ₹10 crores in NCR and Mumbai, and between ₹1 crore and ₹5 crores in other markets like Pune and Bengaluru.
Why is Mahindra Lifespaces exiting the affordable housing segment?
The company has found that affordable housing has not been very successful for them. They plan to fulfill existing customer commitments by FY28-29 and phase out affordable housing projects by FY30.
What are the key markets where Mahindra Lifespaces will focus on premium housing?
The key markets include NCR, Mumbai, Pune, and Bengaluru. The company aims to expand its presence in these cities with premium housing projects.
What is Mahindra Lifespaces' strategy for brand repositioning?
The company plans to rebrand itself as a premium housing company, focusing on projects that offer the best space index, greenery, amenities, right price point, and social infrastructure, similar to the premium features offered by Mahindra's SUVs.
What were Mahindra Lifespaces' financial results in Q4FY25?
In Q4FY25, the company's profit grew by 19.02% Y-o-Y to ₹85.1 crore, while revenue from operations dipped by 35.4% Y-o-Y to ₹9.24 crore. The company also added projects with a gross development value (GDV) of ₹3,650 crore.
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