Mahindra Lifespaces to Exit Affordable Housing by FY30, Shifting Focus to Premium Segment

Mahindra Lifespaces, the real estate arm of the Mahindra Group, announced its strategic decision to exit the affordable housing segment by the end of the financial year 2030. The company plans to pause development in affordable housing and instead concentrate on premium residential projects, aligning its real estate business more closely with the broader Mahindra brand strategy.

Amit Kumar Sinha, Managing Director and CEO of Mahindra Lifespaces, explained that the company’s real estate focus will now mirror Mahindra’s automotive strategy, which prioritizes premium SUVs rather than small or luxury vehicles. Similarly, the real estate division will emphasize premium homes that fall between the affordable and luxury categories.

Mr. Sinha clarified that the company aims to discontinue its affordable housing projects gradually while fulfilling all existing commitments. Currently, Mahindra Lifespaces has affordable housing developments under the Mahindra Happinest brand located in Palghar, Kalyan near Mumbai, and Chennai. These commitments are expected to be completed by FY28-29, after which the company will no longer have affordable housing projects in its portfolio.

The premium housing segment for Mahindra Lifespaces is defined differently based on the region. In major markets such as Mumbai and the National Capital Region (NCR), premium homes are priced between ₹1 crore and ₹10 crores. In other cities like Pune and Bengaluru, the range is narrower, between ₹1 crore and ₹5 crores. Mr. Sinha emphasized that this focus on premium housing aligns with the company’s aim to build a distinctive brand appeal in the real estate market.

In addition to outright land purchases, Mahindra Lifespaces is prioritizing joint development agreements (JDAs) and housing society redevelopment projects. However, the company has not yet ventured into slum rehabilitation projects, although it may consider them in the future if the risk-reward balance proves favorable and the company is confident in executing these complex deals.

The decision to focus on premium homes comes as part of a larger plan to rebrand Mahindra Lifespaces. Mr. Sinha previously shared that the company wants to project a modern, appealing image that matches the experience offered by Mahindra SUVs. He highlighted the company’s approach to premium projects, aiming to deliver the best space utilization, greenery, amenities, social infrastructure, and competitive pricing.

Comparing the real estate business to Mahindra’s SUV lineup, Mr. Sinha noted that the brand’s vehicles, such as the XUV700, offer premium features at a price point lower than luxury competitors. The company aims to replicate this approach in housing, providing well-designed homes with quality features at reasonable prices.

Mahindra Lifespaces reported its financial results for the fourth quarter of FY25 with a 19.02% year-on-year increase in profit, reaching ₹85.1 crore. However, revenue from operations fell by 35.4% year-on-year to ₹9.24 crore. Total expenses decreased by 3.72% to ₹72.04 crore during the same period.

In terms of sales, the company recorded pre-sales worth ₹1,055 crore in Q4FY25, representing a slight decline of 2.9% year-on-year. On the development front, the company added new projects with a gross development value (GDV) of ₹3,650 crore during Q4FY25, a significant increase compared to ₹2,040 crore in Q4FY24.

Established in 1994, Mahindra Lifespaces has developed a footprint spanning over 41 million square feet of saleable area across seven Indian cities. The company continues to focus on expanding its presence in key markets, with a clear strategy to cater to the premium housing segment while gradually exiting affordable housing.

Image source- mahindralifespaces.com