Mahindra Lifespaces to Exit Affordable Housing by FY30, Refocuses on Premium Residential Segment
In a strategic pivot aligned with the broader Mahindra Group brand, Mahindra Lifespaces has announced its phased exit from the affordable housing market by FY30. The move, revealed during the company’s Q4 FY25 investor call, signals a sharper focus on the mid-to-premium housing segment, mirroring Mahindra’s shift in the automotive sector toward premium SUV offerings.
A Strategic Shift Toward Premium Living
Amit Sinha, MD & CEO of Mahindra Lifespaces, stated that the company will gradually scale down its affordable housing projects, with the aim of having zero affordable units on the books by FY30. The developer currently markets its affordable housing under the Mahindra Happinest brand, with projects located in Palghar, Kalyan, and Chennai.
“We are now firmly focused on the premium segment, which for us ranges from ₹1 crore to ₹10 crore in key markets like NCR and Mumbai,” Sinha said. “In cities like Pune and Bengaluru, the ₹1 crore to ₹5 crore price range represents the mid-premium and premium space that we are targeting.”
Why the Affordable Segment Is Being Phased Out
According to Sinha, affordable housing has underperformed for the company and does not align with its long-term strategic objectives. While all existing commitments under the Happinest brand will be honored, Mahindra Lifespaces expects these obligations to conclude by FY28–FY29.
“Affordable hasn’t delivered as expected for us,” Sinha noted. “So, while we will complete ongoing developments and handovers, we will sunset this vertical gradually over the next few years.”
Aligning with Mahindra’s Brand Identity
This decision is also rooted in a broader organizational strategy. Mahindra Group has increasingly moved toward a premium branding ethos, especially visible in its automobile division, which focuses heavily on SUVs priced above ₹15 lakh. Mahindra Lifespaces now plans to reflect that same ethos in its real estate offerings—premium homes that cater to aspirational, upwardly mobile buyers, but stop short of entering the luxury housing niche.
Sinha clarified that super-luxury homes above ₹10 crore in Mumbai and NCR are not the company’s immediate focus. Instead, the sweet spot remains the ₹1–10 crore bracket, depending on the region.
Financial Snapshot: FY25 Q4 Performance
While the strategic realignment is underway, Mahindra Lifespaces reported a 19.02% year-on-year increase in profit, reaching ₹85.1 crore in Q4 FY25. However, revenue from operations dropped 35.4% YoY to ₹9.24 crore, largely due to project delivery cycles and changing portfolio mix.
Total expenses fell by 3.72% YoY to ₹72.04 crore
Pre-sales dipped slightly by 2.9% YoY to ₹1,055 crore
New project additions brought in a Gross Development Value (GDV) of ₹3,650 crore, compared to ₹2,040 crore in Q4 FY24
These figures underline that while operational revenue declined temporarily, the company’s profit margins and future project pipeline remain robust.
Looking Ahead: Premium-Focused Pipeline
As Mahindra Lifespaces phases out affordable housing, investors and homebuyers can expect a renewed portfolio of premium residential developments, particularly in high-growth urban corridors. The company’s development focus will center around Mumbai Metropolitan Region (MMR), Pune, Bengaluru, and NCR, tapping into rising demand for homes that offer superior amenities, locations, and finishes.
This transition underscores Mahindra Lifespaces’ evolution from a volume-driven player to a value-led premium developer—a trend increasingly visible across India’s organized real estate sector.
Conclusion:
With a clear exit strategy from affordable housing and a strong push toward the premium market, Mahindra Lifespaces is reshaping its identity to better match both its corporate vision and the changing demands of urban homebuyers in India. The move sets the tone for a new phase of curated, high-quality developments aimed at discerning consumers—one that aligns with the Mahindra legacy of brand trust, aspirational value, and long-term performance
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