Mahindra Group Plans to Exit from Affordable Housing Segment By 2030

Key Highlights

• Mahindra Lifespaces is exiting affordable housing by FY30 to focus on more premium categories of real estate.
• CEO Amit Kumar Sinha announces Mahindra Lifespaces new strategic realignment to focus on tipping into its already developed premium brand identity.
• All Mahindra Happinest affordable housing units across the nation will be phased out as the company pivots to mid-to-premium housing in major urban areas.

The Mahindra Group's real estate arm, Mahindra Lifespaces, has announced plans to exit affordable housing for now, stating it will have no affordable housing projects on its books by FY30.

Managing Director and CEO Amit Kumar Sinha said the company aims to realign its real estate strategy to be more in line with the overall Mahindra brand image, which sells premium SUVs, and not affordable or luxury vehicles. Mahindra Lifespaces will focus on premium homes that sit somewhere between affordable and luxury housing.

Sinha said the company is going to stop affordable housing projects and focus on premium housing instead.

"If you look at Mahindra, it is known for SUVs (cars), not for small cars, not for luxury cars. We have tried both, we have even tried two-wheelers, and it has not been very successful."

Drawing a parallel with Mahindra's core automotive strategy, he said, "If you look at Mahindra, it's known for SUVs, not for small or luxury cars. We've tried both, we have even tried two-wheelers, and it has not been very successful,” he said.

Speaking during the Q4 FY25 investor call, Sinha said, "We have our focus on premium. Premium is defined as more than Rs. 1 crore to Rs. 10 crores in NCR and Mumbai, above which the 10 crore market is a threshold for luxury. But in other markets like Pune and Bengaluru, Rs. 1 to Rs. 5 crores is mid-premium and premium. So, that is what we want to focus on."

"Affordable has not done well for us, and that is something we want to sunset over a period of time. We have to fulfil our customer commitments, which we will do over time," Sinha said.

Mahindra Lifespaces currently has affordable housing projects under the Mahindra Happinest brand in Palghar and Kalyan near Mumbai, as well as in Chennai.

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