MAHINDRA LIFESPACES BETS BIG ON PREMIUM HOUSING ACROSS CORE MARKETS

Which segment of housing is your current focus and any plans to foray in affordable housing?
Mahindra Lifespaces current focus is on mid-premium and premium formats. While the company will fulfil existing commitments under its ‘Happinest’ affordable housing brand, it has no plans to pursue new affordable projects. Land is the single biggest contributor to housing cost and fringe locations like Palghar and Boisar face challenges in connectivity and employment access, Labor costs are rising, materials fluctuate, and statutory costs remain. We’d love to do it, but the financials don’t work out. As a listed entity, we have a responsibility to our shareholders.

Market Strategy: Three Plus Two
Mahindra Lifespaces has streamlined its residential focus to three core cities—MMR, Pune, and Bengaluru and industrial-linked residential components in Chennai and Jaipur. We want to scale here. The company is preparing for major launches in Mahalaxmi, Bhandup, and Whitefield, Bengaluru, each expected to be in the ?2,000 crore range. A second-phase launch on an existing plot is also in the pipeline. We want to over-index on all three markets.

Development and Funding: Scale, Guardrails, and Zero Debt
The company does outright purchase, joint development, redevelopment, and stressed asset acquisition when viable. But we look at developments above ?1,000 crore. Each opportunity is evaluated against f inancial guardrails set by the board to meet our return thresholds— return on equity or capital. Our recent ?1,500 crore rights issue helped the company retire all its debt. In fact, we have negative debt—more cash than debt on the books. At the right time, we can raise funds via equity, ICDs, or partnerships. Internal collections from past launches also support capital deployment.

What is your advice to homebuyers and your industry peers?
There’s no perfect time to buy a home. You’ll always feel short of money—buy anyway. It’s the biggest asset of your life, the biggest security. Choose developers big or small that have built reputation over the years and have demonstrable track record. I call upon my fellow developers to take collective responsibility for the sector’s reputation and future. Let’s build a sector truly worthy of respect.

China sells more than a crore homes every year. We sold five lakh and clapped. Just imagine the opportunity. Let’s make this a pull sector, not a push.