Mahindra Life space to go deep in Mumbai, Pune and Bengaluru
Mahindra & Mahindra Group’s fast-growing real estate arm Mahindra Lifespaces is confident of achieving double-digit revenue as well as volume growth in the upcoming financial year 2024-2025.
Mahindra Lifespaces CEO and MD Amit Kumar Sinha in an interaction said unlike few other realty players, who are expanding their reach in new cities, their strategy is to go deep in three markets — Mumbai, Pune and Bengaluru.“Our strategy is simple: go for depth rather than breadth. Mumbai is a very stable market and our share here is less than 1% while all the branded players’ share is less than 20%. This leaves so much opportunity for us to grow. Then the next two stable cities are Pune and Bengaluru. Even between the 2012-2016 slowdown period, these two markets grew at a healthy pace,” said Sinha.
Mahindra has a premium property in Gurgaon (Mahindra Luminare) as well but the developer is not very keen on expanding here.
The company recently acquired a 9.4-acre land parcel in Bengaluru where it sees a gross development value (GDV) of Rs 1,700 crore. Late last month, the developer had announced selling housing units worth Rs 800 crore in Mumbai within three days.
“We want to be in the end-user market rather than the investor-driven market. The difference between Delhi NCR and other markets is that the latter attracts end consumers. The share of investors in other real estate markets is about 5-10% of residential sales while in Delhi it is close to 50%. In the past, it used to be as high as 90%,” said Sinha, adding that there are signs of oversupply in the Delhi NCR market, a concern for the industry, In the soon-to-be-concluded FY24, 50% of Mahindra’s residential business will be coming from Mumbai while Bengaluru and Pune would contribute 20% each.
