Mahindra Lifespace anticipates a fivefold increase in bookings by the financial year 2028, driven by strategic expansions and innovative projects. The company aims to use its reputation for quality and sustainability by focusing on technology integration and efficient project execution to attract a broader customer base. This projection is supported by strong market demand and Mahindra Lifespace's commitment to delivering premium residential and commercial properties. Enhanced marketing efforts and customer-centric initiatives are also expected to play a crucial role in achieving this ambitious target. Overall, Mahindra Lifespace is poised for significant growth, reinforcing its position as a leader in the real estate sector.
Mahindra Lifespace, the real estate arm of the Mahindra Group, is charting an ambitious course for the future. The company, under the leadership of CEO Amit Kumar Sinha, has outlined a plan to significantly accelerate land acquisition, project launches, and most importantly, sales bookings. This aggressive strategy signifies Mahindra Lifespace's intent to become a major player in the Indian real estate landscape.
Sinha aims to grow the project pipeline by ten times and the sales bookings of the Mahindra group's real estate division by five times. The company's sales bookings in FY23 were INR 1800 crore; by FY28, they are expected to reach INR 8,000-10,000 crore, more than five times that amount. It had its highest-ever bookings of INR 2,328 crore in FY24.
The company has a project pipeline of INR 3,000-6,000 crore for FY25, mostly in Mumbai, Pune, and Bangalore where projects are in various stages of development. It has a big project in Thane, with a revenue potential of INR 8,000 crore, which is currently under approval stage.
This may be ambitious of Mahindra Lifespace but is still small compared to the top listed developers such as Godrej Properties and Prestige Estates, which had bookings of INR 10,000 -12,000 crore in FY23. In FY24 both crossed sales bookings of INR 20,000 crore.
Although this is an ambitious plan from Mahindra Lifespace, it pales in comparison to the bookings of INR 10,000-12,000 crore made in FY23 by major listed developers like Godrej Properties and Prestige Estates. Both exceeded sales reservations of INR 20,000 crore in FY24. The corporation used to take six months to purchase land and a further year to start a project until he took control.
Currently, collaborative development and the renovation of existing Mumbai residential structures account for the remaining 20% of the land, which is acquired through outright purchases. In the future, it will engage in further collaborative ventures and renovations in Mumbai, as well as outright purchases in Bangalore and Pune.
Sustainability is another key focus area for Mahindra Lifespace. The firm is also initiating projects related to net zero energy, net zero trash, and net zero energy. Projects with net zero energy use only renewable energy sources for all energy consumption on the premises. Through the use of solar panels and climate responsive design (CRD), the firm lowers its energy use from 18% to 67%.
Additionally, it partners with distributors to acquire green power. Waste is recycled or removed in net zero energy buildings. While there is a slowdown in the National Capital Region, it is doubling down in Mumbai, Bengaluru and Pune, the last two being power priced but have less inventory overhang and high absorption. In FY25 or FY26, NCR could have some sparks since it's an investor's market.
Mahindra Lifespace's aggressive expansion plans, focus on key markets, streamlined processes, and commitment to sustainability paint a picture of a company poised for significant growth. By successfully executing this ambitious strategy, Mahindra Lifespace has the potential to establish itself as a major force in the Indian real estate market.
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