Mahindra Lifespace has secured approval to develop an additional 104 acres within its Mahindra World City project near Chennai. The Ministry of Commerce and Industry has allowed the partial denotification of 42.073 hectares (approximately 104 acres) of SEZ land, enabling its use for commercial and residential projects. This move supports Mahindra Lifespace's strategy to meet rising market demand, with plans to launch projects in Chennai and Jaipur over the next year. The company aims for a Gross Development Value of INR 45,000 crore (USD 5.4 billion) from residential projects alone. Shares have risen by 24% over the past year, reflecting strong investor confidence.
Mahindra Lifespace, a major real estate developer in India, has received approval to develop additional land within its Mahindra World City project near Chennai. This approval allows the company to better meet market demand for commercial and residential space.
A subsidiary of Mahindra Lifespace received approval from the Ministry of Commerce and Industry to partially remove 42.073 hectares (approximately 104 acres) of land from its designation as Special Economic Zone (SEZ) land. This "denotification" frees up the land for development under different regulations, allowing Mahindra Lifespace to lease it for commercial or residential purposes.
Mahindra Lifespace is optimistic about the Indian real estate market, citing factors like rapid urbanization, rising incomes, and government reforms like RERA (Real Estate Regulation and Development Act), GST (Goods and Services Tax), and IBC (Insolvency and Bankruptcy Code). The company plans to launch projects in Chennai and Jaipur within the next 12 months and expects strong demand, particularly for residential developments. Their goal is to achieve a Gross Development Value of INR 45,000 crore (approximately USD 5.4 billion) solely through residential projects.
Mahindra World City is a large-scale development project encompassing commercial, residential, and social zones. The project leverages India's growing urban population, projected to reach 40% by 2030, and the increasing demand for quality commercial and residential space. The company has earmarked up to 100 acres (approximately 40 hectares) of land within the project for future development, with a potential of over two million square feet.
Mahindra World City (MWC) Chennai is Mahindra Lifespace's first integrated city project with a leasable potential of 1,145 acres. This includes space within the Special Economic Zone (SEZ), Domestic Tariff Area (DTA), and residential and social zones. Shares of Mahindra Lifespace are higher by 24 percent over the last one year, and 11 percent year-to-date (YTD) as of July 17, 2024.
Mahindra Lifespace's stock price has seen a significant rise, reflecting investor confidence in the company's future prospects. The approval for denotification and the planned launches in Chennai and Jaipur position Mahindra Lifespace to capitalize on the growing real estate market in India.
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