homebusiness Newscompanies NewsRedevelopment projects an attractive opportunity of growth, says Mahindra Lifespaces
Redevelopment projects an attractive opportunity of growth, says Mahindra Lifespaces
Mahindra Group’s realty arm Mahindra Lifespace Developers Ltd. saw healthy growth in the bookings for quarter three and most recently, in its conference call, maintained guidance for Rs 2,500 crore in sales by FY25.
Mumbai has limited opportunities for Greenfield development and the only viable opportunity for any new development is through redevelopment. The redevelopment market is estimated to be worth over Rs 30,000 crore.
Mahindra Group’s realty arm Mahindra Lifespace Developers Ltd. views redevelopment projects as an attractive opportunity of growth.
Speaking to CNBC-TV18, Arvind Subramanian, MD & CEO, Mahindra Lifespaces, said, “Many of the suburbs are well built-out, so there is no vacant land available and society redevelopment offers that opportunity to do good modern, contemporary developments in these neighbourhoods.”
The company has bagged a project to redevelop two adjacent residential societies in Santacruz West, Mumbai in January 2023. This particular redevelopment project has a revenue potential of Rs 500 crore. It will be developed on land measuring approximately 1.27 acres of land.
The company saw healthy growth in the bookings for quarter three and most recently, in its conference call, maintained guidance for Rs 2,500 crore in sales by FY25.
“Between FY24 and early FY25, we will be on the cusp of that runrate,” he said.
The company, in its conference call, mentioned that the demand for sub-Rs 40 lakh category is on the weaker side.
“We are starting to see some tightness in demand in the Happiness segment and particularly in the Rs 30-40 lakh ticket sizes,” he explained.
According to him, this tightness of demand is a combination of factors. “Interest rates have gone up and with inflation, the affordability for families has been constrained over the last few quarters,” he mentioned.
For more details, watch the accompanying video
(Edited by : Pradeep John)
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