'We could see land prices moderating over time'

Interest rate changes will certainly help the affordable segment in the near term, but such projects face multiple structural challenges.

- Amit Kumar Sinha, MD & CEO, Mahindra Lifespaces

or so, the environment clearance issue in the Mumbai Metropolitan Region (MMR) has affected the industry's new launches. You are phasing out affordable housing to focus on the premium space. Is it prudent when rates are on a decline and affordable housing is rate-sensitive? They have been challenging for us on both the demand and cost sides. To make affordable segments' economics work, we ended up taking land parcels far away from job centres and the connectivity never materialises. Consequently, we have taken the decision to exit the affordable segment after carefully evaluating the commercial aspects and financial returns.

The affordable segment for the industry has de-grown from 45% in CY21 to 17% in Q1FY26. The premium/mid-premium segment has grown from 49% to 65% during the same time. We remain committed to play in the premium segment.