July 10, 2024: HDFC Capital is planning to make a substantial investment in affordable and mid-income housing, planning to allocate over $2 billion to this sector in India’s major property markets by the end of 2025. This initiative aims to address supply-side constraints. With the Abu Dhabi Investment Authority (ADIA) as a key investor, HDFC Capital is working towards financing 1 million affordable homes in India through partnerships with various developers.
The company intends to deploy at least $1 billion annually over the next two years in affordable and mid-income housing across India’s top 15 cities, including the Mumbai region, Delhi NCR, Bengaluru, Pune, Hyderabad, Chennai, Kolkata, and Ahmedabad. These funds will be used to support the construction and development of affordable housing units. In the past six months alone, HDFC Capital has committed $1 billion to such projects.
Established in 2016 to align with the Indian government’s ‘Housing for All’ goal, HDFC Capital provides flexible, long-term capital to developers for affordable housing development. Unit prices in its portfolio start from Rs 12.50 lakh, with around 40% of units priced below Rs 42 lakh. The fund has invested in over 175 projects, contributing to the development of over 250,000 units.
HDFC Capital manages a $3.5 billion funding platform and serves as the investment manager for HDFC Capital Affordable Real Estate Funds 1, 2, and 3. ADIA, holding a 10% stake in HDFC Capital Advisors, is the primary investor in these funds, marking its first global investment in a fund manager.
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