HDFC Capital, the real estate investment arm of the HDFC Group, is set to invest Rs 1,500 crore in a new development platform with the Eldeco Group. This partnership aims to build 18 residential projects across tier 2 and tier 3 cities in India. The total value of these projects is estimated to be around Rs 11,000 crore, with more than 10 million square feet of residential space planned for development.
Focusing on Housing Growth in Smaller Cities
The new platform will focus on housing in small towns and emerging urban areas, especially within a 300-kilometer radius of major cities. These regions include Haryana, Punjab, Himachal Pradesh, and Uttarakhand, where growing infrastructure is making smaller towns more connected to metro cities. Towns in India such as Panipat, Sonipat, Rudrapur, Rishikesh, Ludhiana, and Kasauli have been identified for these upcoming residential developments.
Vipul Roongta, Managing Director and CEO of HDFC Capital, explained that the company sees great potential in tier 2 and 3 cities. The demand for housing is strong, but the supply of quality homes is limited. HDFC Capital’s goal is to bridge India’s housing gap by developing high-quality, sustainable, and affordable residential communities.
Eldeco Brings Experience in Smaller Townships
Eldeco Group, led by Chairman and Managing Director Pankaj Bajaj, has been building townships in tier 2 and tier 3 cities for years. With over 200 completed projects and 60 million square feet of delivered real estate, Eldeco has proven experience in creating large-scale housing in growing towns. This partnership with HDFC Capital will allow them to expand faster into high-potential markets in North India.
Bajaj said there is strong demand in small cities, but not enough supply. With HDFC Capital’s funding support, the two companies can address this gap and bring quality housing options to India’s expanding middle class.
Supporting Affordable Housing and Technology
HDFC Capital is aligned with the Government of India’s ‘Housing for All’ mission and is actively supporting the construction of affordable and mid-income homes. It also aims to introduce innovation and new technology in real estate by backing startups and technology companies.
The firm currently manages four SEBI-registered alternative investment funds, which together form a $4.2 billion platform. These funds are focused on boosting affordable housing development in India.
The collaboration between HDFC Capital and Eldeco Infrastructure & Properties Ltd (EIPL), the unlisted arm of Eldeco, marks a major step in boosting housing access in India’s next-generation cities.
