HDFC Capital's $2 Billion Bet on Affordable Housing in India
HDFC Capital Advisors is set to invest over $2 billion in affordable and mid-income housing in India by 2025, aiming to ease supply-side limitations and fund one million homes.
Affordable HousingHdfc Capital AdvisorsReal Estate InvestmentAbu Dhabi Investment AuthorityIndias Housing ShortageReal Estate NewsJul 10, 2024
With the Abu Dhabi Investment Authority (ADIA) as a major investor, HDFC Capital Advisors is working towards its medium-term goal of funding one million affordable houses in India. The company has already established platforms with top developers and is committed to providing long-term, flexible financing throughout the lifecycle of affordable and mid-income housing projects.
According to Vipul Roongta, MD & CEO of HDFC Capital Advisors, this initiative represents a $500 billion business opportunity requiring investments of at least $100 billion from public, private markets, and debt sources. The fund aims to deploy a minimum of $1 billion annually over the next two years in affordable and mid-income housing across India's top 15 cities.
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, aligned with the Indian government's objective to boost housing supply. ADIA, with a 10% stake in HDFC Capital Advisors, is the primary investor in these funds.
The funds managed by HDFC Capital not only provide financing for affordable and mid-income housing projects but also invest in technology companies involved in the affordable housing ecosystem, such as construction technology, fin-tech, and clean-tech. The company's goal is to finance the development of one million affordable homes in India through innovative financing, strategic partnerships, and technology, all while prioritising sustainability.
With this investment, HDFC Capital Advisors is poised to make a significant impact on India's affordable housing sector, providing much-needed housing solutions to millions of Indians.
Frequently Asked Questions
What is HDFC Capital Advisors' investment goal for affordable housing in India?
HDFC Capital Advisors plans to invest over $2 billion in affordable and mid-income housing by the end of 2025.
What is the company's medium-term goal for affordable housing in India?
HDFC Capital Advisors aims to fund one million affordable houses in India through its platforms established with top developers.
How much does HDFC Capital Advisors plan to deploy annually in affordable and mid-income housing over the next two years?
The company aims to deploy a minimum of $1 billion annually over the next two years in affordable and mid-income housing across India's top 15 cities.
What is the size of HDFC Capital's funding platform?
HDFC Capital manages a $3.5 billion funding platform.
What is the primary focus of HDFC Capital's investment strategy?
The company's primary focus is on providing long-term, flexible financing throughout the lifecycle of affordable and mid-income housing projects, while prioritising sustainability.
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