HDFC Capital, the real estate private equity division of the HDFC Group, is set to invest ₹1,500 crore through a joint venture with the Eldeco Group to develop 18 residential projects across tier II and III cities in India. These developments will cover over 10 million square feet and have a “combined revenue potential of about ₹11,000 crore.”
The partnership is focused on addressing the growing housing demand in smaller urban centers like Panipat and Sonipat in Haryana, Ludhiana in Punjab, as well as select cities in Himachal Pradesh and Uttarakhand. “We will be infusing ₹1,500 crore in this joint platform with Eldeco Group,” said Vipul Roongta, Managing Director & CEO of HDFC Capital.
The partnership with Eldeco Group, facilitated through HDFC Capital Advisors Ltd, seeks to leverage the growth in infrastructure and proximity of these towns to major metropolitan areas. “This investment allows us to accelerate our expansion into high-growth markets that are increasingly being connected to India’s economic centres. There is a huge unmet demand for quality housing in tier-2 & 3 cities across India.” Pankaj Bajaj, Chairman & Managing Director of Eldeco Group, emphasised the importance of this venture, stating, “There is just not enough supply. In this platform with HDFC Capital, we will be able to address some of this demand in cities of North India,” Bajaj said.
HDFC Capital’s investment aligns with the Government of India’s ‘Housing for All’ initiative, focusing on affordable and mid-income homes. “We are bullish on the potential of tier-2 and tier-3 towns situated within a 300-km radius of major metropolitan areas. Our partnership with Eldeco aligns with our long-term vision of catalysing the development of sustainable aspirational housing for India’s expanding middle class,” said Roongta.
The collaboration highlights Eldeco’s proven expertise in executing similar projects, particularly in smaller towns. At the same time, HDFC Capital is looking to drive innovation in the real estate sector by leveraging technology-focused partnerships. “Eldeco has a successful track record of developing townships in tier-2 and 3 towns and we’re excited to partner with them,” Roongta added.
The strategic partnership between HDFC Capital and Eldeco Group marks a significant step toward addressing the growing demand for quality housing in India’s emerging tier II and III cities. With a ₹1,500 crore investment and a development pipeline spanning over 10 million square feet, the joint venture not only highlights Eldeco’s proven track record but also aligns with HDFC Capital’s vision of fostering innovation and sustainable growth in the real estate sector. As cities like Panipat, Sonipat, and Ludhiana continue to evolve, this collaboration is poised to make a meaningful impact on the urban housing landscape.
