HDFC Capital to invest $2 billion in affordable housing segment by 2025 end

HDFC Capital Advisors is betting big on affordable and mid-income housing withs plans to invest more than $2 billion in this segment across India's top property markets by the end of 2025 to support easing od supply side constraints, said a top company executive. The world's largest affordable housing platform that counts Abu Dhabi Investment Authority (ADIA) as its key investor is in the process of achieving its medium-term goal of financing 1 million affordable homes in India through existing platforms set up with leading developers. The government has just announced support for 3 crore affordable houses including 1 crore homes in urbans areas. This is a $500 billion business opportunity and would need investment of at least $100 billion The fund is looking to deploy at least $1 billion annually over the next two years in affordable and mid-income housing across top 15 indian cities including Mumbai region, Delhi-NCR, Bengaluru, Pune, Hyderabad, Chennai, Kolkata, and Ahmedabad, he said. India has entered a period of demographic dividend which is expected to continue for the next 30 years. The purchasing power of India is going to lead to a consumption boom as more than 200 million households will form part of the upper middle class and above category by 2030. In HDFC Capital’s portfolio, unit ticket prices start from Rs 12.50 lakh and around 40% of its portfolio comprises units priced at less than Rs 42 lakh. It has so far invested across over 175 projects, helping develop over 250,000 units. HDFC Capital’s target is to finance the development of one million affordable homes in India through a combination of innovative financing, partnerships, and technology, whilst focusing on sustainability.
 

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