HDFC Capital Invests ₹1,500 Cr in Eldeco’s Tier 2 & 3 Housing Projects
Published • 13 April 2025 at 2:50 PM
HDFC Capital Partners Eldeco for ₹1,500 Cr Housing Investment
HDFC Capital Advisors Ltd, the real estate private equity arm of HDFC Group, is investing ₹1,500 crore in a strategic partnership with Eldeco Group to launch 18 residential projects in India's tier II and III cities. With a combined development area of over 10 million sq ft, these projects are expected to generate a total revenue of ₹11,000 crore. This joint real estate development platform targets emerging cities like Panipat, Sonipat, Rudrapur, Ludhiana, Kasauli, and Rishikesh across states such as Haryana, Punjab, Himachal Pradesh, and Uttarakhand. The initiative aims to cater to the growing demand for quality housing in non-metro regions, driven by improving infrastructure and connectivity to economic hubs. HDFC Capital, aligned with the Indian government’s 'Housing for All' mission, is focused on affordable and mid-income housing. The firm recently partnered with Total Environment for ₹1,300 crore to develop ₹10,000 crore worth of housing in Bengaluru. Eldeco Infrastructure & Properties Ltd (EIPL), the unlisted arm of Eldeco Group, will develop these projects. Eldeco has a proven track record, having delivered over 200 projects covering more than 60 million sq ft. According to PropEquity, housing sales in 15 major tier-II cities grew by 20% in 2023, reaching ₹1.52 lakh crore—highlighting strong market potential. This platform will help bridge the urban-rural housing gap, foster regional development, and meet rising housing demand in smaller towns while encouraging sustainable and tech-enabled real estate growth.
Eldeco & HDFC Launch 18 Affordable Homes in India's Tier 2/3
- Investment Deal: HDFC Capital is investing ₹1,500 crore in partnership with Eldeco Group.
- Project Scope: The partnership will develop 18 residential projects across Tier II and III cities in India.
- Revenue Potential: The projects have a combined development area of over 10 million sq ft and are expected to generate ₹11,000 crore in revenue.
- Target Cities: Key locations include Panipat, Sonipat, Rudrapur, Ludhiana, Kasauli, and Rishikesh.
- States Covered: Projects will span across Haryana, Punjab, Himachal Pradesh, and Uttarakhand.
- Affordable Housing Focus: The initiative supports the Indian government’s 'Housing for All' mission by focusing on affordable and mid-income housing.
- Previous Investments: HDFC Capital recently invested ₹1,300 crore with Total Environment for housing projects worth ₹10,000 crore in Bengaluru.
- Developer Track Record: Eldeco Group, via its unlisted arm EIPL, has delivered over 200 projects, covering more than 60 million sq ft.
- Market Growth: Housing sales in 15 major Tier-II cities rose 20% in 2023 to ₹1.52 lakh crore, as per PropEquity data.
- Strategic Objectives: The platform aims to bridge the urban-rural housing gap, promote regional development, and boost sustainable, tech-driven real estate growth in smaller towns.
