HDFC Capital and Eldeco Create INR 1,500 Cr Platform for Tier 2 & 3 Housing Projects

HDFC Capital Advisors Limited, the real estate private equity arm of HDFC Group, has created a INR 1,500 crores platform in partnership with the Eldeco Group to develop 18 residential projects across multiple towns including Panipat (Haryana), Sonipat (Haryana), Rudrapur (Uttarakhand), Ludhiana (Punjab), Kasauli (Himachal Pradesh) and Rishikesh (Uttarakhand),  with total development area of more than 10 million square feet and combined revenue potential of about INR 11,000 crores. 

This platform underscores HDFC Capital’s continued commitment to bridging India’s housing gap through the development of high-quality residential communities, particularly in emerging tier 2 and 3 towns. 

Vipul Roongta, Managing Director & CEO, HDFC Capital, commented on the investment, stating, “We are bullish on the potential of tier 2 and tier 3 towns situated within a 300-kilometer radius of major metropolitan areas. Our partnership with Eldeco aligns with our long-term vision of catalyzing the development of sustainable aspirational housing for India’s expanding middle class. This collaboration is aimed at leveraging the growing infrastructure development in these regions which is bringing these towns closer to the metro cities and employment hubs. Eldeco has a successful track record of developing townships in tier 2 and 3 towns and we’re excited to partner with them.”

Pankaj Bajaj, Chairman & Managing Director, Eldeco Group, said, “We are happy to partner with HDFC Capital in our mission to develop vibrant, well-planned communities across India. This investment allows us to accelerate our expansion into high-growth markets that are increasingly being connected to India's economic centers. There is a huge unmet demand for quality housing in tier 2 & 3 cities across India. 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.”

This collaboration is part of HDFC Capital’s broader strategy to support the development of affordable and mid-income housing and marks another key milestone in its goal of addressing the housing needs across India’s growth corridors in tier 2 and tier 3 towns.

The platform with HDFC Capital is with Eldeco Infrastructure & Properties Ltd (EIPL), the unlisted arm of the Eldeco Group. Promoted by Pankaj Bajaj, the group also operates the listed Eldeco Housing & Industries Ltd in the Lucknow market under a brand license agreement with EIPL. 

About HDFC Capital Advisors Limited

HDFC Capital, a subsidiary of HDFC Bank Ltd, is the real estate private equity arm of HDFC Group. HDFC Capital is aligned with the Government of India’s ‘Housing for All’ initiative and is focused on financing the development of affordable and mid-income homes in a sustainable manner. HDFC Capital also seeks to promote innovation and the adoption of new technologies within the real estate sector by investing in and partnering with technology companies.

HDFC Capital is the investment manager to four SEBI-registered Category II Alternative Investment Funds. These funds combine to create a US$ 4.2 billion platform targeting the development of affordable and mid-income housing in India.

About Eldeco Group

Eldeco Group, promoted by Pankaj Bajaj, is one of North India’s leading real estate developers. Apart from its presence in NCR, the Group was one of the early movers in tier 2 & tier 3 cities of North India. The Group operates in Lucknow through the listed entity Eldeco Housing & Industries Limited (EHIL) and in the rest of India through the privately held Eldeco Infrastructure & Properties Limited (EIPL). Eldeco Group has delivered more than 200 projects with an aggregate delivered area of more than 60 million square feet. Apart from Lucknow, Eldeco is a leading real estate developer in most key cities of North India, such as Kanpur, Delhi, Noida, Greater Noida, Gurugram, Panipat, Sonipat, Ludhiana, Rudrapur, Bareilly, Panchkula, Neemrana, Sitarganj, Jhansi, and Jalandhar.