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HDFC Capital Advisors has partnered with Eldeco Group to develop 18 housing projects across North India's tier-II and III cities, with an investment of INR 1,500 crore. Spanning over 1 crore sq ft, the projects target towns like Panipat, Ludhiana, Rudrapur, and Kasauli, and are expected to generate INR 11,000 crore in revenue. The platform aims to meet the growing demand for mid-income housing driven by improved connectivity and urbanisation. Eldeco's unlisted arm, EIPL, will spearhead execution, while HDFC Capital continues to back affordable housing through its INR 35,000 crore fund portfolio. This move reflects a strategic focus on India's rising non-metro real estate markets.
HDFC Capital Advisors, the real estate private equity arm of HDFC Group, has partnered with Eldeco Group to launch 18 new housing projects across tier-II and tier-III cities in North India. The platform will see an investment of INR 1,500 crore from HDFC Capital and will cover over 1 crore sq ft of residential development across states like Haryana, Punjab, Uttarakhand, and Himachal Pradesh. Advertisement
The total revenue potential from these projects is estimated at around INR 11,000 crore, making it one of the largest housing-focused platforms targeting smaller towns in the country.
The towns included in this partnership include Panipat, Sonipat, Ludhiana, Rudrapur, Rishikesh, and Kasauli-locations that are within a few hundred kilometers of major cities like Delhi and Chandigarh. HDFC Capital's Managing Director & CEO, Vipul Roongta, said the platform aims to tap into the 'huge unmet demand' for quality mid-income housing in these fast-growing towns.
He added that ongoing infrastructure improvements-such as highways, rail connectivity, and metro extensions-are bringing smaller towns closer to metros, boosting their appeal as housing markets.
Eldeco Group, led by CMD Pankaj Bajaj, is known for its strong presence in the North Indian housing market. The group has already delivered over 200 projects with more than 60 million sq ft of built space. Bajaj said this partnership with HDFC Capital will allow them to fast-track development in regions where housing demand is rising but supply remains limited.
The collaboration is through Eldeco Infrastructure & Properties Ltd (EIPL), the unlisted development arm of the group. Bajaj noted that many tier-II cities are seeing steady growth in housing sales, but the supply of organised, high-quality residential communities hasn't kept pace.
HDFC Capital manages four SEBI-registered Category II Alternative Investment Funds, with a total platform size of USD 4.2 billion (roughly INR 35,000 crore). These funds focus on affordable and mid-income housing and also support innovation in construction and real estate technology.
In March 2025, HDFC Capital also tied up with Bengaluru-based Total Environment to create another INR 1,300 crore platform, showing its steady commitment to residential real estate.
According to PropEquity data, 15 major tier-II cities saw housing sales grow by 20% in 2023, with total value rising from INR 1.27 lakh crore in 2022 to INR 1.52 lakh crore. Cities like Lucknow, Indore, Bhopal, and Nagpur have also emerged as real estate hotspots, thanks to improved infrastructure and rising urbanisation.
With rising demand in smaller cities and limited supply of organised housing, partnerships like the one between HDFC Capital and Eldeco could reshape the future of real estate in India's next wave of urban centres.
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