CREDAI partners with HDFC Capital to facilitate investment of Rs 5,000-10,000 cr for housing in non-metros

The Confederation of Real Estate Developers' Associations of India (CREDAI) on November 11 announced a collaboration with HDFC Capital to facilitate an investment of Rs 5,000-10,000 crore for affordable housing in non-metro cities.

This announcement was made by CREDAI at the 'NATCON 2022' annual event held at YAS Island in Abu Dhabi.

The real estate developers' body stated that the investment will be done by HDFC Capital from its reserve of $3 billion (or around Rs 24,000 crore) fund for construction of housing in the country.

Commenting on the development, CREDAI president Harsh Vardhan Patodia said, “HDFC Capital has set around Rs 24,000 crore for investment in housing in the country, and our aim is to utilise the network over the country and penetrate investment of around Rs 5,000 to Rs 10,000 crore for tier-2 and tier-3 cities in the next few years."

Patodia added, "This investment will be done out of the over US $3 billion dollar set aside by the HDFC Capital. We are going to be the facilitator here of giving last mile connectivity to invest in housing in tier-2 and tier-3 cities."

According to CREDAI, HDFC Capital will give more details on the investment on November 12.

The association further noted that it anticipates a lot of scope in tier-2 cities like Lucknow, Jaipur, Ahmedabad, Indore, Bhubaneswar etc.

CREDAI, in a statement, also said that over 13,000 member developers have taken a pledge to become 100 percent carbon neutral by 2050.

With this pledge, CREDAI has become the industry’s first association to facilitate an ecosystem and lay a strong foundation for sustainable realty in India, it claimed.

It added that as India pledges to become a low-carbon economy, the real estate industry can partner with the government in extending its commitment significantly. Even though the Indian Green Building Council (IGBC) has implemented measures to promote more developers to use sustainable techniques, CREDAI will work with the policy implementation body to ensure the measures are well ingrained with the real estate developers in the country.

“We believe that our role as nation builders is to also contribute to people and planet alike. When the entire world is waking up to the need for Green Real Estate, as an industry leader, we need to walk the talk by evaluating and exploring newer ways to reduce, and reuse waste through recycling," Patodia said.

In another announcement, CREDAI said it is also partnering with India’s first and largest integrated incubator and accelerator for startups – Venture Catalysts & NeoVon – to set up a $100 million fund - ‘Spyre VC Proptech Fund’. The fund shall invest $100 million dollar fund in the next couple of years across early and growth stage start ups.

Boman Irani, President-Elect, CREDAI, said, “India is a start-up hub and a lot of new-age start-ups are finding solutions to real-world problems more swiftly and effectively. Our Sphyre VC fund will bring together a lot of young leaders who will help us in bringing Sustainable Realty to life.”