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The International Finance Corporation (IFC) has committed USD 150 million as an anchor investor in HDFC Capital's newly launched H-DREAM Fund, a USD 1 billion initiative targeting affordable and mid-income housing projects across India. The fund, managed by HDFC Capital Advisors, aims to support the construction of over 25,000 green-certified homes following EDGE standards. With this investment, IFC expects to mobilise an additional USD 850 million from global and domestic institutional investors. This move aligns with India's growing housing demand and contributes toward its estimated USD 1.4 trillion green buildings opportunity by 2030, with a strong focus on the residential sector.
The International Finance Corporation announced an anchor investment of USD 150 million in the H-DREAM Fund short for HDFC Capital Development of Real Estate Affordable and Mid-Income Fund. The fund is managed by HDFC Capital Advisors, a wholly owned subsidiary of HDFC Ltd. Advertisement
The H-DREAM Fund has a total target corpus of USD 1 billion, including a base size of USD 500 million and a green-shoe option for an additional USD 500 million. Its focus is to fund the development of affordable and mid-income housing projects in India that meet EDGE (Excellence in Design for Greater Efficiencies) green building certification standards.
The IFC stated that this initial investment is expected to mobilise up to USD 850 million in further capital from other global and domestic institutional investors. According to available details, HDFC Capital has already received in-principle commitments of around USD 350 million from institutional investors and family offices.
The fund aims to support the construction of over 25,000 climate-resilient and energy-efficient homes across Indian cities. These homes will primarily cater to first-time homebuyers in the affordable and mid-income segments.
The initiative comes at a time when the housing shortfall in urban India continues to widen, with around 18 million housing units required across Tier 1 and Tier 2 cities. More broadly, over 275 million people in the country are estimated to be living without adequate housing.
IFC noted that India's green buildings market presents a potential USD 1.4 trillion investment opportunity by 2030. Around 87% of this opportunity lies within the residential real estate segment, making it a key focus for future sustainable growth.
HDFC Capital stated that the H-DREAM Fund aims to create a strong positive social and environmental impact by improving access to housing while ensuring environmental sustainability through green construction practices.
The IFC also highlighted that the partnership will help developers improve energy efficiency in housing, support employment generation, and enhance overall urban living conditions. This collaboration is part of IFC's broader strategy to strengthen sustainable infrastructure financing in emerging markets.
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