Global Interest in India’s Affordable Housing

Summary

Vipul Roongta, CEO of HDFC Capital Advisors, discusses strong global investor interest in India's affordable and middle-income housing sector, citing demographic tailwinds, infrastructure development, and digital transformation. He highlights the supply-demand gap and the attractive risk-adjusted returns of senior secured private credit in housing. The firm aims to double its AUM from $4.5 billion to $9 billion in three years.

• Global investors are showing unprecedented interest in long-term Indian housing investments.
• HDFC Capital Advisors aims to double its AUM from $4.5B to $9B in three years.
• India has a 30 million unit housing shortfall, with annual supply of only 600,000 units.
• Urban housing demand is shifting to top 25 cities and regional hubs.
• Senior secured private credit in India yields 12-14% returns.
• Government support includes regulatory improvements and infrastructure spending.
• The main risks are counterparty and governance, but sector offers strong risk-adjusted returns.
• The firm focuses on small, high-quality urban homes in the $80,000-$200,000 range.