HDFC Shalimar launch ₹750 crore housing platform in UP

HDFC Capital Advisors and Shalimar Corp have launched a ₹750 crore platform aimed at building housing in Uttar Pradesh’s Lucknow, Varanasi and Kanpur.

Scope of the new platform

The partnership will fund several projects with a combined development potential of over 5 million square feet and roughly 3,000 homes. The focus is on aspirational housing, targeting buyers whose incomes are rising, and includes mixed-use components.

Specific sites within the three cities have not been disclosed yet. Details are expected to emerge when the first projects are launched.

Industry leaders outline growth drivers

Vipul Roongta, managing director and CEO of HDFC Capital, said emerging urban centres in Uttar Pradesh will drive the next phase of housing growth. He cited rising incomes, urbanisation and infrastructure development as the three main forces.

Shalimar Corp is scaling up its activity. It has launched projects worth ₹6,000 crore in the past three years and plans to start projects valued at ₹4,000 crore in FY27, using the new capital to sustain that pace.

The developer recently entered Varanasi, calling it a key growth market because of its increasing religious significance, expanding spiritual tourism and large-scale infrastructure investment.

Khalid Masood, managing director of Shalimar Corp, highlighted the company’s legacy of trust and excellence across residential townships, IT parks and mixed-use developments. He said the platform will help extend that record.

Background on HDFC Capital and its partnership model

Founded in 2016, HDFC Capital Advisors manages the HDFC Capital Affordable Real Estate Funds 1, 2 and 3, all registered with SEBI as Category II alternative investment funds. In 2022, HDFC Ltd sold a 10 percent stake in the firm to an affiliate of the Abu Dhabi Investment Authority for about ₹184 crore, valuing the business at over ₹1,840 crore.

The Shalimar tie-up follows a series of similar platforms. In April 2025, HDFC Capital created a ₹1,500 crore platform with the Eldeco Group for 18 residential projects across six cities, covering more than 10 million square feet. Earlier, it partnered with Curated Living Solutions on a ₹1,000 crore rental-housing platform and with Provident Housing on a ₹1,150 crore deal.

While the Shalimar platform is smaller than the Eldeco arrangement, it adds Uttar Pradesh to the list of states where HDFC Capital backs local developers, diversifying its geographic reach.

Why investors are looking beyond metros

Institutional money has traditionally favoured large metros, but improved roads, rail links and civic projects are making secondary cities more attractive. Urban populations in Lucknow, Varanasi and Kanpur are expanding, creating fresh demand for housing.

For developers, a platform like this provides long-term funding and a partner with deep local market knowledge. Access to approvals, land assembly and on-ground execution can make or break a project in these markets.

Analysts will watch three indicators to gauge success. First, the names and locations of the inaugural projects. Second, the launch schedule, especially in Varanasi where Shalimar has just entered. Third, how quickly the 3,000-home target moves from planning to possession.

Construction timelines and profit margins will be critical as the platform scales. If early projects are completed on schedule, the model could attract additional institutional capital to Uttar Pradesh.