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IFC and HDFC Capital Launch $1 Billion "H-DREAM" Fund to Advance Green Affordable Housing in India.

Banking & Finance | Dated: 08 Aug 2025

The International Finance Corporation (IFC) and HDFC Capital Advisors Limited have jointly launched the $1 billion "H-DREAM" (Housing Development and Eco-Friendly Affordable Market) Fund to accelerate the development of green and affordable housing in India, aiming to meet the country’s rising urban housing demand while promoting sustainability.

🎯 Key Highlights:

  • - The partnership focuses on creating a large-scale financing platform dedicated to supporting the construction of environmentally friendly homes that cater to low- and middle-income households. The fund aligns with India’s Pradhan Mantri Awas Yojana – Housing for All initiative and will provide long-term capital to developers committed to green-certified projects.
  • - This initiative will prioritize projects that adhere to recognized green building standards such as EDGE (Excellence in Design for Greater Efficiencies), IGBC (Indian Green Building Council), and GRIHA (Green Rating for Integrated Habitat Assessment), thereby reducing carbon emissions, water usage, and energy consumption.
  • - The aim is to promote climate-resilient housing infrastructure while keeping costs affordable for the targeted population segment.

💡 Other Important Facts:

  • (i) The $1 billion corpus will be financed through IFC’s investments, HDFC Capital’s Affordable Real Estate Fund (H-CARE), and other domestic and international institutional investors. The fund will operate as a blended finance model, combining concessional capital with market-rate investments to make housing projects more viable.
  • (ii) According to IFC, India faces an urban housing shortage of nearly 29 million units, with 95% of this demand coming from the affordable housing segment. By promoting green construction in this segment, the initiative is expected to have a dual impact—reducing India’s carbon footprint and meeting the urgent housing needs of its urban population in a sustainable manner.
  • (iii) The fund also reflects the growing collaboration between global financial institutions and Indian developers to address the twin challenges of climate change and urban housing. By leveraging IFC’s global expertise in sustainable finance and HDFC Capital’s deep market presence, the initiative is positioned to transform India’s housing landscape over the next decade.

📚 Test Your Knowledge:

What is the name of the $1 billion fund launched by IFC and HDFC Capital Advisors for green and affordable housing in India?

Correct Answer: H-DREAM Fund

🚀 Quick Recap: