In a significant move to address the acute affordable and mid-income housing shortage in India, IFC and Sunteck Realty are partnering to create a joint platform with a total investment of up to INR 7,500 million (US$90 million) to promote the development of nearly 12,000 high-quality housing units across four to six green housing projects within the Mumbai Metropolitan Region (MMR) in the state of Maharashtra. IFC's proposed investment is for up to INR 3,300 million (US$40 million), with the remainder to be brought in by Sunteck Realty.
With a population exceeding 22 million, the MMR is India's largest and most active housing market, grappling with a significant housing deficit. In this context, the IFC-Sunteck Partnership is centered around the development of large-scale housing projects in the extended suburbs of Mumbai city to cater to the mid-income demographic. Sunteck Realty, with presence across market segments, has a strong focus on this population segment.
"We are pleased to collaborate with IFC in our shared goal of addressing the housing shortage in India,” said Kamal Khetan, CMD of Sunteck Realty. “Our wide range of offerings provide high quality amenities and enhanced lifestyles for all the segments of the population. This strategic partnership demonstrates our capability to develop high quality large-scale housing projects in the MMR and aligns with our vision of sustainable and green housing solutions."
"This investment aligns with our strategy to create more inclusive and equitable cities by backing affordable and eco-friendly housing through partnerships with reputed companies like Sunteck Realty,” said Wendy Werner, IFC Country Head, India. “It also supports the Government of India's 'Housing for All' initiative, delivering essential societal benefits including shelter, safety, job opportunities, wealth generation, and enhanced credit access."
In India, where homes use 30% of electricity and buildings create 20% of carbon emissions, the project aims to cut water and energy use of the housing developments under the platform by at least 20% with IFC’s EDGE (Excellence in Design for Greater Efficiencies) green building certification. As India's energy demand soars due to economic growth, urbanization, and population expansion, and with water stress projected to rise, the project’s resource-efficient units will lower not only utility costs but also environmental impact and GHG emissions.
Affordable and green housing remains a strategic focus area for IFC in India, having invested over $2.5 billion since 2013 in housing finance companies and developers in the country—$1.49 billion in the last five years—for on-lending to retail buyers of affordable housing and developers of affordable and green housing.