Additionally, the loan framework will set stringent benchmarks for green buildings, thereby helping HDFC foster a quality green housing pipeline by channeling funds into this segment. IFC’s financing package aims to enable HDFC to further lend to individuals to ensure that they can afford such housing.
“Given our long-standing partnership, we welcome IFC’s expertise to help strengthen our green affordable housing Renu Sood Karnad, Managing Director, HDFC said, “Loan portfolio”. “We are keen to grow our footprint in affordable and green housing finance and are committed to supporting India’s efforts towards a sustainable and green low-carbon economy.”
According to him, this timely investment will help in boosting HDFC’s efforts to address the needs of the underprivileged sections of the population, promote economic resilience and support the government’s vision of Housing for All. It is estimated that 275 million people in India, about 22% of the total population, do not have access to adequate housing, and the housing shortage in rural areas is twice that of urban areas. As of 2018, the urban housing shortage stood at 29 million units, an increase of over 54% since 2012. Despite demand, India’s mortgage market remains under-penetrated, reflecting the largely unmet demand for housing finance.
Hector Gomez Ang, Regional Director for South Asia at IFC, said, “With the growing need for affordable housing and a largely underserved market, IFC’s investment in HDFC will underline the fact that lending for affordable housing is viable, catalyzes the market segment.”
According to him, it is important that new buildings and homes in the country are designed to be green and energy efficient in order to ensure sustainable development.
Residential housing accounts for about 24% of India’s electricity consumption. Given its climate commitments under the Paris Agreement and the COP 27 summit, a green affordable housing sector is key to reducing the country’s greenhouse gas (GHG) emissions through reduced household energy consumption and green construction activities.
Since 2010, IFC has invested more than $1.7 billion in housing finance companies in India for onlending to retail buyers of affordable housing and developers of affordable and green housing.
This year, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries grappling with the effects of global compounding crises to end extreme poverty and promote shared prosperity by leveraging the power of the private sector Is.
A green building, or sustainable design, is the practice of increasing the efficiency with which buildings and their sites use energy, water and materials, and for the entire life cycle of a building in order to reduce the impact on human health and the environment.