DivyaSree Developers, HDFC Capital partner to set up ₹1,500 crore residential platform
BENGALURU: DivyaSree Developers is stepping up its residential ambitions with a ₹1,500 crore platform alongside HDFC Capital Advisors Ltd, seeking to build a ₹6,750 crore development pipeline over the next three to four years as the commercial property developer looks to diversify its business.
The platform, set up with the real estate private equity arm of the HDFC Group, will provide growth capital for acquiring and developing residential projects across multiple cities. The partnership is expected to strengthen DivyaSree’s residential pipeline and help it tap opportunities in key property markets.
“DivyaSree’s residential business is at an inflection point. This platform gives us the growth capital and momentum to move faster on that plan. Going forward, while commercial will remain the largest business in the foreseeable future, residential is likely to be the fastest growing for the company,” Avinash Suresh, chief executive – residential real estate, DivyaSree Developers, said in an interview.
The company plans to build its residential portfolio initially in Bengaluru, Hyderabad and Chennai, before expanding into other high-growth urban markets such as Mumbai.
“Our vision is to build a residential portfolio in the cities where demand is strongest, starting with Bengaluru, Hyderabad and Chennai and expand to high-growth urban markets such as Mumbai. Our existing land bank coupled with the acquisitions under the platform will help us build a steady pipeline of launches over the next three to four years,” Suresh added.
The partners did not disclose their respective shareholding in the platform. They have already entered into two term sheets for individual residential projects, which are expected to be finalised over the next two to three months. The projects will be announced separately thereafter.
DivyaSree has a diversified portfolio spanning commercial, residential, hospitality and co-living assets. The developer has delivered around 30 million sq. ft of real estate and is looking to expand its portfolio to nearly 56 million sq. ft.
Vipul Roongta, managing director and chief executive of HDFC Capital, said India's residential real estate sector continues to offer opportunities for institutionally backed development, supported by sustained demand for high-quality housing across urban markets.
“DivyaSree Developers brings a strong track record in real estate development, deep market understanding and a commitment to quality execution. Through this partnership, we aim to support the creation of a scalable pipeline of residential projects that delivers long-term value for home buyers and all stakeholders,” Roongta added.
HDFC Capital manages more than $5 billion across multiple alternative investment funds focused on affordable and mid-income housing. It has also been expanding into adjacent residential segments, including senior living, student housing and industrial worker housing.
“Residential has long been part of DivyaSree's vision, and we are now in a phase where every part of the business is set for its next stage of growth. This partnership with HDFC Capital reflects that ambition and the confidence in the growth we have planned for DivyaSree in the years ahead," Bhaskar N Raju, chairman and chief executive of DivyaSree Developers, said.
The partnership comes amid a shift in the sources of private equity funding for Indian real estate. Investments across asset classes, including office, residential and warehousing, fell 31% year-on-year to $1.66 billion in the January-September period of 2026, even as the number of transactions rose to 31 from 24, according to property advisory Knight Frank India.
Domestic investors accounted for 85% of total investments during the period, up from 25% a year earlier, reversing the historical dominance of foreign capital.