Uttar Pradesh's growing cities have a new source of funding for housing. HDFC Capital Advisors, the real estate private equity arm of HDFC Group, has created a ₹750 crore platform with Shalimar Corp. It will build residential and mixed-use projects in key markets across the state, including Lucknow, Varanasi and Kanpur.
What the platform covers
The platform will hold multiple projects. Together, they carry a development potential of more than 5 million square feet and about 3,000 homes. The focus is aspirational housing, meaning homes for buyers who are moving up as incomes rise. Because the projects are residential and mixed-use, they may combine housing with other uses.
The announcement does not yet name individual projects or locations within the three cities. Those details should come with the first launches.
What HDFC Capital said
Vipul Roongta, MD and CEO of HDFC Capital, said emerging urban centres in Uttar Pradesh are set to lead the next phase of housing growth. He named three drivers: rising incomes, urbanisation and infrastructure development. The platform is HDFC Capital's way of backing that growth in cities where demand is building.
Shalimar is already scaling up
The partnership comes as Shalimar Corp expands. The company has launched projects worth ₹6,000 crore in the last three years. In FY27, it plans to launch projects worth ₹4,000 crore. That is a steady rise in launch volume, and the new platform gives it fresh capital to keep that pace.
Shalimar recently entered Varanasi and has marked it as a key growth market. It cites three reasons: the city's rising religious significance, growing spiritual tourism and large-scale infrastructure investment.
Khalid Masood, MD of Shalimar Corp, said the company has built a legacy of trust and excellence over the years. That record covers residential townships, IT parks and mixed-use developments. He said the platform will help the company take that work forward.
Who is HDFC Capital
HDFC Capital Advisors was set up in 2016. It is the investment manager to HDFC Capital Affordable Real Estate Funds 1, 2 and 3. All three are registered with SEBI as Category II alternative investment funds.
In 2022, HDFC Ltd sold a 10 per cent stake in the firm to an affiliate of the Abu Dhabi Investment Authority for about ₹184 crore. The deal valued the business at over ₹1,840 crore.
A growing list of developer platforms
The Shalimar tie-up follows a pattern. HDFC Capital has been signing platform deals with regional developers.
In April 2025, it created a ₹1,500 crore platform with the Eldeco Group for 18 residential projects. Those projects span Panipat, Sonipat, Rudrapur, Rishikesh, Ludhiana and Kasauli, with over 10 million square feet of development. In January 2026, it joined Curated Living Solutions on a ₹1,000 crore rental housing platform. In April 2024, Provident Housing received ₹1,150 crore from HDFC Capital.
The Shalimar platform is smaller than the Eldeco one. But it adds Uttar Pradesh to the states where HDFC Capital is backing local developers.
Why smaller cities are drawing capital
For years, institutional money flowed mainly to the large metros. That is shifting. Cities like Lucknow, Varanasi and Kanpur are seeing better roads, rail links and civic projects, along with growing urban populations.
For developers, a platform like this brings long-term funding. For the investor, it brings a partner who knows the local market. Approvals, land assembly and on-ground execution can make or break a project in these cities. A developer with regional experience helps manage that risk.
What to watch next
Three things will show how the platform performs. First, the names and locations of the first projects. Second, the launch schedule, especially in Varanasi, where Shalimar is a recent entrant. Third, how quickly the 3,000-home target moves from plan to possession.
Construction timelines and margins will matter as the platform scales. If the first projects are delivered on time, more institutional capital could follow in Uttar Pradesh.
