Housing Development Finance Corporation (HDFC) chairman Deepak Parekh has said that commercial real estate is growing very well. He said that at a time when no one is buying residential houses, commercial real estate also has a bright future. In an interview to a business TV channel, he said that there is a good boom in commercial real estate. He said that especially the IT back-office sector and no one seems to see sluggishness in it.

Parekh said the rise of urbanization, rapid migration and increasing population of youth in metro cities have increased the demand for commercial realty. Parekh said there are buyers like Sovereign Wealth Funds and Private Equity Funds, who are eager to invest in office realty.

Parekh quoted about affordable housing, that we are also seeing a big growth in affordable housing. To meet the demand of affordable housing, HDFC has set up HDFC Capital Affordable Real Estate-2 (H-CARE 2). The Government-run National Investment and Infrastructure Fund of India (NIIF) has invested 660 crore in H-CARE 2.

About half a dozen projects have been launched across the country in the last three months under this fund. The cities where the projects have been launched include Noida, Gurugram, Pune, Mumbai and Bengaluru.