Sanand, Ahmedabad Affordable Housing Project


Amount Raised


Total Investors

Project Overview

The project is in Sanand City, a satellite urban centre of Ahmedabad, India’s fifth-largest city with a population of 5.6 million. This is a major government-sponsored industrial area that is home to international employers such as Tata Motors, Suzuki, Ford and Honda. The project will deliver much-needed climate-smart quality homes for low-income clients. A total of 817 homes will be constructed, in a mix of ‘compact’ and ‘standard’ 1- and 2-bedroom apartments.

The project will reduce inequalities by unlocking access to homes and financial services, particularly benefitting women, and the informal workforce. 12 units will incorporate additional design features for people with accessibility needs. The highly experienced developer will deploy innovative design and procurement processes to minimise environmental impact and improve local biodiversity. On-site infrastructure will maximise circularity including use of DEWATS (decentralised wastewater system). Offtake finance will be in the form of end-user financing, ensuring timely exit for investors.


  • Affordable Housing
  • Energy
  • Water & Sanitation
US$20.3 Million
Funding Goal
Asia and the Pacific


Reall, an innovator and investor in affordable housing across urban Africa and Asia, with a track record of over 30 years, addresses the housing deficit challenge by incubating green entrepreneurship, providing key contributions to Sustainable Development Goals (SDGs) and delivering life-changing opportunities for the bottom 40% of the income pyramid.

Project objectives:

  • Provision of 817 climate-smart affordable housing units to the bottom 40th percentile in Ahmedabad. India’s current housing deficit is 50M, this is projected to grow to 62M by the year 2030. The market size is expected to reach USD 750billion in 2030. This is a pioneering project, delivering climate-smart affordable homes that can provide a blueprint to address the growing housing deficit and unlock market potential while simultaneously mitigating carbon emissions and building urban resilience.
  • Showcase a mix of compact/standard 1 and 2 bedroom apartments, with four typologies available. These will be certified with the globally recognised green building standard EDGE which is supported by Green Building Certification Inc. and the International Finance Corporation (IFC). The EDGE tool helps developers plan how to reduce energy use, water use, and embodied energy of materials in the buildings they construct. The Ahmedabad affordable housing project will generate a reduction of energy consumption by 32% , water usage by 43% and result in 70% lower embodied energy in materials.
  • Provide a commercially viable model for delivering green affordable housing in urban India. Providing a proven blue-print for replication and scale-up to meet the escalating housing deficit with a climate-smart housing solution for the bottom 40% of the income pyramid.

Progress Tracker


  • Phase 1

    includes 230 units of 2BHK (2 Bedrooms, Hall, Kitchen) and 1BHK (1 Bedroom, Hall, Kitchen). Infrastructure development includes: eco-sewage treatment plant, water treatment plant, Rainwater harvesting, Solar water heater and lighting, Roads, Street lights, children play area and green space. Completion Dates - Nov-23

  • Phase 2

    Includes 216 units of 2BHK (2 Bedrooms, Hall, Kitchen) and 1BHK (1 Bedroom, Hall, Kitchen). Infrastructure development includes: eco-sewage treatment plant, water treatment plant, Rainwater harvesting, Solar water heater and lighting, Roads, Street lights, children play area and green space. Completion Dates - Jan-24

  • Phase 3

    Includes 224 units of 2BHK (2 Bedrooms, Hall, Kitchen) and 1BHK (1 Bedroom, Hall, Kitchen). Infrastructure development includes: Additional green/open area in addition to the facilities in phase 1 and 2. Completion Dates - Jun-24

  • Phase 4

    Includes 147 units of 2BHK (2 Bedrooms, Hall, Kitchen) and an additional Commercial space. Infrastructure development includes: All the infrastructure provided in the previous phases and retail units. Completion Dates - Nov-24

Current Stage

The project is currently in phase 1.


Phase Units Completion Dates
Phase 1 230 Nov-23
Phase 2 216 Jan-24
Phase 3 224 Jun-24
Phase 4 147 Nov-24
Total 817

Project Milestones

See above.

ESG Impact

There are very few projects in India that provide truly affordable homes for the bottom 40% of the income pyramid whilst also addressing the placemaking aspects that make housing actually liveable. The Ahmedabad Affordable Housing Project provides access to green space, communal facilities, considers the sustainability of the project from every perspective and understands the cost of living, facilities management requirements and building up-keep. The project also considers the necessity for disabled access and safe spaces for women, the need for green space and clean air for physical and mental wellbeing, while reducing the impact on climate, designing in renewable resources as well as reducing the carbon footprint of the build itself.

This is a flagship project, serving the needs of the bottom 40% to improve health, wellbeing and prosperity in an environmentally conscious, resilience-building and financially sustainable way. It is a distinct move away from the traditional ‘housing the poor’ with the least cost, which typically results in poor and unsustainable conditions, to a holistic, sustainable model for the future wellbeing of people and planet.  This represents a high-impact, investable proposition ripe for scaling and roll-out across cities and geographies. It provides a showcase development against the backdrop of rapid urbanisation, growing housing deficits and the critical need to bake in climate-smart growth.

From an environmental perspective, the IFC EDGE certification is achieved by making savings of at least 20% across energy usage, water usage, and embodied energy in the construction materials. This housing project will harness alternative materials, innovative green technologies, and renewable energy solutions to achieve the green building standards while demonstrating that housing can be affordable and a sound investment proposition.

Social infrastructure, retail and green public spaces are prioritised within the development or in the locality and help guarantee a resilient and vibrant community. This ensures people have access to employment, education and other facilities that improve life opportunities of low-income families.


Direct Beneficiaries – Circa 2,600 beneficiaries, with 74% below 40th income percentile and the remainder just above.

Indiresct Beneficiaries – Access for low-skill workers at all stages of the project.

SDG Goals

SDG 1: No PovertySDG 2: Zero HungerSDG 3: Good Health and Well-beingSDG 4: Quality EducationSDG 5: Gender EqualitySDG 6: Clean Water and SanitationSDG 7: Affordable and Clean EnergySDG 8: Decent Work and Economic GrowthSDG 9: Industry, Innovation and InfrastructureSDG 10: Reduced InequalitySDG 11: Sustainable Cities and CommunitiesSDG 12: Responsible Consumption and ProductionSDG 13: Climate ActionSDG 14: Life Below WaterSDG 15: Life on LandSDG 16: Peace and Justice Strong InstitutionsSDG 17: Partnerships to achieve the Goals


SDG 1: No Poverty – Affordable housing is an economic, social and cultural asset that empowers people to permanently escape the poverty cycle. In addition to the families who would get a home as a result of the project, it will also positively affect all workers involved in construction, logistics, maintenance and the employment generation throughout supply chains.

SDG 3: Good Health and Well-being – Decent and affordable homes with running water, clean energy and enough space are a frontline defence against the health and economic impacts of pandemics. This project will provide housing with all the necessary facilities creating a safe environment and improving the wellbeing of its residents, particularly women and children. Affordable education and healthcare facilities are available within 5 Km radius from the project and are anticipated to improve as the area develops.

SDG 5: Gender Equality – Provision of decent affordable housing and amenities empower girls to perform better at school, liberating women and girls from the burdens of water collection, reducing the risk of sexual and domestic violence, reducing time spent on domestic labour, and enhancing female social status and financial security.

SDG 6: Clean Water and Sanitation – Quality, sustainable water and sanitation will be provided for each home. DEWATS (decentralised waste water system) will be trialled.

SDG 7: Affordable and Clean Energy – The housing will be EDGE certified (expected savings to be achieved: Energy: 32%, Water: 43%, Materials: 70%), and project will have a significant solar energy generation capacity.

SDG 8: Decent Work and Economic Growth – There will be considerable low to high skilled jobs created throughout the construction process. Additionally, through the sourcing of materials, supplies and services, considerable economic multipliers will be unlocked.

SDG 9: Industry, Innovation and Infrastructure – The project uses innovative, climate-smart materials, design and social infrastructure that boosts resilience and advances sustainable economic development.

SDG 10: Reduced Inequality – Addressing housing deficits and delivering affordable homes at scale is a foothold into the formal economy to escape poverty and deprivation. The project will have around 2,600 beneficiaries of which 74% are below 40th income percentile.

SDG 11: Sustainable Cities and Communities – The project will provide safe, accessible, green and affordable housing, an essential infrastructure component for inclusive, sustainable and resilient cities.

SDG 13: Climate Action – The project harnesses alternative materials, innovative green technologies, and renewable energy solutions. The project will achieve the globally recognised EDGE green building certification. Additionally, the project will also ensure the usage of locally available and recycled materials for construction, reduced resource consumption and wastage, 50% of streetlights to be powered by solar panels and the practice of rainwater harvesting.


In development with CIF partners

Risks and Limitations

What are the key risks, constraints and dependencies related to the project?

Primary Risks

Risk 1: There is a risk that the overall project delivered over a longer construction timeline than originally planned. The risk is mitigated by ensuring realistic timeframe estimates based on previous project delivery experience and employing staff with extensive experience working with the local authority.

Risk 2: There is a risk that the overall cost of units will go up, should project costs rise and general contingency allowances be exhausted. Conservative cost allowances and contingencies have been included in the project modelling, based on past data and projections around material prices and delivery cost inflation. Our local partner has strong financial management systems and any risk that the project will run over budget will be identified and mitigated at an early stage. In addition, the forecast cost of most units is significantly below what would be affordable to the bottom 40%, and thus a marginal increase in unit cost would not push these units outside of Reall’s definition of affordable.

Risk 3: Prolonged construction process, negatively impacting cashflow. The risk is mitigated by drawing on previous experience to ensure realistic modelling, having quality delivery team and thorough planning process that takes account of externalities and allows for scenario-planning.

Risk mitigation and continuity

There is no government involved in the whole project. The dependency is only on various government agencies for obtaining necessary approvals.


Funding Goal

US$20.3 Million

Type of Investment


Financing Structure

Both feasibility and market study were undertaken. The project combines 3 different sources of finance:

Debt 33%
Equity 3% from developer
Housing unit pre-sales and household deposits 64%. Proceeds from Phase 1 will support completion of the project.

Secured Investment

Total USD 6.5M committed, of which USD 3.7 million invested to date (Reall investment).

Committed Government Funding

No funding from federal or State governments.

National and Subnational Investors


Committed Private Funding



Technical Support Required



Governmental Buy-in


Other Forms of Governmental Support


National Ministries Involved


SubNational Ministries Involved


Other Entities Involved


Licenses and Permits

  1. Project plan approval – AUDA (Ahmedabad Urban development Authority)
  2. Development Permission – AUDA
  3. CFO NOC – Ahmedabad Municipal corporation Fire and emergency service
  4. Civil Aviation: Airport authority of India
  5. Environment clearance – State level environment impact assessment authority Gujarat.
  6. Pending: Consent to Establish: This will be obtained in due course of time.


Supporting Documents

No supporting documents included.