Real Estate: If you, too, have saved your hard-earned money for years to buy your dream home, but your flat remains incomplete due to builder negligence or lack of funds, then this initiative by the central government could be a new ray of hope for you. The government is preparing to finalize the framework for the SWAMIH-2 fund to revive stalled housing projects.
According to sources, this new fund will specifically focus on projects that have been incomplete for years due to financial difficulties and where homebuyers are forced to live in rented accommodations despite paying EMIs.
Relief Expected for Over One Lakh Buyers
The proposed SWAMIH-2 fund has a total size of approximately ₹15,000 crore. This could pave the way for over one lakh middle-class families across the country to finally get their homes. The government has already allocated an initial capital of ₹1,500 crore in the Budget 2025-26 for a special window related to affordable and middle-income housing for this purpose.
This fund will prioritize projects that are commercially viable but stalled due to a lack of last-mile funding. This is expected to alleviate the liquidity crunch in the real estate sector and improve the investment climate.
How SWAMIH-2 Will Revive Incomplete Projects
According to government sources, the mandate for the SWAMIH-2 fund is being finalized and is expected to receive formal approval soon. Under this fund, last-mile funding will be provided to housing projects where construction is almost complete, but work has stalled due to a lack of funds.
The aim of this initiative is not only to complete construction but also to restore homebuyers’ confidence and attract renewed investment in long-stalled projects.
Background and Success Story of SWAMIH Fund-1
The central government launched the first SWAMIH fund in November 2019. It was established as an alternative investment fund, aimed at providing priority financing to distressed and stalled residential projects. The responsibility for managing this special window’s investments was entrusted to SBI Ventures.
Under the SWAMIH Fund-1, more than 55,000 residential units have been completed so far. Additionally, the goal is to complete approximately 30,000 more homes in the next three to four years. The fund is currently managed by a team of about 30 experienced investment professionals.
How many projects have received support?
The SWAMIH Fund-1 has raised ₹15,530 crore to date. This fund invests in affordable and mid-income housing projects that are registered with RERA and require priority financing for completion.
Importantly, this fund considers new developers, established builders with distressed projects, projects associated with NPA accounts, and even projects embroiled in legal disputes. This is why it is seen as a last resort for stalled projects.
The serious situation of stalled housing projects in India
According to a study conducted by SBI Ventures in 2019, approximately 1,500 housing projects across the country were either completely or partially stalled. These projects comprised about 4.58 lakh residential units. It was estimated that approximately ₹55,000 crore in funding was needed to complete them. The SWAMIH-2 fund is seen as a solution to this significant problem, which will not only strengthen the real estate sector but also fulfill the dream of homeownership for millions of families.