SWAMIH Fund Helps in Completion of 28,000 Homes Since 2019

April 9, 2024

The Special Window for Affordable and Mid-Income Housing (SWAMIH) Fund, backed by the central government, has played a crucial role in the completion of over 28,000 homes since its inception in 2019. The fund, managed by SBICap Ventures Ltd, has also contributed to the growth of various ancillary industries in the real estate and infrastructure sector.

Recent Context

The real estate sector in India has been grappling with challenges such as liquidity crunch, project delays, and stalled projects. The SWAMIH Fund was created to provide last-mile funding to stalled housing projects, with the aim of reviving the sector and ensuring timely delivery of homes to buyers.

Impact on Home Completions

According to the National Real Estate Development Council (NAREDCO), the SWAMIH Fund has successfully helped in the completion of over 28,000 homes across various projects since its inception in 2019. The fund has provided much-needed financial support to developers, enabling them to complete stalled projects and deliver homes to buyers.

Projected Delivery of 60,000 Homes

The SWAMIH Fund is projected to facilitate the delivery of another 60,000 homes over the next three years. This projection highlights the fund’s continued commitment to supporting the real estate sector and ensuring that more homebuyers receive possession of their properties in a timely manner.

Unlocking Liquidity in Ancillary Industries

The SWAMIH Fund has not only helped in the completion of homes but has also played a critical role in the growth of various ancillary industries in the real estate and infrastructure sector. According to NAREDCO, the fund has successfully unlocked liquidity of more than ₹35,000 crore in these industries.

The ancillary industries that have benefited from the SWAMIH Fund include construction materials, cement, steel, and other related sectors. The infusion of liquidity has helped these industries to sustain their operations, maintain employment, and contribute to the overall growth of the economy.

Reduction in Housing Inventory Overhang

A joint report by property consultant Anarock and industry body NAREDCO has found that the housing inventory overhang has seen a significant drop over the last 10 years. The pan-India housing inventory overhang stood at 15 months at the end of 2023, a substantial reduction from the peak of 41 months in 2017.

The reduction in housing inventory overhang can be attributed to various factors, including the SWAMIH Fund’s support in completing stalled projects and the increased demand for housing in the post-pandemic period.

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