SWAMIH Fund 2.0

February 4, 2025

The SWAMIH Fund 2.0 has been introduced to address the challenges in India’s real estate sector. The Union Finance Minister announced a budgetary provision of ₹15,000 crore to aid the completion of one lakh dwelling units. This move aims to revive numerous housing projects that have faced delays due to financial constraints. The real estate sector has been under pressure from unsold inventory and changing consumer preferences.

What is the SWAMIH Fund?

The SWAMIH Fund, established in 2019, is a government initiative aimed at providing debt financing for stressed residential properties.
It is managed by SBICAP Ventures Ltd, part of the State Bank Group.
The fund serves as a last resort for developers facing financial difficulties.
It assists projects that are stuck due to litigation or poor performance records.

Funding and Impact

The first tranche of the SWAMIH Fund raised approximately ₹15,500 crore.
This funding prioritises debt financing for RERA-registered residential projects in the affordable and mid-income categories.
These projects are net worth positive but require last-mile funding.
The fund has facilitated the completion of over 50,000 dwelling units, with an additional 40,000 units expected in 2025.

Stalled Housing Projects in India

As of August 2024, around 1,981 real estate projects are stalled, totalling over 5.08 lakh units across 42 cities.
Greater Noida has the highest number of stalled units in Tier I cities, followed by Thane and Gurugram. In Tier II cities, Bhiwadi leads in stalled units.
Notably, Delhi-NCR accounts for 44% of the stalled units in Tier I cities, with approximately 1.92 lakh stalled units across 495 projects.

Benefits for Homebuyers

The SWAMIH Fund aims to provide relief to homebuyers who are struggling with EMIs while also paying rent.
Successful projects, such as those by the Amrapali Group, have demonstrated the fund’s effectiveness.
The completion of stalled projects not only benefits homebuyers but also stimulates economic activity in the housing sector.

Future Prospects and Challenges

With the introduction of SWAMIH Fund 2.0, there is optimism for further momentum in the real estate market. Experts suggest that engaging reputable developers could expedite project completion. The fund’s allocation will address liquidity issues and restore confidence among buyers and developers alike.

Government Initiatives

The government is also focusing on digitising land records to enhance transparency and strengthen buyer confidence. This initiative, combined with the SWAMIH Fund, is expected to improve the overall health of the real estate sector.

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