New Delhi: In a major relief for homebuyers, Union Finance Minister Nirmala Sitharaman has announced a ₹15,000 crore second tranche under the Special Window for Affordable and Mid-Income Housing (SWAMIH) Fund. This allocation aims to facilitate the completion of one lakh stalled housing units across the country.
A Long-Awaited Move for the Real Estate Sector
For years, real estate developers and industry bodies have been advocating for additional funding under the SWAMIH Fund. In 2024, the National Real Estate Development Council (NAREDCO) urged the Ministry of Finance to introduce a second tranche to revive stuck housing projects. The announcement in Budget 2025 has been widely welcomed by market experts, who believe it will rejuvenate stalled projects and restore buyer confidence.
What is the SWAMIH Fund?
The SWAMIH Fund was launched in 2019 as a last-resort debt financing solution for stalled and stressed residential projects. Funded by the Ministry of Finance and managed by SBICAP Ventures Ltd (a State Bank of India Group company), the fund prioritizes the completion of:
RERA-registered affordable and mid-income housing projects
Brownfield projects facing financial distress
Projects stalled due to liquidity crises or legal disputes
Under its first tranche, ₹15,500 crore was allocated to finance stalled projects, ensuring their completion and handover to homebuyers.
The Scale of Stalled Projects in India
According to PropEquity data (August 2024), 1,981 real estate projects comprising 5.08 lakh units across 42 cities remain stalled.
Tier I Cities (4.31 lakh stalled units across 1,636 projects)
Greater Noida: 74,645 stalled units
Thane: 57,520 stalled units
Gurugram: 52,509 stalled units
Noida: 41,438 stalled units
Bengaluru: 39,908 stalled units
Mumbai: 37,883 stalled units
Tier II Cities (76,256 stalled units across 345 projects)
Bhiwadi: 13,393 stalled units
Lucknow: 13,024 stalled units
Jaipur: 9,862 stalled units
Bhopal: 7,500 stalled units
Coimbatore: 4,808 stalled units
Nagpur: 4,140 stalled units
Delhi-NCR alone accounts for 44 percent of all stalled units in Tier I cities, with 1.92 lakh units across 495 projects remaining incomplete.
How Will SWAMIH Fund 2.0 Benefit Homebuyers?
Finance Minister Nirmala Sitharaman, in her Budget 2025 speech, highlighted the impact of the first tranche:
50,000 housing units in stalled projects have been completed and handed over to homebuyers.
An additional 40,000 units are expected to be completed by 2025.
This move will ease the financial burden on homebuyers, many of whom are paying both EMIs and rent.
One of the most notable success stories of the SWAMIH Fund is its intervention in six stalled projects of the Amrapali Group. In August 2021, the fund committed ₹650 crore, enabling the delivery of 6,950 homes. This boosted confidence in the real estate sector, prompting additional investment of ₹1,500 crore from a consortium of financial institutions to revive other projects.
Industry Leaders Applaud the Move
Sunil Sisodiya, Founder, Geetanjali Homestate:
"The first tranche of the SWAMIH Fund has been instrumental in reviving stalled residential projects, particularly in the affordable and mid-income segments. With the second tranche, we expect even greater momentum, restoring confidence among buyers and developers."
Samir Jasuja, CEO, PropEquity:
"The SWAMIH Fund ensures the completion of RERA-registered, net worth-positive projects that only require last-mile funding. To expedite home deliveries, the government should involve reputed developers, facilitate faster approvals, and provide subsidized financing."
Dhruv Agarwala, CEO, Housing.com & PropTiger.com:
"The renewed ₹15,000 crore funding will play a crucial role in completing one lakh housing units. This initiative is a major step in resolving liquidity challenges and rebuilding buyer confidence."
Shrinivas Rao, CEO, Vestian:
"Alongside SWAMIH 2.0, initiatives such as digitization of land records will further strengthen transparency and trust in the real estate sector."
A Step Towards Stability in the Housing Market
The SWAMIH Fund 2.0 serves as a critical policy intervention in India’s real estate sector. By addressing liquidity issues and expediting project completion, the initiative is set to:
Boost homebuyer confidence
Increase housing supply in key markets
Strengthen economic activity in real estate and allied sectors