Government Readies SWAMIH-2 Fund to Revive Stalled Housing Projects

• Rs 15,000 Crore SWAMIH-2 fund in the final stage, with the government completing approvals to restart stalled housing projects
• Aims to help nearly 1 lakh middle-class homebuyers by enabling completion of delayed, yet viable, residential developments
• Rs 1,500 Crore seed capital allocated in Budget FY26, signaling strong government support for real estate revival and buyer relief

The central government is close to launching the SWAMIH-2 Fund, Rs 15,000 crore initiative designed to revive stalled housing projects and bring relief to nearly 100,000 middle-class homebuyers across India. The move builds on the success of the first SWAMIH fund, which has already helped complete 55,000 homes.

In the Union Budget 2025-26, the government earmarked Rs 1,500 crore as seed capital for the new fund. Like its predecessor, SWAMIH-2 will provide last-mile financing to residential projects that are stuck but remain commercially viable. The focus is on helping buyers who continue to pay EMIs despite delays in possession due to halted construction.

SWAMIH was first introduced in November 2019 as a stress-resolution fund for the real estate sector. It operates as an Alternative Investment Fund (AIF) and is managed by SBI Ventures, with the economic affairs secretary acting as the sponsor. The fund primarily supports RERA-registered affordable and mid-income housing projects.

The existing SWAMIH Fund-1 has raised Rs 15,530 crore so far and plans to complete another 30,000 homes over the next three to four years. The fund is known for its unique role as a last-resort lender, backing projects from a wide range of developers, including first-time builders, firms with weak track records, and even projects facing legal disputes.

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The need for such intervention remains strong. A 2019 PropEquity study, cited by PTI, found that around 1,500 projects involving 4.58 lakh housing units were stalled or stressed, requiring nearly Rs 55,000 crore to complete.

The government is currently finalizing the structure and operational details of SWAMIH-2. Once approved, the fund is expected to play a key role in restoring buyer confidence and unlocking long-delayed housing supply nationwide.