New Delhi To Launch SWAMIH Two Fund Completing One Lakh Stalled Homes

The Union government is preparing to roll out the SWAMIH-2 Fund, a successor to its stress financing programme for housing, aiming to complete nearly one lakh homes stuck in stalled residential projects across India. The move is expected to bring long-awaited relief to thousands of middle-income families caught between unfinished homes and ongoing loan repayments, while also stabilising a crucial segment of the urban real estate market.

According to officials familiar with the process, the contours of the SWAMIH-2 Fund are in the final stages of approval, with operationalisation expected soon. The proposed fund size of ₹15,000 crore is designed to provide last-mile financing to projects that are otherwise viable but unable to reach completion due to liquidity constraints. In the Union Budget 2025–26, the government has already earmarked ₹1,500 crore as seed capital, signalling strong policy intent to revive stalled housing supply. The original Special Window for Affordable and Mid-Income Housing, launched in 2019, marked a significant intervention in India’s distressed real estate sector. Structured as an Alternative Investment Fund and managed by a public-sector-backed investment arm, it was conceived as a lender of last resort for projects abandoned due to financial stress, regulatory hurdles or weak developer balance sheets. Since its inception, the fund has enabled the completion of more than 55,000 homes and is expected to deliver another 30,000 units over the next few years.

Industry experts note that SWAMIH-2 is likely to build on this framework, focusing on brownfield, RERA-registered projects catering to affordable and mid-income buyers. “Last-mile funding has a disproportionately high social impact,” said a real estate policy expert. “Completing an existing project consumes fewer resources than launching new developments and prevents further urban sprawl.” The scale of the problem remains significant. A sectoral study commissioned earlier estimated that over 1,500 housing projects involving more than 4.5 lakh units were stalled nationwide, requiring funding of around ₹55,000 crore to reach completion. Many of these projects are located in major urban regions, where housing shortages, long commutes and rising rents already strain city sustainability.

Urban economists argue that reviving stalled housing aligns with broader goals of inclusive and climate-conscious city building. Completing partially built homes reduces material waste, lowers embedded carbon emissions, and brings residents closer to employment hubs, supporting more compact and equitable urban growth. For homebuyers, it restores trust in formal housing markets and regulatory systems. As India’s cities continue to expand, the success of SWAMIH-2 will be closely watched. If executed effectively, the fund could not only unlock frozen capital and homes but also reinforce a development model that prioritises completion, accountability and social equity over unchecked expansion.

New Delhi To Launch SWAMIH Two Fund Completing One Lakh Stalled Homes