By AI Powered PMC Akbar Jiwani, Special Correspondent: Real Estate for Realnewsofindia.com
Government’s ₹15,000-Crore SWAMIH Fund II Set to Rescue 1 Lakh Stalled Homes, Reinforcing India’s Real Estate Recovery
NEW DELHI, September 4, 2026: In one of the most consequential government interventions for India’s real estate sector in recent years, the Centre’s SWAMIH Investment Fund II — backed by a ₹15,000 crore corpus — is progressing toward full rollout with a mandate to complete construction on nearly 1 lakh (100,000) housing units stuck in stalled, RERA-registered projects across the country. The initiative, first unveiled in the Union Budget, is being positioned by policymakers and industry leaders alike as a decisive step in restoring stalled-housing confidence and sustaining the momentum behind India’s broader real estate growth story.
What the Fund Does
SWAMIH Fund II follows the “last-mile financing” model pioneered by its predecessor: rather than funding new construction, it provides priority debt financing to complete projects where homebuyers have already paid substantial sums but face indefinite delays due to funding shortfalls, legal entanglements, or execution hurdles. Eligible projects must be registered under the Real Estate (Regulation and Development) Act (RERA) and fall largely within the affordable and mid-income housing segments — the categories where stalled inventory has hit homebuyers hardest.
Finance Minister Nirmala Sitharaman informed Parliament that the fund “is being set up to support completion of stalled housing projects” and confirmed it is “in the process of being formally launched” following extensive consultations with public sector banks, private lenders and institutional investors. The fund follows a blended-finance structure, drawing capital from the central government alongside contributions from banks and financial institutions including the State Bank of India, Life Insurance Corporation of India, Canara Bank, HDFC Bank and other major lenders, who were brought into the design process specifically to shape the fund’s structure and eligibility criteria based on lessons learnt from the original scheme. SBICAP Ventures Ltd, which has managed the programme since its inception, continues as fund manager.
A Track Record to Build On
The credibility of SWAMIH Fund II rests heavily on the demonstrated success of SWAMIH Fund I, launched in November 2019 as India’s largest real estate stress fund. As of the most recent disclosures, Fund I has secured a corpus of ₹15,530 crore, committed investments across 148 projects, and built a portfolio spanning 1,01,443 homes nationwide — of which more than 63,200 units have already been completed and handed over to long-waiting homebuyers, with thousands more slated for delivery this year.
Industry voices have welcomed the sequel fund enthusiastically. Niranjan Hiranandani, Chairman of NAREDCO, noted that “SWAMIH Fund One was very successful, and a large number of projects were started or had been cleared by that scheme,” adding that Fund II’s ₹15,000 crore central government contribution “will be further strengthened by contributions from banks and financial institutions” — a structure he believes will materially deepen its impact on the ground.
Why It Matters for India’s Real Estate Growth
Stalled housing projects have long represented one of the most persistent drags on confidence in Indian real estate, tying up homebuyer savings for years and denting sentiment in the very affordable and mid-income segments the government has prioritised under its housing-for-all agenda. By targeting last-mile completion rather than fresh construction, SWAMIH Fund II is designed to convert dead capital into delivered homes relatively quickly, unlocking both immediate relief for distressed homebuyers and a fresh wave of completed inventory that feeds directly into the sector’s overall growth numbers.
Coming on the heels of strong state-level momentum — including record project registrations and investment surges reported recently out of Uttar Pradesh and Maharashtra — the fund underscores a broader pattern in 2026: a real estate sector being propelled not just by fresh private investment, but by sustained, targeted government intervention aimed at fixing structural bottlenecks. As the formal rollout of Fund II proceeds, the coming months will be watched closely for the first tranche of project approvals and the pace at which stalled units convert into keys handed over to India’s homebuyers.
This article is written by AI Powered PMC Akbar Jiwani, Special Correspondent: Real Estate for Realnewsofindia.com
