Stalled hsg projects far exceed SWAMIH target

Approximately 86,000 housing units have been stalled in the past two years alone, a bulk of them in the Mumbai Metropolitan Region (MMR), shows data from Liases Foras

Mumbai: Although the 2025-26 union budget has allocated ₹15,000 crore towards completion of 100,000 stalled affordable housing units across the country under the aegis of SWAMIH (Special Window for Affordable and Mid-Income Housing) Fund 2.0, the actual quantum of stalled housing units is far higher, according to data collated by real estate research and rating agency Liases Foras.

Stalled realty projects (Hindustan Times)

Approximately 86,000 housing units have been stalled in the past two years alone, a bulk of them in the Mumbai Metropolitan Region (MMR), shows data from Liases Foras, shared exclusively with Hindustan Times.

“Around 96% of these stalled apartments are priced below ₹2 crore,” Pankaj Kapoor, managing director, Liases Foras, told HT.

Data from Gurugram-based real estate platform PropEquity paints a more grim picture. As of August 2024, over 500,000 housing units across 42 cities were stalled, among which 95,403 units were located in the MMR, the data shows.

Realty experts welcomed the allocation of ₹15,000 for the SWAHIM Fund 2.0, but signalled that more concerted efforts were required to address spate of stalled projects across the country.

Tiding over the pandemic

The first instalment of the SWAMIH Fund – launched in 2019, months before the COVID-19 pandemic hit India – helped kickstart work on approximately 90,000 affordable housing units, according to official data.

“The situation in the real estate sector has been grim since the pandemic,” an analyst told HT on condition of anonymity. “Had the government not introduced relief through the SWAMIH Fund in 2019, the real estate industry would have become like a critical patient by now, needing life support in a hospital.”

The 2019 SWAMIH fund, managed by SBI Capital Markets Limited, had raised ₹15,530 crore, which was used to provide priority debt financing to complete brownfield, stressed projects registered with the Real Estate Regulatory Authority (RERA) under affordable and mid-income categories. Around 50,000 units financed under the fund have been completed and handed over to homebuyers while another 40,000 are expected to be ready in 2025.

Beneficiaries of the 2019 SWAHIM fund in the MMR included Lodha (Macrotech) Upper Thane, MK Gabino in Andheri West, Naman Premier in Andheri East, Newa Bhakti Park in Airoli and CCI’s Rivali Park at Borivali East.

Need greater than push

The SWAMIH Fund 2.0, announced on February 1 this year, aims at pushing another 100,000 stalled housing units towards completion.

“The government has made a good move with SWAMIH Fund 2.0, earmarking an additional ₹15,000 crore for completion of housing projects stuck due to financial distress,” said G Hari Babu, national president, NAREDCO, a real estate industry body. The move would directly benefit middle-class families, many of whom were paying monthly instalments for home loans while also paying rent for alternative accommodation, Babu stated.

Though the SWAMIH Fund 2.0 promises to push through stalled projects, they must fulfill a long list of conditions to be eligible for funding. Projects must be registered with RERA; either be stalled or likely to stall if no funding is made available; at least 90% floor space index must be dedicated affordable and mid-income housing; at least 30% construction must be complete; most importantly, projects must be net worth positive, meaning the value of sold and unsold flats should exceed the construction cost needed from the fund.

Global property consultant Cushman & Wakefield had, prior to the presentation of the union budget, expected the government to bail out 500,000 stalled affordable housing units under a fresh round of the SWAMIH fund. But the ₹15,000 crore allocation will help complete only a fifth of these units, leaving the future of the remaining 400,000 units highly uncertain.