₹15k-cr SWAMIH fund to help stalled projects
Union FM Nirmala Sitharaman announced a ₹15,000 crore SWAMIH 2.0 fund to support stressed housing projects, aiding middle-class families facing EMI and rent burdens.
Union finance minister Nirmala Sitharaman on Saturday announced a ₹15,000 crore SWAMIH 2.0 fund as part of her budget speech to address the looming issue of stressed housing projects. The SWAMIH (special window for affordable and mid-income housing) fund was first introduced in the 2019 budget to provide priority debt financing for completing stressed, brownfield and Real Estate Regulatory Authority (Rera)-registered residential projects falling in the affordable, mid-income housing category.

“Fifty thousand dwelling units in stressed housing projects have been completed, and keys handed over to homebuyers. Another 40,000 units will be completed in 2025, further helping middle-class families who were paying EMIs on loans taken for apartments, while also paying rent for their current dwellings,” Sitharaman said in Parliament.
An August 2024 PropEquity study said that around 508,000 housing units as part of 1981 projects are stalled across 42 cities.
According to the FM, the second edition of this fund will be established as a blended finance facility with contributions from the government, banks, and private investors. “This fund of ₹15,000 crore will aim for the expeditious completion of another 1 lakh units,” she said.
This move comes as a minor shift in the focus of the Modi government, which has been pushing affordable housing (including housing for economically weaker sections) under the Pradhan Mantri Awas Yojana–Urban and also eliminated the Credit Linked Subsidy Scheme (CLSS) component under the scheme after 2022.
It was only in the last budget that a similar interest subvention scheme was reintroduced for the middle-income segment.
G Hari Babu, national president of the National Real Estate Development Council (NAREDCO), said the SWAMIH Fund 2.0 will directly benefit middle-class families, many of which are juggling EMIs for home loans while also paying rent for alternative accommodation. “The decision to exempt income up to ₹12 lakh from taxation under the new regime is a significant incentive for the middle-income group, making homeownership more accessible and encouraging investment in the housing sector.”
However, he said, the budget could have also addressed some crucial areas, particularly the affordable housing segment. A report by the Confederation of Indian Industry (CII) and Knight Frank released in December 2024 predicted affordable housing shortage to touch 31.2 million units by 2030 (CHECK).
“Rising home loan interest rates and the outdated definition of affordable housing have created barriers for many potential homeowners. The government should prioritise revisions to the current housing cap, which has been stagnant for nearly eight years, making it difficult for developers to deliver affordable homes within the set limits. Reforms to the capital gains tax framework and the introduction of tax relief for rental housing would also ensure a more sustainable and equitable real estate market,” Babu said.
Anuj Puri, chairman of Anarock Group noted that from a real estate perspective, the budget delivers both direct and indirect benefits, acting as a catalyst for growth but said the absence of major announcements for the affordable housing sector will leave stakeholders disappointed.
Among the positives, he mentioned the tax benefits announced for residential property investors. “Investors can now claim nil valuation for two self-occupied properties, instead of just one - a positive move for residential real estate investment. The simplified TDS on rent decreases the compliance burden and enhances liquidity for landlords and will positively impact the rental housing market, especially in metro cities.”
He explained that previously, homeowners could claim only one self-occupied property as tax-free; now, they can claim two -- thereby removing taxation on notional rental income from a second home. “This step minimises tax pressures, promotes homeownership, and facilitates real estate investment, especially in second homes and Tier 2 and 3 cities,” he said.