SWAMIH fund is set to complete 60,000 additional homes in the next three years

The Indian real estate market is experiencing a positive trend, with a significant decline in unsold inventory (homes waiting to be purchased) and a rise in new completions (homes ready for occupancy). This follows a period of stagnation and challenges in the sector.
One reason for this improvement is government support, particularly through initiatives like the SWAMIH Fund. This fund started in 2019, helps finish affordable and mid-income housing projects that were stuck. By February 2024, SWAMIH had completed over 28,000 homes and plans to finish another 60,000 in the next three years.
Beyond direct housing completions, experts like NAREDCO (National Real Estate Development Corporation) highlight the positive impact of SWAMIH on related industries. The fund has reportedly "unlocked liquidity" exceeding INR 35,000 crore, which has benefited businesses supplying materials, construction services, and other aspects of the real estate ecosystem. This has contributed to job creation and economic activity.
Another factor driving the housing boom is robust demand from homebuyers. A joint report by Anarock, a property consultancy, and NAREDCO reveals a significant decrease in unsold housing inventory over the last decade. Pan-India inventory overhang has dropped from a peak of 41 months in 2017 to just 15 months at the end of 2023. This indicates a healthier market where new supply is keeping pace with buyer interest.
This strong demand is reflected in rising sales figures. In the top seven Indian cities (including Mumbai, Delhi, Bangalore, and Chennai), over 2.8 million (28.27 lakh) housing units were sold between 2014 and 2023. This is closely matched by new launches exceeding 2.9 million (29.32 lakh) units during the same period. Furthermore, average housing prices in these cities have seen significant growth, ranging from 25% to 60% over the past decade.
Looking at construction activity, data shows a substantial increase in completed units. In 2022, at least 44% more units were completed compared to 2021. This trend is expected to continue, with estimates projecting over 5.31 lakh units to be completed in the top seven cities by the end of 2024. This translates to more housing options readily available for potential buyers.
With increased government support, industry recovery, and strong buyer demand, the Indian real estate market offers a promising outlook for those seeking to purchase a home.

Next (Rustomjee's Keystone realtors record 41% rise in sales booking for FY24)

SWAMIH fund is set to complete 60,000 additional homes in the next three years

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