SWAMIH Fund Supports Greater Noida Project
The Special Window Fund for Affordable Middle Income Housing (SWAMIH) has approved a substantial sum of approximately ₹164 crore for Capital Infratechomes Pvt. Ltd., a real estate developer operating in Greater Noida. This last-mile financing initiative is poised to positively affect around 900 prospective homeowners. The infusion of funds will facilitate the developer in handing over the keys to all 450 apartments, with a targeted completion date of October 2021, and a small number of additional apartments are expected to be ready by February 2022. The SWAMIH fund's total disbursements within the country have reached an impressive figure of approximately ₹12,000 crore, supporting more than 80,000 housing units distributed across 123 projects. According to studies carried out by NAREDCO, the National Real Estate Development Council, developers across the nation are increasingly confident about future prospects, anticipating an upward trajectory and a more healthy recovery for the sector. Niranjan Hiranandani, National President of NAREDCO, commented, “Despite the fact that the SWAMIH fund has done a good job, still there are many projects on hold. Their recovery will require an increase in the size of the fund, enabling financial institutions to participate in this process.”
Greater Noida Authority's Role
A spokesperson for the Greater Noida Authority confirmed that the authority has addressed permissions relating to developer dues. A review meeting took place on Wednesday to deliberate on these and other pertinent matters. Further discussions regarding the utilization of the SWAMIH fund to revive stalled projects are scheduled. A series of meetings are planned for March 15th, slated for engagement with three to four developers from the region, where the potential application towards resolving such projects will be examined thoroughly.
Addressing Liquidity Challenges in Real Estate
The ripple effects of liquidity constraints have been palpable within virtually every asset class, yet the residential real estate sector emerged as one of the most vulnerable segments. Data furnished by ANAROCK Research paint a stark picture: as of the close of 2019, a staggering 5.77 lakh housing units, initiated in 2013 or before, and collectively valued north of ₹4.63 lakh crore, languished in the category of delayed projects across primary real estate hubs in India. As a means to mitigate this escalating issue, the government orchestrated the establishment of a ₹25,000 crore Alternative Investment Fund (AIF) in 2019. Its core purpose was the completion of residential properties trapped in various stages of incompletion, inclusive of immobilized projects and those entrenched in insolvency proceedings. Capital Infratechomes is now among those benefiting from the resultant disbursements.