Thousands of real estate projects in many big cities of the country were lying incomplete for years. The reasons for this were lack of funding, debt burden, weak sales and legal disputes. Although some improvements took place after the implementation of RERA, but in the last one or two years, increasing demand along with government and private investment has given momentum to these projects again.
Swamih Fund, launched in 2019, has proved to be a game changer for such projects, which despite being almost completed, were stuck due to lack of funds. Through this fund of Rs 25,000 crore, so far about 61,000 units of 145 projects have been completed across the country. Due to this, the stuck capital of about Rs 37,000 crore has come back into the market. In view of this success, SWAMIH Fund 2.0 of Rs 15,000 crore has also been launched, whose target is to complete 1 lakh houses.
Along with government initiatives, private investors have also shown interest in incomplete projects. Now money is being invested in projects through Alternative Investment Fund (AIF). Before investment, a complete assessment of the land condition, legal clearance and market demand is done.
Developers say that the biggest problem is funding. As soon as cash flow stops, work comes to a halt and the confidence of buyers also breaks. Now more emphasis is being laid on better financial planning and time bound construction.
Many stuck projects are also being restarted through NCLT. Although this process has been slow, but now there is improvement in it. Many projects are being completed under the supervision of Interim Resolution Professional (IRP).
Apart from this, new models like refurbishment and renovation are also becoming increasingly popular, in which incomplete towers are completed by giving them to new developers. Due to this, supply in the market is increasing and stability is coming in the sector. Overall, due to government and private funding, new policies and development models, long-stalled real estate projects are now slowly coming back on track, which is also bringing back the confidence of home buyers.
