Government plans to let developers invest less and borrow more to speed up apartment-building

In an effort to boost apartment construction, the Government is coordinating with banks to reduce the upfront investment required from developers, enabling them to borrow more funds. This initiative aims to address housing shortages, but faces challenges, as the banking lobby and the Central Bank have highlighted anticipated shortfalls in house-building targets. Experts suggest that a government-backed credit guarantee scheme may be necessary to ensure adequate funding from banks into the construction industry, highlighting the importance of secure financing in achieving housing goals.

The Government is working on plans to lower the upfront investment required from developers, allowing them to borrow more for apartment construction.

Market experts indicate that a government-backed credit guarantee scheme is essential to achieve the desired funding from banks into the construction sector.

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