The Government is implementing a plan aimed at encouraging construction by allowing developers to invest less capital upfront while increasing their ability to borrow funds. This move is part of broader measures designed to ensure that more bank funding goes into the construction sector, particularly for apartment building. However, banking lobby groups and the Central Bank foresee potential missed targets in house-building, pointing to the need for a Government-backed credit guarantee scheme to enhance confidence in the housing market and ensure successful implementation.
The Government aims to allow developers to invest less upfront while borrowing more to boost apartment construction, aligning with economic recovery efforts.
Banking lobby groups and the Central Bank predict that current measures may lead to missed house-building targets, highlighting concerns about the housing market.
Experts believe the government's strategy may need to include a credit guarantee scheme to effectively mobilize necessary funding for the construction sector.
The focus on reducing initial investment for builders suggests a proactive approach to addressing housing shortages amidst economic challenges.
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