Propping up the property market

A credit guarantee can give housing a boost

India’s housing landscape is littered with thousands of stalled housing projects. Stalled or delayed projects spell loss of output and jobs. They also spell grief for homebuyers. Getting these projects through to completion must rank high on the agenda of economic revival.

Stalled housing projects are not strictly a post-Covid phenomenon. These had happened even before Covid struck in early 2020. The problem is not affordability, but a fear psychosis among buyers. Customer confidence has fled in the wake of bad experience with stalled projects, including some high-profile ones.

Residential housing projects are financed through a mix of equity, debt