UNCTAD chief: There is a global shortage of affordable housing finance

The global financing deficit is a key obstacle to meeting the growing demand for affordable housing, stated Rebeca Grynspan, Secretary-General of the United Nations Conference on Trade and Development (UNCTAD), at an event held within the framework of WUF13 in Baku, according to Report.

She said that the pace of supply in the real estate market significantly lags behind population needs.

At the same time, trillions of U.S. dollars are accumulated in sustainable development funds globally, but these funds are not directed to the regions that need them most due to the lack of risk mitigation mechanisms for private investors from multilateral development institutions.

"We need to combine the mobilization of domestic finance with the attraction of those trillions of dollars that are currently in the global market but do not reach the most important and needy areas," she said.

Greenspan emphasized the need for effective mortgage systems for the most vulnerable populations to reduce the cost of capital.

"To achieve the required scale of construction, it is necessary to create hybrid models that combine public funds, private investments, and household savings," she added.