Real estate investment is a key contributor to economic growth, household welfare, and urban development. Construction is one of the sectors with the most impact on the economy. It deepens and makes the financial system more efficient by helping to mobilize savings, expand access and reduce informal sources of finance. Financing real estate investments, however, is challenging. Housing is made affordable by a robust lending system that can facilitate long-term transactions, spread large investment costs, and use fixed interest rates for stability purposes. These features are not present in most emerging economies and are difficult to build. Without such a system, however, lending remains short-term and restricted. Real estate lending, including commercial and development investments, can destabilize the financial system, particularly if linked to cyclical and sometimes speculative market risks, as demonstrated by the recent global financial crisis.