new delhi the residential property market is reeling under huge unsold housing stocks because of issues like stalled projects and delayed possession but inventories can be cleared if real estate developers take a haircut and reduce apartment prices according to the economic surveythe balance sheets of banks and nonbanking financial companies nbfcs would also be positively impacted if builders decide so it addedpitching for correction in property prices the survey said that housing prices are ruling at a high level even as the growth in rates has been muted since 201516governments thrust on affordable housing is evident in order to boost the real estate sector and consequently the construction activity in the country higher investment in housing by households may increase the fixed investment in the economy the survey saidexisting unsold housing inventory can be cleared and the balance sheets of both banknonbank lenders cleaned if the real estate developers are willing to take a haircut by allowing the houseprices to drop it addedthe survey mentioned that the decline in household investment in dwellings other buildings and structures over 201112 to 201718 period reflects slower growth in purchase of houses by householdsthe real estate sector and residential property in particular has been reeling with issues of delayed project deliveries and stalled projects leading to a buildup of unsold inventory over the years housing prices have remained elevated even though growth in prices has fallen sharply since q1 of 201516 and remained muted since then it addedat the end of december 2018 about 943 lakh units worth rs 777 lakh crore with 41 months of inventory were stuck in various stages of the project cycle across top 8 citiesthe survey highlighted that the government has approved the establishment of a special window fund of rs 25000 crore to provide priority debt financing for completion of stalled housing projects that are in the affordable and middleincome housing sectorhaving duly recognized the financial stresses built up in the economy the government has taken significant steps this year towards speeding up the insolvency resolution process under insolvency and bankruptcy code ibc and easing of credit particularly for the stressed real estate and nonbanking financial companies nbfcs sectors the survey said