Contact Information: Contact: Alyssa Nightingale 631.367.8599 anight@att.net
Affordable Housing Is a Priority for Overcoming the Crisis and Achieving the Millennium Development Goals
Secretariat and the Real Estate Market Advisory Group (REM) of the United Nations Economic Commission for Europe, With the Support of the International Real Estate Federation (FIABCI), to Develop Guidelines
| Source: FIABCI
NEW YORK, NY--(Marketwire - December 22, 2008) - "Beyond the seriousness of the real estate
crisis and the economy, we must not overlook the effect on the social
dimension of people's lives. It is now all the more imperative to
strengthen the global partnership for achieving the internationally agreed
development goals." This warning, from the Deputy-Secretary-General,
Asha-Rose Migiro, was made at a seminar on the real estate and financial
crisis organized by the United Nations Economic Commission for Europe
(UNECE), its Real Estate Market advisory group (REM) and the International
Real Estate Federation (FIABCI), held on 16 December in New York.
At the seminar, a panel of experts discussed the root causes, effects and
impacts of, as well as possible solutions for, the current crises on
development. Speakers stressed the need to focus on the different demands
and realities as well as alternative models and tools, not merely the
financial pitfalls facing just a few countries. Affordable housing remains
a critical issue, with many countries still lagging behind in terms of
providing basic housing services.
There is a need to address global markets and global imbalances related to
the real estate, which includes a better mobilization of domestic
resources. Warnings have been made concerning the use of foreign capital
for housing and its unpredictability. Better, smarter and increased
regulation should be part of any new real estate deal. The dangers of
sub-prime mortgages were already highlighted in the 1990s, nevertheless,
little was done. Bubbles were fuelled by bad policies. To avoid the same
mistakes in the future, the experts concurred that stronger and more
effective monitoring of the markets, combined with greater accountability,
is absolutely essential.
Experts at the seminar also agreed that a collaborative system to supervise
enterprises -- comprising private and public stakeholders, a greater role
for government and improved international coordination -- was needed.
According to Deputy-Secretary-General Migiro, "It has become apparent that
the housing sector needs to take into consideration the broad spectrum of
stakeholders with which it interacts -- not only the institutions providing
financing, but also the people who are purchasing the houses."
In closing the seminar, Paolo Garonna, Officer-in-Charge of UNECE,
emphasized that the political landscape now seems ready for change and that
the post-carbon economy offers opportunities for renewed housing and real
estate policies as well as for enhancing transparency of the system. A
well-motivated regulatory system and promoting practical cooperative
arrangements in practice, such as private-public partnerships, will also
promote sustainability in refurbishment and construction, and help make
housing more affordable for all.
The relevant UNECE committees are well placed and already actively
providing concrete policy tools to its member States. In particular,
practical advice for countries on the real estate crisis will be developed
by REM, which is organizing a conference in late March in Rome to discuss a
set of "Guidelines for the Development of the Real Estate Market for Social
and Economic Benefits."