Promoting a healthy and transparent real estate market: New UNECE advisory body now operational
Geneva, 8 August 2008 --
The sub-prime mortgage crisis almost brought the United States real estate market and banking systems to their knees. Markets worldwide, including in United Nations Economic Commission for Europe (UNECE) countries in Europe from West to East, are being strongly affected by the domino effect of the resulting financial shockwaves.
While the "sub-prime phenomenon" might not happen again, there are many other risks facing young and expanding real estate markets. For instance, valuation standards and methodologies require improvement, and stronger rules must be promoted for effective fiscal policies. Building better quality and energy efficiency into both new and existing housing should be encouraged by providing incentives and stimulating sustainable investment. Increased transparency of market systems is also essential to better facilitate the exchange of information.
This last issue is particularly important since the transparency of the real estate market should be a prime objective for those countries which have only recently introduced property and land rights and are trying to develop comprehensive systems of land administration.
In order to promote market transparency and a healthy real estate market, the Real Estate Market Advisory Group (REM) was created in early 2008 to support the work of the UNECE Working Party on Land Administration. REM, which is now fully operational, is comprised of experts with extensive experience in the sector and a thorough knowledge of current realities in the UNECE region.
The main areas of work of REM include: improving the environment for real estate investment, finance and regulations; stimulating the interest of local and international investors in individual countries; assisting countries with capacity-building in the real estate and land administration sectors; acting as experts in workshops and UNECE housing and land administration reviews; and promoting cooperation between the private and public sectors.
"It is our intention, when requested, to provide member States with practical advice and expertise to make sure that the real estate market becomes a tool for sound development, avoiding pitfalls and speculations", explained Mr. Brian Emmott, current Chairperson of the Group.
"Different solutions for a healthy market will be our focus", Mr. Emmott added, "including for instance suggestions on how to start and make use of microfinance projects in this area. Contrary to what might be imagined, there is less risk in lending money to the weaker strata of the population than in any activity regarding ordinary credit. Housing is a primary necessity of many people in the region, and programmes in this direction should be promoted." The United Nations General Assembly has underlined the importance of microfinance as an integral part of efforts to attain the Millennium Development Goals.
In the coming year, REM intends to develop guidelines on the management and regulation of the real estate market, which will be shared with member States through events and activities of the Working Party on Land Administration and a special REM workshop to be organized in the first half of 2009.
For more information on the UNECE Real Estate Market Advisory Group and its activities, please contact:
Ms Paola Deda
Secretary to the UNECE Committee on Housing and Land Management
UNECE Environment, Housing and Land Management Division
Palais des Nations
CH-1211 Geneva 10
Switzerland
Phone: +41 (0) 22 917 2553
Fax: +41 (0) 22 917 0107
E-mail: [email protected]
Website: http://www.unece.org/hlm/welcome.html
Ref: ECE/ENV/08/P14