UNECE GENEVA. UN Economic Commission for Europe 63 rd Session, March 30-April 1 st , 2009 GENEVA Monday March 30 th AFTERNOON SESSION 1 Promoting competitive, knowledge-based, innovative economies. www.rics.org. UNECE GENEVA. Reforming Real Estate Markets for Financial Stability BY
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UN Economic Commission for Europe
63rd Session, March 30-April 1st, 2009
Monday March 30thAFTERNOON SESSION 1
Promoting competitive, knowledge-based, innovative economies
Reforming Real Estate Markets for Financial Stability
Steve Williams FRICS, MAI.
Global Advisor - Real Capital Analytics
Plenty of Equity……BUT Credit has Dried!
The Result? Declining global real estate investment
Quarterly Sales Volume in billions USD
…. is important to attract inward capital investment.
This is achieved via a LEVEL PLAYING FIELD.
WHAT CREATES A LEVEL PLAYING FIELD?
A DILIGENT AND ENLIGHTENED PUBLIC
ADMINISTRATION THAT CAN GUARANTEE
REAL ESTATE INVESTORS A FAIR AND OPEN
Hernandez De Soto
In his book “The Mystery of Capital”, De Soto addresses the uneven concentration of the world’s wealth. He believes that a fair and open real estate market is the key to attracting capital.
THE FUNDAMENTAL MARKET PYRAMID
The FMP illustrates those globally-recognized infrastructure elements that attract investment
THE BASE + TRANSPARENCY
THE BASE + TRANSPARENCY + PROFESSIONALISM
THE BASE + TRANSPARENCY + PROFESSIONALISM =
A COMPETITIVE MARKET ABLE TO ATTRACT INVESTMENT TO ITS LEVEL PLAYING FIELD
4. TITLE Guaranteed ownership rights through a system of recorded property titles
5. FAIR PLANNING CODES A published planning/zoning code with
open enforcement and appeal procedures
6. Regulated Financial Reporting For listed (Public)
7. Fair compensation for taking of
Property for public purposes
8. Fair system of assessing and collecting
9. Fair building codes
10. Fairly enforced health and safety measures
11. Provision of public services either free
Or at a fair cost
“The movement of capital around the world has
created a growing need for information about
It has also created an incentive for governments
to streamline bureaucratic practices that hinder
the free flow of capital”
JLL Transparency Index 2008
TOP 10 MOST TRANSPRENT COUNTRIES
Source: Transparency International, Berlin, 180-country survey published September 23rd 2008
COUNTRIES MAKING MOST PROGRESS
2006 TO 2008:
Source: Jones Lang LaSalle Transparency Index, 2008
Real Estate Brokers
COMPETING IN THE GLOBAL MARKET
Q. WHY IS THIS FUNDAMENTAL MARKET PYRAMID IMPORTANT TO UNECE TODAY?
Answers:1. The gap remains between nations WITH the pyramid infrastructure - and those WITHOUT
2. With governments acquiring interests in real estate assets through rescue and stimulus, we are entering a new era of public/private partnerships.
Currently working with the Committee on Housing and Land Management, the Working Party on Land Administration and its Real Estate Market Advisory Group (REM).
NEW YORK - DECEMBER 2008Actively contributed to the UNECE Seminar organized by the UNECE Secretariat and REM on:
“The real estate and the financial crisis: causes, effects and impacts on development”
ROME - JUNE 3-4, 2009Will contribute to the UNECE/REM meeting to develop policy principles and guidelines for the development of sound real estate markets.
Thanks for Listening