Download Property rights and Private sector

International Real Estate Federation
www.fiabci.com
Property rights and private sector:
for the poor, a global perspective.
by Enrico Campagnoli,
International Real Estate Federation representative at UNECE
The third UNECE/REAG Land for Development Programme (LFDP) Forum
Tempio di Adriano, Piazza di Pietra, Rome, Italy - 13-14 December 2004
The International Real Estate Federation
is a 52 years old NGO, UN accredited,
present in 50 countries, really international
e multidisciplinary, involving all the Real Estate actors
( brokers, appraisers, counselors, financiers, academic institutions,
lawyers, architects, developers, contractors, investors, etc).
With its representatives accredited in all the five ECOSOC regions,
FIABCI acts in a global perspective.
FIABCI is traditionally
representative of private sector.
The International Real Estate Federation,
as representative of private sector,
strongly supported and supports
world wide property rights,
in developed and undeveloped countries.
“ Blue Book on Property Rights”
on the basis of decisions of FIABCI Houston World Congress, May 2004,
will be published by FIABCI next year,
with a world wide analysis of the property rights restrictions
and their impact on:
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the R.E. national markets
the foreign investment index
the percentage of participation of R.E. to GDP
International Real Estate Federation
To reach the Millennium Declaration Goal,
this presentation
is focused
on property rights
for the poor in a global perspective,
on “basic” property rights,
as starting point
to create or to improve the efficiency
of national real estate markets.
International Real Estate Federation
The existence of “basic” property rights essentially
depend on:
• the existence of a property (title registration, cadastre, etc)
• the constitutional and legal right to own and to use (to buy, to sell, to rent,
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to finance, etc ) a property
a minimal political stability
a reasonable safety
a acceptable legal framework and court system that allows to exercise the
constitutional and legal right to own and use the property.
a minimal national financial infrastructure
the existence of the professionals with the experience needed to own and
to use (to rent, to buy, to sell, to manage, to finance, etc) a property
a reasonable transparency
International Real Estate Federation
“Basic” property rights are the key point
to reach the Millennium Declaration Goal on poverty reduction,
in many countries across the world, as they:
• are a condition necessary, but not always sufficient,
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for the existence of a real estate market.
are the key point for private and public partnership in cooperation
with UN agencies.
are the key point generally for private sector’s investors and
specially for private sector’s foreign investors.
International Real Estate Federation
Private sector, property rights, risk and R.E. rating
Also if this presentation
is focused
on “basic” property rights,
it is clear that generally
the private sector with Real Estate rating
evaluates very carefully the level of the risk of an RE investment.
The level of severity of property rights restriction in a country
influences deeply the rating.
The rating influences deeply the investments,
as, in the global fluidity of the capitals, the investors prefer to go
where the return is higher and the risk (the rating) is lower.
The economical impact of property rights for a country
is out of discussion now.
It will be with the implementation of Basle agreement more evident.
International Real Estate Federation
To increment property rights
what we did and we are doing?
• GHF - We promote property rights for the poor with
Global Housing Foundation
• Award -We stimulate the competition among
private sector actors in slums improvement and urban
renewal with a Wall Street Journal sponsored award
• Ideas- We support ideas. For exemplum, we
participated to open a debate on Hernando de Sotho
ideas inside UN, organizing in UN in NY inside
Istambul+5 on April 2001 an event with his
participation
International Real Estate Federation
GLOBAL HOUSING FOUNDATION
acts in slums improvement and urban renewal
and promotes property rights for the poor:
• builds affordable houses for the poor with private donations
• gives houses in ownership, with property title and
sustainable mortgage, mostly to women
• incoming money from mortgages finances new houses
International Real Estate Federation
International Real Estate Federation
We stimulate the competition
among private sector actors
in slums improvement and urban renewal
with a Wall Street Journal sponsored award.
In 2004 a new award,
a new category of “Prix d’Exellence” ,
entitled
“René Frank award
for slums improvement and urban renewal”,
has been instituted by FIABCI.
The competition is sponsored
by Wall Street Journal.
International Real Estate Federation
We proposed to debate and supported ideas
Hernando de Sotho idea,
during September 2001,
few months after the debate
opened in April 2001 in NY during Istambul+5,
became the leading idea in Europe
of UNECE/REAG
to help and improve the economies
of countries in transition.
International Real Estate Federation
What we can propose now to try
to achieve
the Millennium Declaration Goal?
The target : try to increase world wide
the GDP of poor nations helping them
to create an efficient RE market.
International Real Estate Federation
How to achieve the target?
Proposing to next ECOSOC Council
in Geneva on July 2005,
- to promote the organization of bodies and
working groups similar to those existing in
UNECE , with the support of NGOs and all the
RE actors, in the other four ECOSOC regional
Commissions.
- to share with them the experience and the
knowledge existing in UNECE and in NGOs and
all RE actors.
International Real Estate Federation
.
For exemplum, it will be helpful if these
activities will be extended world wide, also
with all the modifications that regional
Commissions would like to do:
• property rights restrictions analysis, on the basis of what has been
done by UN-ECE WPLA
• country profile with the methodology similar to what used by UNECE Committee on Human Settlement.
• Guidelines similar to those are existing or in preparation in UN-ECE,
on social housing, on financial, on condominium, etc.
• Cadastre methodologies, RE professions rules and laws, etc, as they
have been developed in UN-ECE
International Real Estate Federation
If there are property rights,
there are also property responsibilities,
specially for private sector.
Private Sector could assumes its own responsibility
to propose trough the ECOSOC Regional representatives
the organization of Regional UN-REAG and others
regional bodies and working groups,
but it will be the cooperation among all the actors in UN,
the UN agencies, the national governments and the
NGOs the key of the success ,
a powerful tool-kit
to achieve the Millennium Declaration Goal