DEPUTY SECRETARY-GENERAL DESCRIBES AFFORDABLE HOUSING AS PRIORITY

FOR OVERCOMING FINANCIAL CRISIS, ACHIEVING MILLENNIUM GOALS

“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,” United Nations Deputy-Secretary-General Asha-Rose Migiro emphasized at a recent seminar on the real estate and financial crisis.  “It is now all the more imperative to strengthen the global partnership for achieving the internationally agreed development goals.”

Organized by the United Nations Economic Commission for Europe (UNECE), its Real Estate Market advisory group and the International Real Estate Federation, the seminar was held on 16 December in New York.  It featured a panel of experts who 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 remained a critical issue, with many countries still lagging behind in terms of providing basic housing services.

There was a need to address global markets and global imbalances relating to real estate, including through a better mobilization of domestic resources, according to the experts.  Warnings had been issued about 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 had already been highlighted in the 1990s; but, little was done.  Bubbles were fuelled by bad policies and in order to avoid the same mistakes in the future, the experts agreed, stronger and more effective monitoring of the markets, combined with greater accountability, was absolutely essential.

The experts also agreed on the need for a collaborative system to supervise enterprises.  It should comprise private and public stakeholders, a greater role for Government and improved international coordination.  Deputy-Secretary-General Migiro said: “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 seemed ready for change, and that the post-carbon economy offered opportunities for renewed housing and real estate policies, as well as for enhancing transparency in the system.  A well-motivated regulatory system and the promotion of practical cooperative arrangements in practice, such as private-public partnerships, would also promote sustainability in refurbishment and construction, while helping to 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 on the real estate crisis will be developed by Real Estate Market advisory group, which is organizing a conference in Rome late next March to discuss “Guidelines for the Development of the Real Estate Market for Social and Economic Benefits”.

For more information, please contact Paola Deda, Secretary to the Committee on Housing and Land Management, UNECE Environment, Housing and Land Management Division, phone: +41 (0) 22 917 2553, fax: +41 (0) 22 917 0107, e-mail: paola.deda@unece.org.  Website: http://www.unece.org/hlm/welcome.html.

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For information media • not an official record