June 18, 2010 the world`s leading organizations involved in the economy and real estate in Europe, with the support of the International Real Estate Federation FIABCI held in Kiev a roundtable on the topic: "The path to sustainable real estate markets."
The roundtable President FIABCI Enrico Kompanoli presented the participants the basic principles and recommendations for the development of the real estate market in the country. This document was developed by the Consultative Group on Real Estate Market Economic Commission for Europe (UNECE), with the support of the International Real Estate Federation FIABCI.
This document is an accepted practice, the total number of international forums on the highest level (New York, Rome, Geneva) and is designed to minimize the effects of the global economic crisis on the real estate markets in both developed and developing countries in Europe.
The study offers advice on institutional matters such as the creation of financial markets, based on real estate as collateral, the standards agreed valuation of real property and transparency in the evaluation of investment risks. The document also justifies the need for more integrated and comprehensive approach to the creation and management of organizations dealing with real estate, especially in countries with economies in transition, and offers an overview of the institutional prerequisites for the establishment of the reliability of real estate sector, which, in turn, will contribute to achieving social and economic goals.
According to European experts, the document contains the ten basic principles as key elements of policy in the sphere of real estate markets that have been submitted to the government and professionals in real estate in Ukraine during the roundtable. For each of the principles presented by European experts have provided a list of key indicators that should be considered by the authorized bodies in the implementation of appropriate policies.
The study is based 10 key principles.
Principle 1 - An integrated legislative framework
Should be established an integrated legislative system at the national level, which should be aligned with existing regional and international norms in the real estate sector. Should be established based on technical options to enforce the rules in order to ensure the proper functioning of the real estate market also should be available at the national level legislative framework for land and land use.
Principle 2 - An effective land registry and cadastre
The level of security for real estate transactions should be increased due to the identification and protection of property rights through the establishment of an effective system of registration, cataloging, classification, and regular updates on real estate based on updated land registers and cadastral records.
Principle 3 - The effectiveness of services
Effective and transparent real estate market must comply with the legal and voluntary rules, international standards, ethical standards and best practices.
Principle 4 - Prerequisites for the development of reliable real estate markets
Well-developed real estate sector helps transform unused or underutilized resources into productive capital and thereby increases opportunities for employment and reduces poverty.
Principle 5 - Good governance
Governments need to develop integrated strategies for decision-making. These strategies should be based on clear financial and investment rules in order to ensure the establishment of a solid business climate and a more stable real estate market.
Principle 6 - Sustainable funding
Access to credit and mortgages, as well as micro-finance low-income individuals are key elements of a healthy real estate market.
Principle 7 - Transparency and innovative financial products
Transparency and proper assessment of real estate assets used as collateral for advanced financial products, can lead to social and economic benefits and reduce the likelihood of future financial crises.
Principle 8 - Property Valuation
Should be encouraged criteria for assessing property, based on generally accepted standards for evaluation, because they are fundamental to the implementation of sales transactions to gain access to credit for the application of equitable taxation.
Principle 9 - Social Housing
Social housing should be seen as an integral part of the real estate market as a means of stimulating economic growth, urban development, reducing the pressure in the housing sector, and as a policy option to address the problem of informal settlements.
Principle 10 - Education and capacity
In order to guarantee an effective real estate market with high quality professional services and construction products, investments on a regular basis should be carried out training activities, training and continuous professional development for all those who, in those or other functions involved in the chain of resources housing.
Policy framework for sustainable real estate market
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