Round Table: Towards Sustainable Real Estate Markets in Ukraine Kiev, assembly hall of the State Committee of Ukraine June 18, 2010

Organizers Organizers

It’s useless to fight against external crisis as it doesn’t care whether you fight it or not Struggle against internal crisis is much better – its prophylaxis is a normal state of a manager

main speakers main speakers

56 participants 20 representatives of mass media Speakers: - Deputy Chairman of State Committee of Ukraine on Regulatory Policy and Entrepreneurship (Yatsishina Galina) - Director of department Civil Law and Entrepreneurship (Zavalna Inna) - Director of Investment Department of the State Agency of Ukraine of Investments and Innovations (Lukach Rostislav) - People's Deputy of Ukraine (Igor Prasolov) - Chairman of the Legislation Committee realtor Chamber of Ukraine (Victor Nesin) - Member of the Council of the Society of Appraisers in Ukraine (Natalia Lebed) - Executive Director of the Construction Chamber of Ukraine (Vasiliy Kravchenko) - President of Union crisis-managers of Ukraine (Paul Mihiylidi) - First Vice-President of the Union real estate in Ukraine (Igor Odnopozov) - Ex-President of the Professional Association of financial companies stewards in Ukraine (Gavrysh Larisa) - Deputy Chairman of State Committee of Ukraine on Regulatory Policy and Entrepreneurship (Svischeva Svetlana) Participants of the round table

Dispensing material

PRINCIPLES Principle 1 – Integrated legal framework An integrated national legal system should be established and harmonized with the existing regional and international norms for the real estate sector. Technical reference frameworks should be set for the application of regulations in order to promote the proper functioning of the real estate market. In addition, a legal framework for land and land use should be available at the national level. Principle 2 – Efficient land register and cadastre The security of real estate transactions should be enhanced by identifying and protecting property rights through the establishment of an efficient system for the registration, cataloguing, classification and updating of real property data, based on up-to-date land registry and cadastre records. Principle 3 – Efficiency of services An efficient and transparent real estate market has to be consistent with legal and voluntary regulations, international standards, ethical rules and best practices. Principle 4 – Prerequisites for development of sound real estate markets A well-developed real estate sector contributes to the conversion of unused or underused resources into productive capital, hence increasing employment opportunities and reducing poverty. Principle 5 – Good governance Governments need to develop integrated policies for decision making. In order to create sound business climate and foster more stable real estate markets, these should be based on unambiguous financial and investment rules.

Principle 6 – Sustainable financing Access to credit and mortgages as well as microfinance for low-income earners are essential elements of a healthy real estate market. Principle 7 – Transparency and advanced financial products Transparency and appropriate valuation of real estate assets used as collateral for advanced financial products can produce social and economical benefits and reduce the probability of future financial crises. Principle 8 – Property valuation Property appraisal criteria based on commonly shared valuation standards should be promoted, as it is essential to purchasing and selling activities, access to loans and the application of equitable taxation. Principle 9 – Social housing Social housing should be considered as an integral part of the real estate market, as means to promote economic growth, urban development, reduction in housing pressure, and as a policy option to address the problem of informal settlements. Principle 10 – Training and capacity-building To guarantee an efficient real estate market with high quality professional services and building products, investment should be made in training, upgrading and continuous professional development for all those who, in their various functions, are involved in the housing supply chain. PRINCIPLES

Banquet. Meeting of the members of FIABCI Ukraine with the president of the International Real Estate Federation FIABCI, the representatives of the government of Ukraine and the representatives of public organizations of Ukraine.

The result of the first working table was creation of a working group the main task of which is to adopt a plan of actions on the realization of recommendations that were mentioned in the document: POLICY FRAMEWORK FOR SUSTAINABLE REAL ESTATE MARKETS Principles and recommendations for the development of country’s real estate sector

Chairman of the working group: Brodskiy Mihail The working group: 1. Ministry of justice of Ukraine. 2. Ministry of regional development and construction of Ukraine. 3. Ministry of housing and utilities of Ukraine. 4. State committee on natural resources of Ukraine. 5. State committee on statistics of Ukraine. 6. National bank of Ukraine. 7. State property fund of Ukraine. 8. The state agency of Ukraine for investment and development. 9. Ministry of finance of Ukraine. 10. Council of the Society of Appraisers in Ukraine (Natalia Lebed). 11. Executive Director of the Construction Chamber of Ukraine (Vasiliy Kravchenko). 12. Ex-President of the Professional Association of financial companies stewards in Ukraine (Gavrysh Larisa). 13. Chairman of the Legislation Committee realtor Chamber of Ukraine (Victor Nesin). 14. Chairman of the National Council of Realtor Chamber of Ukraine (Alexandr Bondarenko). 15. President of FIABCI-Ukraine (Telman Abbasov). The aim of the working group: To prepare the plan of work on stages of providing recommendations “Policy framework for sustainable real estate markets” in Ukraine till the 29th of September The working group includes representatives of authorities and public organizations.

EVERYBODY FALLS DOWN. WINNERS STAND UP QUICKER. ICHAK ADIZES

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