1. Private sector & UNECE principles for Country's real estate sector development International Real Estate Federation Enrico Campagnoli, FIABCI World President UNECE/REM member UNECE Policy Framework for Sustainable Real Estate Markets: Sound rules to improve the real estate sector and promote economic growth Hotel Pestana- January 27 th 2011 – Lisbon- Portugal

2. International Real Estate Federation International Real Estate Federation is a 62 year old NGO, United Nations accredited, is a 62 year old NGO, United Nations accredited, present in 65 countries, completely international present in 65 countries, completely international and multidisciplinary, which involves the main players in Real Estate and multidisciplinary, which involves the main players in Real Estate ( brokers, appraisers, counselors, financiers, academic institutions, lawyers, architects, developers, contractors, investors, etc), represented in all the five ECOSOC regions. FIABCI acts with a global perspective and has an holistic approach to RE FIABCI is historically, traditionally and “de facto” the most representative world organization FIABCI is historically, traditionally and “de facto” the most representative world organization of RE private sector. of RE private sector.

3. Private sector & UNECE principles for Country's real estate sector development Part 1 - Support and participation in preparation of the UNECE principles Part 2 - Dissemination, pilot experiment and rationalization of a flexible repeatable format Part 3 - Proposal for consideration on national basis in Portugal

4. Private sector & UNECE principles for Country's real estate sector development Part 1 Support and participation in preparation of the UNECE principles

5. International Real Estate Federation In front of the global financial crisis where - RE sector was a victim not the cause, - the lack of global regulations was the main cause of the crisis, not only FIABCI continued and improved standard activities, such as: Business opportunities facilitation, not only FIABCI continued and improved standard activities, such as: Business opportunities facilitation, Networking, Exchange of information, Stimulation of competition,Training, Formation, etc, it also acted at global United Nations level to develop the missing global regulations to develop the missing global regulations

6. International Real Estate Federation In United Nations FIABCI FIABCI assumed the social responsibility, assumed the social responsibility, as main representative of RE private sector, as main representative of RE private sector, by trying: by trying: - to minimize social and economic effects - to minimize social and economic effects of the crisis of the crisis - to avoid a new crisis happening again - to avoid a new crisis happening again - to get out of the crisis with a stronger RE sector - to get out of the crisis with a stronger RE sector

7. International Real Estate Federation United Nations was the only global organization entitled to propose to member States “principles and guidance for the development of Country's RE sector” for the development of Country's RE sector”FIABCI made every possible effort to support an appropriate United Nations body, to support an appropriate United Nations body, Economic Commission for Europe of United Nations (UNECE) to make this possible to make this possible A subsidiary body of UNECE, the Real Estate Market Advisory Group (REM) was chosen as the structure to concentrate all efforts: (REM) was chosen as the structure to concentrate all efforts: http://www.unece.org/hlm/wpla/rem/rem.htm http://www.unece.org/hlm/wpla/rem/rem.htm

8. Just before the financial crisis started.... June 12, 2008 in Milan, Italy

9. International Real Estate Federation UNECE/REM work programme presentation

10. On December 16, 2008, a few months after the crisis started, FIABCI supported an event in New York at the UN headquarters on : “Real Estate and Financial Crisis” with the Deputy Secretary General of United Nations

11. z December 16, 2008 - New York UN headquarter -At the event organized with the support of FIABCI United Nations decided to prepare regulations for RE markets

12. From December 16, 2008, the UN proceeding started to have UNECE principles and guidance for the development of Country's Real Estate Markets In the photo: some of the panel of experts at New York UN headquarters, Mrs. Migiro, Deputy General Secretary of UN, Mr. Brown, Wall Street Journal Editor, Mr. Garonna, UNECE Deputy Executive S ecretary

13. On June 3, 2009 in Rome the first draft was presented to the consideration of the representatives of UNECE member States

14. After a long UN proceeding, with meetings in New York, Rome, Geneva UN headquarters, public consultations, member States representatives modifications, final approval, official signature..

15. On March 16, 2010, fifteen months after December 16, 2008 seminar at UN headquarters in New York, UNECE, a relevant body of United Nations, officially issued the document supported by FIABCI: “POLICY FRAMEWORK FOR SUSTAINABLE REAL ESTATE MARKETS: Principles and guidance for development of a Country's real estate sector ”

16. The document can be downloaded from UNECE web site: http://www.unece.org/htm/wpla/rem

17. FIABCI support is fully recognized in the document

18. International Real Estate Federation FIABCI is a private organization that strongly supported these United Nations principles and guidance to develop Country's RE markets: a “tool “for UN member States to develop the RE sector.

19. Private sector & UNECE principles for Country's real estate sector development Part 2 Dissemination, pilot experiment and rationalization of a flexible repeatable format

20. FIABCI continued and improved its standard activities, such as: Business opportunities facilitation, Exchange of information, Networking, Stimulation of competition,Training, Formation, etc. FIABCI decided in Brussels on December 2010 also: - to enlarge and implement its role - to improve the RE sector role and image on the basis of a document: Ideas for an exclusive role in global Real Estate

21. International Real Estate Federation FIABCI is now the organization that promotes these United Nations “principles and guidance” world wide to support the globalization of an efficient and homogeneous RE Market, “well regulated” for social and economic benefits of Countries and also in the interest of private RE sector, that FIABCI represents to support the globalization of an efficient and homogeneous RE Market, “well regulated” for social and economic benefits of Countries and also in the interest of private RE sector, that FIABCI represents

22. International Real Estate Federation to contribute to restore confidence in the market in financial products backed by RE assets to support the development of a green RE market, to contribute to have a larger impact on the GDPs and to facilitate getting out of the crisis to support affordable and social housing “as an integral part of the Real Estate market”, with an appropriate land policy. to support affordable and social housing “as an integral part of the Real Estate market”, with an appropriate land policy.

23. Informal translations can be downloaded from www.fiabinews.org Dissemination : The UNECE/REM document was translated into Chinese, Italian, Portuguese, Russian, Spanish The UNECE/REM document was presented in: Rio de Janeiro, Macau, Kuala Lumpur, Milan, Brussels, New York, etc, etc

24. Pilot experiment Pilot experiment For FIABCI, a pilot experiment was important, a pilot experiment was important, to launch a bridge between RE private sector, UN and National Governments, to verify if the cooperation, could be the key of the success could be the key of the success both for National economies and private RE sector.

25. June 18, 2010, in Kiev UNECE - Ukraine Government -FIABCI Pilot Experiment On June 18 last, in Kiev, there was also a practical verification of the possibility, for a FIABCI Chapter, to promote these principles. The newly elected Ukraine Governmental Authorities considered United Nations "principles and guidance for the development of real estate sector", with a view to reform the Real Estate market in Ukraine. Translated by FIABCI Ukraine Chapter,he UN official Russian translation of this UN document was launched during this event.

26. , The event was organized by UNECE and Ukraine Government and FIABCI Ukraine Chapter and had the participation of all the the main Ukraine real estate stockholders.

27. , Deputy Chairman State Committee Yatsyshyn GM offered to establish a Working Group on real estate market development in Ukraine, headed by State Committee YM Brodsky and decided to establish a Working Group on real estate market development in Ukraine constituted by: Brodsky MU - Chairman State Committee; Abbasov Ie - President "FIABCI - Ukraine; Swan NP - Member of Society of Appraisers in Ukraine; Havrysh LA - Former president of the Professional Association of financial rulers of Ukraine; Kravchenko VI - Executive Director of the Construction Chamber of Ukraine; VV Nesin - Chairman of the Committee of the Chamber of realtor laws of Ukraine, head of the Union real estate consultants; OA Bondarenko - Chairman realtor Chamber of Ukraine; The outcome: a governmental working group to develop the Ukraine Real Estate sector

28. An United Nations press release published - on the UN-ECE Web site http://www.unece.org/press/pr2010/10env_p18e.htm - on the UNECEWeekly magazine http://www.unece.org/highlights/unece_weekly/weekly_2010/UNECE_weekly_2010-378.pdf Large coverage of the Ukraine press as:

29. ,

30. The results are on the web site of Ukrainian government now, six month later. This the text: Urban planning revolution takes place in Ukraine January 13, 2011 Verkhovna Rada of Ukraine by 296 votes of MPs adopted a law drafted by the Government of Ukraine "On regulation of urban planning activities". This law makes system changes to more than 100 articles of 23 laws. Changes are aimed at simplifying and improving all the phases of urban planning: from construction planning to putting into operation of the facility built.

31. Development of the law was actively participated by the representatives of the construction industry, investors, and experts. Market participants’ opinion was carefully considered. That is why the conditions change of urban planning, defined by the law, may be named as the revolutionary ones for the industry, which for decades has remained perhaps the most over- regulated, respectively, corrupt. What revolutionary is in the law "On regulation of urban planning"? Urban planning documentation and the process of its approval is drastically simplified. The list of types of documentation is shortened. Three out of five parts remain: general plan, detailed plan, and zoning. List of sites which design does not require urban conditions and restrictions. Among them: catering area up to 200 square meters, renovation of office and commercial premises, replacement of linear structures, restoration of facades of residential and nonresidential buildings, installation of pipelines of low and medium pressure and more.

32. Projects approval through the "one-stop-shop" Legislation determines that the project developed in due order will not require additional approvals by any agencies or organizations. Projects testing for compliance with energy saving, labor protection, environment, fire safety, etc. will be done on other grounds: by one organization, not six departments, as it were. Profiled authorities if necessary will perform examination only of the most complicated objects. Construction projects expertise is simplified maximum: only the objects of 4-5 degree of complexity are subject to obligatory expertise, that means the most technologically complex and dangerous objects. Thus the Law specifically notes that none of the received before putting into operation expertise is not canceled. In general, instead of 93 steps in obtaining permits and approvals to construction sites that existed prior to enactment for the investor, just 23 remains. The whole procedure of permits obtaining, which made 416 days, is reduced to 60 days.

33. Instead of multiple licenses – executer responsibility certificate The real revolution in construction is the changed concept of regulation: the performer, not the controller, will respond for compliance with urban planning regulations. The law creates the conditions for gradual transition from licensing of construction activity to certification of certain types of work. That means instead of paper-license for every step of the builder – there is the enforcement of contractors’ responsibility, on which depends the assurance of stability, reliability, and quality of buildings The ability to perform construction work at sites of 1-3-category of complexity (e.g., farmstead and residential low-rise buildings, large part of administrative and commercial buildings, catering, and domestic service) without permission, by notice or declaration is previewed. Strict registration declaration terms and permit issue for construction work are set: 5 and 10 days respectively instead of the current month period (which actually was lasting years).

34. Simplification applies to accepting into operation of completed construction objects. Reducing red tape and construction terms shortening will primarily contribute to reduction of the apartments’ price on the market and elimination of corruption risks. Principally new legislation field is created by the Law for private housing building. Residential buildings up to two floors, having area up to 300 square meters will be allowed to be built based on simplified construction passport. Implementation of the Law " On regulation of urban planning activities" will surely give strong incentives for development of the industry, which suffered the worst losses from financial crisis: in 2008-2009 the volume of construction in Ukraine has been reduced by two thirds. Purview allows to design new construction facilities and to obtain permits 7 times faster and cheaper. Thus, the Government, which considers the construction one of the locomotives of economic growth, relies on quick recovery and accelerated development of the industry.

35. Rationalization of a flexible repeatable format,thi With the advice of UNECE Secretariat, on December 3 last in Brussels a preliminary rationalization of a flexible repeatable format was defined for proposal to National Government to take into consideration the UNECE document, taking into account the experience of the pilot experiment in Ukraine.

36. A preliminary “standard format” to be refined could be based on: 1. The translation of the document in the national language and eventually its presentation in powerpoint; 2. The presentation of the following documentation, eventually in national language : how UNECE document has been prepared and how FIABCI supported it, in powerpoint the presentation of the Ukraine case study in powerpoint 3. A round table and the request to evaluate the opportunity of the constitution of a National governmental working group, to research in the national RE framework how and if the consideration of the principles could be useful in that country. It can be done with the involvement of national Universities and RE actors. Common criteria for RE market analysis could be defined.

37. Private sector & UNECE principles for Country's real estate sector development Part 3 Proposal for consideration on national basis in Portugal

38. This preliminary “standard format”, to be refined, is used today in Portugal: 1. The translation of the UNECE document in the national language 2. The presentation of the following documentation:  how UNECE document has been prepared and how private sector supported it;  the presentation of the Ukraine case study 3. A Round Table and the request to evaluate the opportunity of the constitution of a National Governmental working group to research in the national RE framework how and if the consideration of the principles could be useful in Portugal.

39. This preliminary “standard format”, to be refined, is used today in Portugal: 1. The translation of the UNECE document in the national language

40. This preliminary “standard format”, to be refined, is used today in Portugal: 2. The presentation of the following documentation :  how UNECE document has been prepared and how FIABCI supported it,  the presentation of the Ukraine case study

41. This preliminary “standard format”, to be refined, is used today in Portugal: 3. A round table and the request to evaluate the opportunity of the constitution of a National governmental working group to research in the national RE framework how and if the consideration of the principles could be useful in Portugal.

42. These are the titles of the UN 10 Principles, each with the description, rationale and key indicators: 1- Integrated Legal Framework 2- Efficient Land register and cadastre 3- Efficiency of services 4- Prerequisites for development of sound RE Markets 5- Good governance 6- Sustainable financing 7- Transparency and advanced financial products 8- Property valuation 9- Social housing 10- Training and Capacity-Building

44. What are the possible targets? What are the possible targets? - more efficiency in National RE Market - to increase the confidence in the National RE Market - to increase foreign investments - to introduce risk assessment rules to give more confidence in financial products backed by Portuguese RE assets. - to improve Green RE Market to minimize the effects of the crisis improving the GDP - appropriate land policy - etc But this is the role of Round Table But this is the role of Round Table and Portuguese RE actors..... and Portuguese RE actors.....

45. What support can the International Real Estate Federation provide? Support can be provided in many ways, including helping to bring the Portuguese RE Market to the attention of the world wide RE private sector. Yesterday January 18th during the Economic and Social meeting of Arab League, in Sharm el Sheick

46. Tomorrow on February 21-22 in Beijing in China

47. On March 10 th MIPIM Cannes

48. International Real Estate Federation Thanks for the attention Dott. Ing. Enrico Campagnoli, - FIABCI World President - Past Chair of UNECE/WPLA/Real Estate Market Advisory Group (REM) - President of Italian Institution for Real Estate Valuation (IsIVI) - Senior adviser of IL PUNTO Real Estate Advisor srl Email: enricocampagnoli@ilsasso.it