Introduction to Real Estate Market Advisory Group (REM ......- “Evaluation of Real Estate Property and Market Risk for Real Estate Backed Financial Products” ... in Portugal, on

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UNECE REAL ESTATE MARKET ADVISORY GROUP (REM)

Real Estate Market Advisory Group UNECE – REM

74th Session of Committee on Housing and Land Management (CHLM) of Economic Commission fo Europe of United Nations (UNECE)

9 October 2013 - Geneve

Introduction

to Real Estate Market Advisory Group

(REM) activities

by Enrico Campagnoli, Chair of UNECE REM

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“Introduction to REM activities” by Enrico Campagnoli, Chair of UNECE REM 74th Session of Committee on Housing and Land Management (CHLM)

of Economic Commission fo Europe of United Nations (UNECE) 9 October 2013 - Geneve

In view of the decision of the Committee to extend for the next two years the mandate to REM and other Committee decisions, Michael Milligan, of UNECE Secretariat, will make the presentation, within few minutes, of REM activities. These below are the UNECE documents related to REM activities: - Overview of the REM activities undertaken in 2012 - 2013 (doc. ECE/HBP/2013/4) - Draft REM Terms of Reference (doc. ECE/HBP/2013/5) - Draft REM programme of work 2014-2015 (doc. ECE/HBP/2013/6) These below are the two draft documents recently produced by REM: - “Comparison of 30 international certification systems for sustainable buildings”, ( informal notice 4) - “Evaluation of Real Estate Property and Market Risk for Real Estate Backed Financial Products” ( informal notice 5)

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“Introduction to REM activities” by Enrico Campagnoli , Chair of UNECE REM 74th Session of Committee on Housing and Land Management (CHLM)


My introduction to UNECE REM activities consists in few words: – in over viewing REM activities till 2012 and – in highlighting, with a bird's eye view, REM 2012 - 2013 activities, showing connections among events and documents

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UNECE REAL ESTATE MARKET ADVISORY GROUP (REM) Over viewing UNECE REM activities till 2012


REM was constituted on April 2008. On Dec. 16, 2008 REM at New York UN Headquarters organized an event to try to reply to the Financial crisis, just after its explosion

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UNECE, Governments, civil society and the private sector, worked together for a collective global good.

In this occasion, Rose Migiro, UN Deputy Secretary General, indicated the opportunity to prepare some guidelines for Sustainable Development of RE Markets

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Guidelines were prepared and approved by UNECE on April 2010. The Policy Framework for Sustainable Real Estate Markets

“Introduction to REM activities” by Enrico Campagnoli , Chair of UNECE REM 74th Session of Committee on Housing and Land Managment (CHLM)


has been published and then disseminated in several languages

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Before 2012, the Framework has been considered, with encouraging results, by Governments in Ukraine, on June 18, 2010 in Portugal, on January 27, 2011 in Italy, on May 12, 2011 in round tables, with governmental participation and supported also by private RE sector. Framework has been considered in several other places, as at MIPIM on March 10, 2011 in Cannes, etc. Attention to the Framework has been given in China and in Arab League



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Framework has been considered in Kiev, in Ukraine on June 18, 2010



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Opening speech of Paolo Campos, Secretary of State of Public Constructions of Portugal

Closing remarks Joao Tiago Silveire, Secretary of State of Council of Ministers of Presidency of Portugal

Framework has been considered in Lisbon, Portugal on January 27, 2011



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Framework has been considered in Rome, in Italy on May 13, 2011



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Highlighting, with a bird's eye view, REM 2012 - 2013 activities, showing connections among events and documents.

The following five REM roundtables have been held in this period, all, as those before 2012, at no charge for UNECE: - 27 January 2012. Roundtable discussion in Moscow - 21 June 2012. Roundtable discussion in Rio de Janeiro, Brazil - 4 September 2012. Roundtable discussion in Naples, Italy - 23 November 2012. Roundtable discussion in Rome - 15 January 2013. Roundtable discussion in Washington, DC

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Framework has been considered in Moscow, Russia, on Jan. 27 2012

“introduction to REM activities” by Enrico Campagnoli , Cheair of UNECE REM 74th Session of Committee on Housing and Land Managment (CHLM)


The event was organized in cooperation with the Russian Ministry of Economy and the World Bank. This discussion focused on how secure and well-protected property rights, combined with accurate and accessible information, can attract greater investment and increase economic growth. An outcome of the discussion was the recommendation to establish a working group on social housing. The Russian Federation is currently considering a draft law on social housing, with several roundtable discussion participants providing input to the proposed law.

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In Rio de Janeiro, Brazil, on June 21, 2012, at Rio + 20 side event on “Greening the Real Estate Market : The Development of a Sustainable R.E. Sector” the considerations on the Framework

Discussion centred on the impacts of previous round tables and allowed stakeholders to comment on the Framework. Throughout the discussions, stakeholders started to provide comments on how the Framework could be in future revised to meet changing conditions.

brought to the idea to prepare the document: “Comparison of 30 international certification systems for sustainable buildings”

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UNECE REAL ESTATE MARKET ADVISORY GROUP (REM) Framework and ”Evaluation of Real Estate Property and Market Risk for RE Backed Financial Products” has been considered on Jan. 15, 2013 in Washington DC in USA




The event was organized in

cooperation with the International Real Estate Federation and the Appraisal Institute. The roundtable discussed draft recommendations for the risk rating of real estate and how to apply these guidelines to improve the efficiency of real estate markets in the United States. Participants agreed to an outcome statement acknowledging the importance of real-estate risk-rating systems to macroeconomic stability and growth and to the work of the Advisory Group in this field.

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“The evaluation of real estate market risk is an integral part of the safety and soundness of the entire global financial system. The development of a uniform international real estate market risk rating system is essential so that real estate market advisory professionals can use this critical tool to provide the public with appropriate risk assessments and help avoid system collapse. We believe that the UN Economic Commission for Europe Policy Framework and the Real Estate Market Advisory Group working paper offer valuable insights in this regard. Specifically, we need to enhance real estate valuation processes and financial supervision activities relating to collateral valuation to include such real estate market risk assessments worldwide.”

This is the text of “outcome statement” unanimously agreed by participants

on January 15, 2013, at Washington DC UNECE REM event

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These are the draft documents that are now to your review, comment and eventually approval:

- ”Evaluation of Real Estate Property and Market Risk for RE Backed Financial Products” It provides guidelines for the application of accurate and transparent rating mechanisms for real estate properties to be used as collateral for financial products. It includes criteria and methodologies for a risk assessment of real estate properties that will be comparable across borders. - “Comparison of 30 international certification systems for sustainable buildings” This report presents an analysis of systems used around the world to certify a building as green, or environmentally sustainable. It compares 30 such certification systems and compares them using the criteria of the United Nations Global Compact Cities Programme. The report includes proposals for the creation of guidelines for the certification of green buildings.

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Let me finalize my introduction to the REM activities, remembering the words of UN Secretary-General Ban Ki-moon

in his speech at World Economic Forum in Davos, Switzerland (29 January 2009)

"Our times demand a new definition of leadership - global leadership. They demand a new constellation of international cooperation - governments, civil society and the private sector, working together for a collective global good."

This cooperation represents the spirit on which, I believe, the REM activities are based .

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This is the end my introduction to REM activities.

What else in future?

That depends on you

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Thank you for your attention

E-mail: [email protected]

Dott. Ing. Enrico Campagnoli UNECE REM Chair President of FIABCI International Organizations Committee International Real Estate Federation (FIABCI) World President 2010-2011 President of Istituto Italiano di Valutazione Immobiliare (IsIVI)



mailto:[email protected]

Documents

Introduction to Real Estate Market Advisory Group (REM ......- “Evaluation of Real Estate Property and Market Risk for Real Estate Backed Financial Products” ... in Portugal, on