Conference Proceedings : âJANASEVANAâ National ... - UN HABITAT
Conference Proceedings : âJANASEVANAâ National ... - UN HABITAT
Conference Proceedings : âJANASEVANAâ National ... - UN HABITAT
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Given 23 March 2011<br />
Investments in Housing: Current Trends, Opportunities and Challenges<br />
Investment in Urban Housing 2011<br />
By<br />
Dr Darin Gunesekera<br />
Member of Global South Council on Inclusive Cities (Social Entrepreneurs/ Private<br />
Sector)<br />
NOTES<br />
1 Investment in Housing<br />
In market economies there is a very stable and long standing relationship that<br />
holds over long periods of time between housing and investment. Of all investment<br />
something like half will always be in fixed assets and of that the predominant part in<br />
housing. There are substitutions and imputed values that regularly occur. But the<br />
dominance of Housing or investment in residences is a feature of investment.<br />
This does not mean of course that investment in residences is stable. Quite to<br />
the contrary, the private sector economy of housing is always cyclical.<br />
In recent decades we have seen this housing cycle or construction cycle become<br />
ever more pronounced and unstable in the world economy. Each time at the bust<br />
phase of the cycle, the amount of lost value has been larger. At the most recent crash<br />
of the world financial system, the loss of value was estimated to have been US$30<br />
Trillion. Nearly a half of world wealth evaporated.<br />
2 Urban Housing<br />
In the Commonwealth economic world, public housing dates from 1921. Then<br />
Housing Ministers were concerned with a small number of homes to be built for the very<br />
poorest of the urban workforce. The issue of urban housing has expanded since then.<br />
Urban Housing today includes more than planning and architectural design. It<br />
also includes solutions for the local economy (livelihoods) and its infrastructure. Along<br />
with that come issues as pollution and the Environment. The digital divide and solutions<br />
to urban administration are also part the issues.<br />
The key issue for developing countries is to generate our own integrated and<br />
national design in this regard. It must plan for the development of local firms and the<br />
role as partners and entrepreneurs of the communities affected.<br />
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