State and private sector cooperation is no longer sufficient to solve the housing crisis, Antonio Campagnoli, World President of the International Real Estate Federation (FIABCI), said at the conference titled “De-Risking Housing Finance: Mobilizing Private Capital for the Large-Scale Delivery of Adequate Housing” held within the framework of WUF13, APA reports.
He stated that the traditional public-private partnership model is no longer enough to solve the global housing crisis and that new approaches are needed. According to him, trust, stable governance and the active involvement of communities in the process are the main conditions for attracting long-term capital to the housing sector.
“One of the main problems in the field of housing finance and sustainable communities today is the lack of coordination among various parties. Risks are not only financial in nature, but are also related to fragmentation, weak governance, mistrust and institutional instability,” Antonio Campagnoli said.
He presented a new approach called the “5P model” and said that this model, in addition to the traditional public-private sector partnership, also includes the components of “people” and “policy.”
According to Antonio Campagnoli, an interconnected system should be established between the state, private sector, people, policy and partnership for the sustainable development of cities:
“The participation of citizens and local communities increases the legitimacy of projects, reduces social tension and strengthens long-term stability. In the near future, state funds alone will not be sufficient to solve the housing crisis. At the same time, private capital detached from public interests will also not be able to solve the problem alone.
The future urban development model will be determined more by the quality of relations between people, markets and institutions than by technology and finance.”
