Embed Size (px)
Citation preview
The Winner Takes All?
Market-based Instruments for SustainableSpatial Development in Hungary
Erzsébet Beliczay and János PálBudapest, 08 July 2010
Some activities of the CAAG on spatialdevelopment and land use issues
• First international conference on the threats of shopping centres1991
• Recommendations on planning regulations of shopping centres1997
• Study about the real estate bubble together with the ITDP (New York) 1999
• Conference on Brownfield Reclamation (2001)• The need for social housing (GBR study, Hungary 2004)• The true costs of urban sprawl (study, 2006)• Evaluation of urban biodiversity in the 6th district (2008)• Urban regeneration in Budapest (study, 2009)• Economical instruments of sustainable spatial development (study,
2009)
THE OVER-DEVELOPMENT OF REAL ESTATE IN CENTRAL EUROPE AND
THE RISKS OF FINANCIAL CRISIS
A POLICY PAPER BY THE INSTITUTE FOR TRANSPORTATION
AND DEVELOPMENT POLICY DR.WALTER HOOK, EXECUTIVE DIRECTOR
NOVEMBER 29, 2000
http://levego.hu/sites/default/files/kiadvany/Hook-Banking1.htm
János Pál: The True Costs of Urban Sprawl
Clean Air Action Group 2006
András Lukács, Lázár Pavics:Tax fraud with car travelexpensesand other tricks
Lélegzet FoundationClean Air Action Group2007
Zoltán Szabó: Evaluation of urbanbiodiversity in the 6th district (Terézváros)
Lélegzet Foundation2008
Transition period 1990-2010• Municipal law 1990 (misused subsidiarity)• Buyers’ market (caused by peculiar Hungarian privatisation)• Weak institutional framework• Leakages in the legal framework• Lack of appropriate cadastral system and land register• Controversial land prices (brownfield vs greenfield areas)• Unripe financial market • Urban sprawl (polluted downtown, underfinanced municipalities,
inland migration, cheap land prices following the compensation, hidden subsidies on motorisation)
• After 2000: subsidies for housing without subjects to environmentalconditions
• After 2006: irresponsible access to credits and options for mortgage
Demonstrati
Demonstration against demolishing a 150-year-old house and replacing it with an 8+4 storiescondominium in the World Heritage puffer zone
Foto:P. KézdyUrban sprawl near Budapest (Budaörs)
Myths about the benefits of foreign real estate developments
• All the same what kind of foreign investmentscome to Hungary;
• International firms bring always high managing(working) standards;
• Investors leave for other New Member Stateswhen not getting the demanded priviledges;
• Proper regulation and long term planning are old fashioned tools from the socialist area.
Average payback of real estatedevelopment 1990-2000
5 years in the EU12 8 years in South America15–16 years in the EU15
Examples for failed regulations
The Tétényi plateau – an EU-wide uniquesteppe biocoenosis – belongs to 4 municipalities: The part in Budapest became a Nature Protected Area, theother municipalities converted their partsto built-in areas
The patterns of traditionallow density quartershave been destroyed
Poster made by civilians (demonstration against selling the park near a lake): Planned mall, parking place, new buildings, playgroundsThe only question left: Where is the (former) park planned?
Erzsébet Beliczay, János Pál:Economic Tools forSustainableSpatial Development
Clean Air Action GroupBreath Foundation2009
Proportional taxes, fees, chargesneeded
• Mining Fee for building materials• Depo (Waste Dumping) Tax• Soil Protection Fee• (Theoretical) Value of the protected plants and
animals• True costs of motorization (congestion charges,
road pricing)• True costs of the infrastructure on low density
suburban areas (investment + operational costs of public utilities and other services)
Very low mining fee
Landfill tax and compulsory in situ wasteselection needed
Theoretical evaluation of the protected plants animals and other natural values (landscape, relief etc.) needed
Demonstrationagainst building a new greenfieldcement factory (whileabandoning the old one nearby)
GOOD GOVERNANCE to internalise the external costs of real
estate developments
• 7 m2 new playing ground or park for eachnewly built apartment or office space
• Spatial Development Agreement• Sport Law (financing sporting facilities)
Only parking placeshave to be disposedat new buildingsaccording to theHungarian building regulation.The poster’smessage: 7 m2 newpark, playing groundhave to be createdfor each new unit (flat, office or retailspace)
In some districts of Budapest there is less than1 square meter public green areaper capita left for the inhabitants.
Sounds like a tale but true:A Hungarian enterpreneur established an IT developmentcentre. He erected voluntarily a bigger green park among theoffices than the zoning minimum. He told that the costs of maintaining the park is about 4% of the costs of wages. But theemployees appreciate the parks more than a small rise of theirincomes.
The winner takes all?
Hidden subsidy for developers: unexperienced governance is unable
to protect the common interest.
One reason of theweak HungarianFootball
More than 68 big sporting facilities disappeared from
Budapest since 1990The privatisation is a hazy period of recent history. Public assets often landed in private hands without control (because of unripe governance). The sport grounds of the state owned factories – as they had
the same topographical register number – were sold „in package” with the production sites and later were converted into dog training centre,
parking lot, petrol station, residential park, shopping mall etc.
Gyula Grosics (team fellow of the legendary Ferenc Puskás) andAndrás Lukács (CAAG) with local sport managers demonstratingagainst closing a football playing field at Őrmező (Budapest)
