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Ulviyya Poladova

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At the panel discussion “A New Deal for Housing Finance,” Executive Director of UN-Habitat Anacláudia Rossbach stressed that sustainable housing solutions cannot rely solely on international assistance, arguing that strong domestic finance systems are essential to solving the global housing crisis, AzerNEWS reports.

Rossbach highlighted that one of the most important questions governments must answer is what exactly they are financing and how societies choose to address housing challenges.

“The important aspect is what we are financing, and to agree with society how the housing crisis will be addressed," she said.

According to Rossbach, land remains one of the biggest barriers to affordable housing worldwide. As urban land becomes increasingly expensive, especially in central city areas, governments must adopt smarter planning instruments and land policies.

"We talk about integration, overcoming segregation. Building in central areas is much more expensive," she noted.

Rossbach emphasized the importance of reserving land for housing, using underutilized urban spaces, and recycling existing buildings where possible. Public land, she explained, can dramatically reduce housing costs.

The UN-Habitat chief also underlined that countries must develop long-term domestic financing mechanisms rather than depending on external funding.

"No country has been able to address housing in a sustainable, long-term way with international finance. It is domestic finance," she stated.

Rossbach cited several international examples. She pointed to China, which lifted hundreds of millions out of poverty through large-scale housing development financed domestically. She also referenced post-war Europe, where reconstruction initially benefited from the Marshall Plan but later relied on self-sustaining financial systems.

"We can count on some seed funding that comes from outside to start the process, but we need to build robust housing finance systems," Rossbach concluded.