1. Namn Efternamn, 2015-09-14, Plats Impact on macro economy of an efficient Land Administration WPLA workshop in Athens 2012-12-13 Roger Ekman Lantmäteriet, Sweden

2. 2015-09-14 2 Cadastre and Land Registry The importance of systems for registering changes in ownership/tenure is well known Fundament of the market economy Secured tenure is necessary for will to invest in improvements Secured ownership to land as collateral for credits

3. 2015-09-14 3 Just to have or have not? Effects on the economy What is in between? Have Have not LA efficiency Where in the economy?

4. 2015-09-14 4 Where do we find the effects? What is the impact on the economy of a more or less efficient Land Administration? How is the property market affected? Is the enterprise in general affected? What are the consequences on the public finances? Can we estimate the effects in numbers?

5. 2015-09-14 5 The property market Interest expenses A registered property often serves as a collateral for credits financing the conveyance, without this collateral you may have to pay higher interest rates due to bigger risk. (0,01% of 22 billion is 2,2 million) Missed opportunities During the period of registration the conditions for the market will change, to the better or to the worse. If your purchase is motivated by a certain market situation, you are likely to make a loss. Slowdown With more expensive and time consuming transactions the property market will work at a lower pace € 22.000.000.000 Value of transactions per year:

6. 2015-09-14 6 The enterprise in general An enterprise that undergo a change will probably need to adjust its property use. A slower working property market will delay the enterprises adaptations to changes in demand, rationalization etc. High transaction costs will work in the same direction. In the end, decreased competiveness. Market value of real property: € 1.000.000.000.000 Volume of GNP: € 430.000.000.000

7. 2015-09-14 7 The public finances The income and company taxes are proportional to the competitiveness of the enterprises and thus their ability to employ people. The property taxes will increase with higher values on properties The conveyance of properties is taxed and a delayed transaction will cause interest expenses for the state (€ 100 000 per extra day) Volume of state and municipal taxes: € 200.000.000.000

8. 2015-09-14 8 Conclusion The Land Administration’s level of efficiency has a large impact on a nations macro economy, and not only the property market Land administration regulations, procedures etc should above all be designed to facilitate secure, simple and fast conveyance of property The costs for not having straightforward cadastral and land registration processes are immense A research project is discussed in Sweden to quantify the effects !