Rhona Wells reports from the South of France
The 27th edition of MIPIM, organised by Reed Midem, saw real estate executives and investors expressing a mixture of optimism and caution over the state of the global market. However, while there are variations by territory and asset sector, the overall picture for 2016 is positive.
The real estate market saw a surge from 2010 to 2012 and is currently experiencing a slow down owing to the various geopolitical factors at play. The ones most frequently cited are the slow down of the Chinese economy, the turmoil in the Middle East, Brexit (the UK potential exit from the EU) and the "Trump factor" in the US.
One of the most striking aspects of this year's MIPIM was the plethora of senior politicians in Cannes, including French Economy Minister Emmanuel Macron who inaugurated the event. Bringing together the largest single gathering of international investors (over 4,800), alongside developers, end-users, architects, hotel groups, public authorities, tech specialists, startups and property associations, MIPIM is perceived as a unique opportunity to conduct business, network and discuss the major issues facing both urban and real estate leaders. MIPIM 2016 attendance rose 10% compared to 2015, up to 23,500.
Robert White, founder and president of Real Capital Analytics reported that commercial property transactions in 2015 totaled $1.3 trillion, up 5% on 2014. Interestingly, research shows that international real estate investors are diversifying their portfolios to include such 'alternative' investments as healthcare, student housing, hotels, residential rental and retirement homes.
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