Market Looks To Future At MIPIM 2013
CANNES, France, March 19, 2013 /PRNewswire/ -- Some 20,000 international real estate executives from 79 countries defied the inclement weather which hit travel infrastructure across northern Europe this week to attend what many described as the most active MIPIM since the 2008 economic downturn.
With research from leading property consultants and services companies indicating that new capital is coming into the market, international cities, companies and regions used MIPIM to promote themselves to the 4,300 investors in Cannes.
One of the hot topics on the exhibition floor at MIPIM was the changing nature of investment strategies and vehicles. According to KPMG research, pooled funds are back in favour and are now considered as attractive as direct holdings/separate accounts. KPMG's Partner and Head of Real Estate, Stefan Pfister, shared the data with delegates attending the second edition of the RE-Invest summit at MIPIM.
"RE-Invest has established itself as an important part of the MIPIM menu," reported MIPIM Director Filippo Rean. "This year, we have welcomed a record 60 pension and sovereign wealth funds to Cannes."Information released by real estate services and consulting specialists DTZ during MIPIM, indicated that some €253 billion of new capital will be available for investment in commercial property this year, with €63 billion targeting Asia Pacific. Cushman & Wakefield's European Real Estate Lending Survey predicted that capital available for European real estate lending in 2013 will be 22% higher than last year and global property advisor CBRE identified Germany as the number one target for European investors and London as the most attractive European city. In 2012, London recorded its highest volume of transactions since 2007, according to CBRE, with the majority of purchases coming from cross-border investors. Returning to MIPIM for a fourth time, Mayor of London, Boris Johnson, unveiled ambitious plans to create Britain's largest 'floating village' in a 6-hectare site at London's Royal Victoria Dock. In a tour de force keynote address, Johnson challenged investors to come up with spectacular designs for the project. Boris Johnson was one of a host of mayors from major international cities who were in Cannes. Among them, Mayor of Moscow, Sergey Sobyanin and Mayor of Istanbul, Kadir Topbas representing two cities that feature prominently on investors' radars and which are currently making strenuous efforts to facilitate cross-border investment. Flying the French flag, a raft of new and on-going projects in Paris, Lyon, Bordeaux, Marseille, Lille, Grenoble and Nice were on display, with two of the country's most emblematic political figures, Mayor of Lyon Gerard Collomb and Alain Juppe, Mayor of Bordeaux, actively promoting new development in their cities to international investors. "As Boris Johnson said in his keynote address, cities are once again seeing their skylines dotted with construction cranes. This has been reflected by the number of new projects presented at MIPIM, not just from Europe, but also from Asia and a growing representation from such Latin American countries as Brazil, Chile and Argentina," noted Filippo Rean. During a MIPIM conference devoted to ' Brazil: new grounds for development,' shopping centres and logistics were identified as prime investment targets, particularly in Rio de Janeiro, with international investors being advised to partner with local companies. Brazil is set to feature strongly at MIPIM 2014, alongside Russia and Turkey, as part of next year's 'Key Investment Destinations' programme. "This year we featured Turkey as MIPIM's Country of Honour and were proud to welcome Deputy Prime Minister Ali Babacan and 190 Turkish companies to Cannes," commented Filippo Rean. " Istanbul is attracting incredible investment interest. The country has a young population, predicted GDP growth of 4.3% in 2013 and a fast-developing retail sector. Instead of choosing a single Country of Honour in 2014, we want to provide a window onto Turkey, Russia and Brazil." For John Forrester, DTZ's Chief Executive, EMEA, " Turkey was a great choice for Country of Honour. What we have seen at MIPIM this week is that investors in particular are looking for new opportunities and to increase their understanding of markets beyond well-established territories in Europe." Reflecting the continued debate on the future of cities and the role that new technology will play in urban planning and property construction, the inaugural MIPIM Innovation Forum (MIF) brought together leading international architects, tech companies and major end-users.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts