Confidence the Keyword at MIPIM 2010

Delegates walked away from this year's MIPIM with a spring in their step after a positive few days in Cannes

The 18,000 delegates from 81 countries who attended the 21st MIPIM event in Cannes must have walked away with a spring in their step, with the words “investor confidence” and “ambitious project presentations” from major city delegations ringing in their ears. It seems that definite signs of an improvement in the property market have been detected, with real estate services firm, Jones Lang LaSalle, predicting that European transaction volumes will increase by as much as 30% in 2010. Cushman & Wakefield research, which was conducted in 56 countries, also predicted a 30% increase in investment, with China heading the list of investment destinations.

CB Richard Ellis released the results of a survey of 270 European real estate investors, in which Europe was identified by 60% of investors as their main target in 2010, with Asia also figuring strongly. Properties in the United Kingdom, mainly in London, are of particular interest, however, due to the limited supply, equity-based buyers are looking to other major European cities, particularly in Germany and France.

Among the 1,118 investment companies at MIPIM - an increase of 10% on 2009 - 180 were attending for the first time, among them two major sovereign wealth funds - China Investment Corporation and Mubadala Development Company (Abu Dhabi). Both were at MIPIM to identify new international investment opportunities.

Renewed banking activity in property was also evident, with international bankers discussing and evaluating their strategy for releasing prime properties currently on their books. BNP Paribas Real Estate announced an extension of its international coverage, with alliances in Poland, the United States and Switzerland, to provide full real estate consultancy, leasing, investment and project management services.

Amongst major new and on-going property development projects on show, one of the largest was Daniel Libeskind’s Seoul-based Yongsan International Business District. From Egypt, the launch of Zaha Habib’s Stone Towers business park on the outskirts of Cairo was announced, and from the Middle East, there was the €1.8 billion residential, commercial and retail Bahrain Bay project.

Poland was MIPIM’s 2010 Guest of Honour, and, as co-hosts of the UEFA Euro 2012 tournament, the country’s real estate sector has received a major boost from infrastructure, tourism and stadium projects in host cities Warsaw, Poznan, Wroclaw and Gdansk.

The United Kingdom will be MIPIM’s 2011 Guest of Honour. Boris Johnson, Mayor of London, was present to promote investment opportunities in the British capital. “I’m delighted that the choice of ‘Country of Honour’ has been bestowed on the UK for next year’s MIPIM,” he said. “UK cities, led by London, play an enormous role in MIPIM’s success each year.”

Brussels scooped most of the awards for building projects, including the Special Award of the Jury, which went to Square Brussels Meeting Centre. Poland’s andel’s Hotel in Lodz received the jury’s Special Tribute.

Gilly Lloyd