Investor optimism, the need to adapt to technical innovation and to plan for an increasingly urban future were three of the key themes for the 26,000 real estate, city and political leaders who attended the Mipim real estate in Cannes on the French Riviera between 13 and 16 March.
Some 5,400 investors from over 100 countries were among the attendees at Mipim, one of the world's largest international real estate business, conference and networking events.
Event organiser Reed Midem issued a round-up report on Mipim on Friday, highlighting the key themes.
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Key takeaways
Among the key talking points in Cannes were the growth in real estate investment expected this year, urban development, the move to target cities rather than countries in investment strategies and how tech is now being more fully embraced by real estate companies.
Mipim delegates settled down for the week’s intensive business and networking against a background of relative industry optimism for the upcoming year. In its annual ‘Global Investment Atlas 2018,’ Cushman & Wakefield noted that a strong global economy across all markets will encourage investors to release more funds into real estate this year compared to the record $1.6 tln in 2017.
Cushman & Wakefield reported that Asian investors were particularly active in 2017, increasing their investment in Europe by 96% year on year. Investment from Asia Pacific to Europe hit $39.5 bn (then about €33 bn) in 2017 compared to $20.9 bn heading towards the Americas. The Asian delegation at Mipim was drawn from 15 countries.
In its annual EMEA Investor Intentions Survey, released during Mipim by CBRE, the world’s largest commercial real estate services and investment firm noted that 33% of investors intend to deploy more capital in 2018 than last year, with 70% of investors actively pursuing alternative assets. In the alternatives sector, investment volumes have risen 45% in the last 10 years to hit €23.6 bn in 2017. Among the assets drawing strongest investor interest are student housing and retirement living.
CBRE confirmed that 2017 was a record year for real estate investment in Europe with volumes totalling €291 bn.
The report said that for European investors the most sought-after real estate assets are industrial, notably logistics. CBRE noted that is the first time industrial has overtaken office investment and the interest in logistics clearly reflects the growth in e-commerce.
