March 20, 2015  by

4 Things We Learned at MIPIM 2015

Last week more than 20,000 property developers, investors, architects and local authorities descended on Cannes for a week of networking, deal-making and partying at MIPIM, the largest property show on earth.

UK cities took centre stage this year, with London, Liverpool and Manchester all prominent at the four-day Palais des Festivals event.

Sir Edward Lister, the Mayor of London’s Chief of Staff, kicked off the event with the unveiling of the New London Model on the London Stand. The 1:2000 scale model covers 85 square kilometres of the capital, from Old Oak Common in the west to the Royal Docks in the east.

It’s been said that we do not celebrate our successes enough in the UK, but the New London Model, with its clear investment opportunities, sent a powerful message to attendees from all over the world.

Yet compared to the vast shadow created by Istanbul’s model, London’s looked distinctly modest. The Turkish capital sponsored this year’s event and did so in exuberant fashion, showcasing a colossal model of the city with a huge marquee accompanied by booming house music and glamourous guests.

A week on the French Riviera might sound like a lot of fun – and indeed it was! But for us, MIPIM was about much more than just soaking up some sun. Here are my main takeaways from this year’s exhibition.

Optimistic hope turns to reality

The mood of this year’s conference was optimistically buoyant compared to the cautious feel of recent years. European cities are building up, and with the UK boasting the largest number of delegates in attendance than any other country, Britain is truly leading Europe on the road to recovery.

The healthy take-up rates and speculative commercial investments were hard to miss, and showed a clear sign that developers are speeding up their efforts to build since the financial crash. The big schemes are now rolling, land is short and money is available. Joining the dots for investment is now the key.

Placemaking: the next challenge for the property world to master

On Wednesday, 11 March, CallisonRTKL Director Mahmood Faruqi joined planning experts in an EC Harris-sponsored panel on placemaking and public space.

With the abundance of conversations around how to make a space a place, it seems that most of the naysayers have finally been convinced of its social and commercial value. But while most now see its benefits, understanding how to successfully deliver it is a whole new challenge.

Yes placemaking is more than just a fad. And yes it offers real commercial benefit. But how public spaces work, how connections work and how to create value through spaces for exchange are next challenges for the property world to master.

There’s a better understanding of PRS in the UK

While PRS remains a buzzword to some, the overall feeling was noticeably positive. It seems that there is now a much better understanding that this is a viable market with genuine commercial opportunity.

And if the primary focus is on London, the north of England is now a red-hot topic as Manchester announced its plans to go beyond the last boom of new apartment construction with a more sustainable model that has PRS at its heart.

Developers and architects have spent years attempting to find the best ways to make PRS work. Those just dipping their toes in have a steep learning curve ahead, while those willing to brave the water will succeed with stronger rental yields, higher asset values and happier occupiers.

The focus on development has shifted from Russia to Europe

It was hard not to notice Russia’s absence this year. Last year, the country’s huge presence pretty much eclipsed all other national representations. This year, the focus has shifted to Europe.

Many Scandinavian cities were strongly represented while a number of newcomers from Central and Eastern Europe were more present than ever as they looked for investment partners and picked up tips from some of the more mature markets.

Elsewhere, Turkey earned a great deal of attention with its incredible growth story over the last 12 months that includes a new airport and a huge urban transformation project for the renewal of millions of aging buildings all around the country.

Real estate purchases by foreigners in Turkey rose by 41% in 2014. This impressive statistic was given a visual platform with an enormous 96-square-metre scale model of Istanbul which boasted the opportunity for more than €27.5 billion in new investments for the area.

We had a fantastic time at MIPIM 2015, met some wonderful people and made some truly memorable connections. Now everyone has finally caught up on sleep, replenished their stock of business cards and had time to reflect, we’re ready to take what we learned to make smarter decisions in 2015.

Cover Image via Flickr (MIPIM_World)

CallisonRTKL

CallisonRTKL

For more than five decades, Callison and RTKL have created some of the world’s most memorable and successful environments for developers, retailers, investors, institutions and public entities. In 2015, our two practices came together under the Arcadis umbrella, expanding our sphere of influence and the depth and breadth of our resources. Our team is comprised of nearly 2,000 creative, innovative professionals throughout the world who are committed to advancing our client’s businesses and enhancing quality of life.
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