25 years of MIPIM. Five years of suppression. All that came to an end this week, as the mood in Cannes grew exuberant. Over exuberant? Perhaps a little. But better the sunshine of this year than the hailstones of last.
There was no shortage of activity this week, and no shortage of positivity either. And for the first time in some years, it didn’t feel artificial. These 10 highlights make the point.
1. The lexicon has changed. The “cautiously” in “cautiously optimistic” is a thing of the past. Or not a thing for now at least.
2. UK local authorities were out in force and receptive to doing business. From London to Coventry to Manchester, a willingness to use the private sector to deliver public sector ambitions was evident. The regional showing was encouraging from a national recovery perspective; so busy was the Manchester stand at some points that it was simply impossible to get on.
3. The housing crisis in London and the South East may never be solved, acknowledged Residential Land’s Bruce Ritchie. It was less a cry of despair and a more a sensible acknowledgement of the importance of setting achievable targets.
4. MIPIM works. There was no shortage of private wealth strolling the corridors – from China, from the Middle East and from Russia. The sorts of enquiries that don’t routinely cross agents’ desks back home simply arrived unannounced at many stands.
5. Speaking of Russia, there is already evidence of the market impact of the political uncertainty gripping the country and Ukraine. I heard of a number of deals between Russians trading Russian assets that have fallen out of bed because of the uncertainty. There was much talk too of money leaving the country looking for security elsewhere and a significant slowdown in investment enquiries for inward investment.
6. Property is at last being taken more seriously in government. Regeneration stalwart Jackie Sadek has been appointed an adviser to cities minister Greg Clark, evidence (hopefully) that he wants to ensure property’s voice is heard as he and Lord Heseltine seek to hand out as much as £10bn through the regional growth fund.
7. Speaking of politics, Boris’s decision to come was the right one. It emphasised that some things are more important than perception. He may have been among the yachts and champagne of the South of France – which often plays badly with the electorate at home – but it was to source investment to deal with the housing crisis in the South East. He will need to point to MIPIM-delivered successes when the investment flows.
8. It doesn’t matter who owns UK land and assets as long as they are being deployed in the right way. That requires occupation of London flats – whoever buys them. The mayor announced that scores of developers had signed up to a concordat pledging to sell resi developments in London to Londoners first. It may have been more symbolic than enforceable – and more about politics than practicalities – but it will (again, hopefully) steer that debate in the right direction.
9. A celebrity helps. Last year’s star was Brian Cox; this year’s was former Manchester United and England footballer Gary Neville. If you can’t do celebrity, do technology. Canary Wharf Group, via its Level 39 tech accelerator space, led on that front. It sent a robot around the London stand and a head-turning drone – yes, a drone – above.
10. Is it all too far, too fast? The capital markets always lead the occupancy markets, of course, but concerns cropped up in many of my conversations over the week that the gap is too wide. A narrowing over the next 12 months will make us view MIPIM 2014 as a turning point. But should the gap widen, we might remember this point in time as a blip.
For all our coverage of MIPIM 2014 – including an archive of all Estates Gazette’s debates – go to www.estatesgazette.com/MIPIM
