Despite The Times' report of property billionaires soaking up the sun on the Croisette in Cannes (never let the truth get in the way of a good story), MIPIM this year was cold and wet and it snowed! However, the chinking of beer bottles outside Caffe Roma was not to be dampened, and it is generally felt that there were slightly more people at MIPIM this year, and slightly more enthusiasm for the direction the property market appears to be slowly moving in, depending on which journalist you wish to follow.
It would seem that the capital markets are prepared to lend again, and sovereign wealth funds are showing interest, although much of the interest is focused on London with the rest of the country continuing to find life hard. The TMT (technology, media and telecoms) sector is also receiving a lot of attention which is creating interest around the Liverpool Street area and East London, Shoreditch and Kings Cross/midtown areas, but also with predictions of growth in university towns where there are bright innovative people living and working.
As for the residential market, which continues to receive a range of press reviews, there are concerns whether high end residential developments are just past their peak, with a degree of soul searching as to whether we should be converting all our commercial excess space into residential accommodation, and the economic impact of selling to absentee owners from the Far and Middle East. Outside London the commercial to residential debate is not an issue with low levels of demand.
All in all MIPIM yet again identified the trends within the property sector, and Boris Johnson promoted London in his very unique way. We continue to find the week rewarding from the point of view of meeting our clients and underlining that Smith & Williamson are serious about property, and building new contacts.
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