TRENDS:GUESS WHAT the main topic of conversation at this week's property jamboree in Cannes – attended by 20,000 property bosses, advisers and bankers – is? The worldwide recession has not only cut the attendance at MIPIM to its lowest level for years but forced many of the players to think twice before making major business commitments.
With new developments and property acquisitions at a virtual standstill in many countries, the mood in Cannes yesterday as the four-day festival got under way in earnest was more sombre than in recent years. The event had gained a reputation for lavish parties in hotels, nightclubs and yachts, or at the very least a champagne lunch or two.
The entrance fee to MIPIM is famously huge and this year some of the two dozen Irish representatives in Cannes didn’t bother to pay the admission fee of €1,300 for the event, opting instead to stay on the fringes, where it is just as easy to meet business contacts and potential tenants. In previous years, the Irish contingent would have higher numbers, with some developers using their helicopters to ferry clients around.
Some of the major international players cancelled stands and reined in hospitality budgets because of the deepening recession and the banking crisis.
In other years, the formal event was almost a sideshow to the parties held by the deal brokers and property barons. The banks, normally among the biggest entertainers, were keeping a low profile yesterday, not wishing to be seen to be spending the now public purse.
A great many of the delegates are looking for MIPIM to provide answers to some of the major issues facing the industry, including: how bad will 2009 be? When will we reach the bottom of the property market? Is there any sign of liquidity returning to the market? Who has money to spend and where do they want to spend it?
Some good news came yesterday from the UK, where estate agent Savills suggested that investors may start buying UK homes and commercial property again this year, as sharp price falls and sterling’s decline make the market attractive once again. The same cannot be said for Dublin just yet.
