Thursday, March 18, 2010

MIPIM 2010: Core is king

Wisconsin Real Estate MBAs report from MIPIM 2010:

Panel: A Year of Reckoning—Emerging Trends 2010

The Pricewaterhouse Coopers Emerging Trends in Real Estate (Europe) report 2010 highlights the fact that there is cautious optimism in the real estate market, but we should “expect a long, slow haul.” Two major problems may hinder the pace of the real estate recovery. First, concerns over the overall economy and what will happen when state aid ends. Second is the massive amount of refinancing looming in the next few years, and a concern over how this debt will be dealt with. Core is king--it is better to keep it simple. Minimizing risk is imperative; therefore, investments should focus on these core assets in large and liquid markets.

European cities with the strongest acquisition potential are Munich, Hamburg, Paris, and London, while Moscow, Madrid, Barcelona, and Dublin sit at the bottom. While the possibility for development generally remains off the table, cities with the strongest likelihood for development include Istanbul, Munich, Hamburg, and Warsaw.

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