As seems to be the case every year, strong themes clearly emerged at MIPIM. First and foremost, participants are looking for signs that the crisis days are over and that investors are once again willing to accept some exposure to real estate beyond the safest, core markets. Investors also want to know which opportunistic markets will benefit the most from the recovery, if and when it comes. And they want to know what lessons, if any, the industry has learned from the crisis experience.
The broad sentiment at MIPIM this year is probably best described as “cautious optimism.” As bearish as they sound about their own markets, European investors appear remarkably bullish about U.S. prospects.
He also offered this:
A near consensus also emerged among institutional investors that the basic investment model in real estate must change in the wake of the recent financial crisis. Capital losses of historic magnitude have prompted large investors to question past practices, demand significant changes in how they interact with partners and fund managers. Investors are demanding more control over how their capital gets deployed, more transparency, and are working harder to align incentives throughout the intermediation chain. A new and improved real estate fund model should result from this phenomenon.
To continue reading Prof. Quintin's outlook, visit the MIPIMWorld blog.
Wisconsin also contributed these posts:
- A Political Perspective on the Euro Crisis: Students and faculty from the Wisconsin School of Business are attending MIPIM 2012 this week. Bashar Elayyan reports on his experiences and takeaways from Day 3.
- MIPIM: The Students’ View: The Wisconsin School of Business gears up to cover MIPIM 2012.
For more of Wisconsin's Reporting from MIPIM here on the Wisconsin Real Estate Viewpoint, click on the "MIPIM" tag.