MIPIM 2022: Between desire and reality
More than 20,000 visitors came this year to the International Real Estate Investment Fair in Cannes on the Côte d'Azur. There were a good fifth fewer trade fair guests in and at the Palais des Festivals than at the previous event in 2019. After the euphoric high spirits three years ago, crises, conflicts and war as risk factors for the real estate industry now dominated many discussions on site.
MIPIM 2022 took place from March 15th to 18th – and it was far from the industry euphoria of three years ago under the impression of a conflict almost 2,000 kilometers away. While the Ukraine was at least visually represented with a mostly deserted stand, there was hardly a trace of Russia or Russian cities. Only a few obvious gaps in the trade fair room allocation indicated that there had also been cancellations at short notice.
Interest rates are rising again…
The industry buzzwords ESG, impact investing and interest rates were also part of the discussions in many places. From the Federal Reserve Bank in the USA alone, further interest rate hikes are expected this year, which would result in key interest rates of just under two percent at the end of the year. The market assumes that other central banks (UK, EU, CH) will follow suit, albeit with a time lag. For Switzerland, this means that negative interest rates will soon be a thing of the past. In the case of ten-year federal bonds, a value of 0.425 percent was already reached on the Wednesday of the fair (March 16, 2022) – a level that was last recorded at the end of 2014.
… and what next for decarbonization?
The topic of sustainable or green investments was also represented in many MIPIM panels and discussions. But even if there are now many options for measuring sustainability as well as certificates and labels: the coming years will challenge the construction and real estate industry on many levels. On the side of the energy sources alone, the change away from fossil fuels to renewable ones has added another dimension with the Ukraine-Russia conflict. It is now time to reassess the oil and gas factors in the real estate industry’s decarbonization efforts. It remains to be seen whether this will ultimately lead to oil and gas heating systems being discarded sooner in this country.
Farewell to old braids
Other significant changes are also becoming apparent in the traditional asset classes. The traditional real estate classifications such as residential, office and retail are becoming more diverse. This has already been shown in recent years thanks to online shopping, coworking and coliving. The hospitality forum on the Thursday of the trade fair, for example, showed that there is also something new happening in the hotel industry. Swiss Life Asset Managers announced the new camping investment class there and is even considering launching its own fund product in this area. In general, it can be said that the star classifications are becoming less important for hotel users, with the focus increasingly being on the extraordinary experience, special locations and trips close to nature and the local people.
Propel Awards for newcomers
The four winners of the PropTech competition Propel were also chosen this year at the real estate fair in Cannes: From the 20 finalists, centralF (optimization tool for workplaces) in the data category, Apricot (leasing for homebuyers) in the investment category, OakTree Power ( Demand optimization for building energies) in the sustainability category and Parametric Solutions (software solution for project developments) in the user experience category. A Swiss proptech startup was not represented in the global competition.
Swiss project wins MIPIM competition
On the evening of the Thursday of the fair, however, there was an award for an outstanding Swiss construction project: the Musée Atelier Audemars Piguet in Le Brassus received an award in the “Best Cultural and Sports Infrastructure” category. The museum extension designed by the Danish Bjarke Ingels Group (BIG) includes a new glass structure that integrates into the landscape by means of two spiral structures. Inside, the museum offers a glimpse into the history of watchmaking in the Vallée de Joux.
25th anniversary of Swiss exhibition stands
The two Swiss networks Swiss Circle for German-speaking Switzerland and Horizon Léman for western Switzerland also had something to celebrate this year. The exhibition stand organizers and initiators Roman H. Bolliger and Yves de Coulon were delighted to receive congratulations and two “birthday cakes” from the MIPIM organizer RX on their 25th anniversary. The handover took place after the MIPIM event “Forum Suisse”, where Swiss industry players from Swiss Prime Site, Mobimo, M3 and Wüest Partner discussed the topic of “mobility and its consequences for the real estate industry”. In 2022, more than 50 companies from Switzerland used the two trade fair platforms Swiss Circle and Horizon Léman for international exchange on the Côte d’Azur.