Mipim may be celebrating its 20th anniversary this year, but for the real estate industry on which it is dependent, that is little cause for cheer. Hit by the full force of the economic recession, investors, developers, occupiers and brokers everywhere are rolling out survival strategies to get them through what looks set to be a prolonged downturn.
Mipim may be celebrating its 20th anniversary this year, but for the real estate industry on which it is dependent, that is little cause for cheer. Hit by the full force of the economic recession, investors, developers, occupiers and brokers everywhere are rolling out survival strategies to get them through what looks set to be a prolonged downturn.
As a result, belts are being tightened, excess fat trimmed - and importantly for Mipim - trade fair budgets cut. Almost without exception, companies are sending smaller delegations to Cannes and scaling down their activities at the fair. Leading brokers Jones Lang LaSalle and King Sturge are halving their delegations to around 100 and 30 representatives respectively compared with last year. Although both companies will host a stand, they claim their budgets have been significantly reduced compared with 2008. UK broker Savills will likewise send fewer delegates and has pared down its budget. It will be entertaining guests by invitation only at Savills Cafe on Croisette Corner.
The picture is no different for other industry players. ING Real Estate, one of the world’s biggest property companies, is cutting its delegation by 75% from 120 last year. The Formula 1 sponsor will not be holding its traditional ‘Formula 1 experience’ on the beach or welcoming guests aboard its three-master yacht Oosterschelde. Meanwhile, a number of Russian developers – including Mirax Group, Don-Stroi, AFI Development and Penny Lane Realty - have cancelled their stands this year as projects are put on ice.
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