Thank goodness for that. The slightly conservative event that MIPIM has been over the last couple of years has seen a boost again this year with a much larger Russian contingent. This market has its obvious attractions of strong growth and scalable city markets market. Russia has attracted cyclical investment to date from a limited investor base, however we believe this year will see investors taking significant positions in what is Europe’s most accessible BRIC economy. Similarly Turkey, ULI’s number one investment destination in 2011, exhibits the same growth characteristics and a burgeoning real estate sector.

Both these markets appear to have appeal for return driven investors, however the principal challenge in terms of further internationalisation of the market and real delivery on this appeal, would appear to be to avoid the “all that glitters is not gold” analogy. As we have experienced in these markets the biggest tangible risk is vendor related, with irrational pricing decisions, unappealing ownership structures as well as inconsistency in technical and legal aspects, the reward is clearly not without risk.

However we believe that now is the time for these markets, having missed out during the last cycle. More challenging is the business case for the North African markets, many of whom must have taken up the MIPIM early bird booking form! Many projects in this region are now looking extremely ambitious from a financing perspective however we have been reassured that as things settle in these economies and the outlook becomes clearer, occupiers and developers are poised to take advantage of the latent potential of these underdeveloped markets.

The great news is that we have real strength in Russia, Turkey and indeed the MENA region so wherever the action is we will be there.

The re-internationalisation of the market continues with an increasing presence of American, South Korean, Kuwaiti and Qatari investors.  I have witnessed a new trend in the market as German open funds, traditionally highly active in the acquisition market, have increased their disposal activity, accelerating the natural rotation of their assets.  This is being attributed to the effects of a booming market or to a real need to generate liquidity.  As a result these funds are net sellers for the second time (2006 being the first time this was observed).

Insurance companies and pension funds seeking returns more lucrative than government bonds are particularly active too.  French REITs have made the most of the market conditions as well. Private investors have reinforced their strong positioning regarding secure assets of between 5 and 30 million Euros. Opportunistic and value add investors are progressively coming back, even if many have confirmed to me that they are being held back by a lack of supply adapted to their business models.

On the demand side, I think that French investors – fuelled by an improvement in their capacity to invest – and to a lesser extent by German investors, will constitute the core of the market. Considering available assets, I am betting the high level of demand we have witnessed in 2010 will remain stable.