The mood at MIPIM 2018 is remarkably positive, and it has almost nothing to do with the typically sunny weather. If anything, it feels extremely similar to the 2017 edition, though most people we’ve spoken to believe that real estate investment will fall slightly this year in terms of volume and that it will take more work to get there. Where economists see warning signs in rising labor costs, retail developers and investors see higher consumer spending, which industrial investors interpret as continuing demand for new warehouses. The weather for tomorrow looks doubtful with rain predicted, but the hundreds of CEE MIPIM attendees will be taking full advantage of their lunch invites along the beach. Expect the same behavior from investors in 2018 who plan to be as active as possible without worrying about predictions of a slowdown in 2019. Anyone who was walking along the Croisette back in 2007 and 2008 will agree that the credit-fueled excesses of that era looked very different. Today, optimism from investors and banks always seems to come with doses of caution.
