Representatives from across the industry enjoyed the warm hospitality of M&G Real Estate at their offices in Grosvenor Place on Thursday 10 November. It was an excellent location to launch this years report on Emerging Trends in Real Estate, an investigation lead by the ULI and PwC.

This year’s report encompasses perspectives from across the industry, not just the views of investors and lenders. As such, it was encouraging to see so many faces from all across the industry in attendance.

This diversity was represented on our panel too. On stage for the evening was Francois Trausch, CEO at Allianz Real Estate, Madeleine Cosgrave, Managing Director & Regional Head of Europe of GIC, John Barakat, Head of Real Estate Finance at M&G Investments and Ross Bailey, CEO of Appearhere.

Mike Philips from EuroProperty embraced his duties as the evening’s MC. He nurtured a perceptive discussion between the four panellists, none of whom were shy in probing at the reports key findings and enlightening the audience with their own experiences.

The impact of technology on the industry was a constant touchstone for respondents to the survey. As Director of a European property developer remarked to the report: “Our biggest competitor or threat is a company that we do not know yet, which could be two friends working together in a garage.”

For real estate investors this means incurring greater operational risk. All in all, the report has wrought more questions than it has answered. Is industry prepared to innovate? Are we seeing a period of adjustment?

Much of the interviewing for the report was carried out in July following the EU referendum result. Geopolitical challenges and political uncertainty rank high in the key risks identified by respondents, especially in Europe.

There was no avoiding the elephant in the room on Thursday evening. A day after President Donald J. Trump became a reality, our MC Mike had to dive straight in.

What will a Trump administration mean for real estate investors?

Francois chuckled. He’s been pushing for more Allianz investments in the United States since he began in January: “Hopefully not much.

In fact, the reaction on real estate has been generally positive. Maybe because Trump is a real estate man himself?”

More likely, Francois proposed, it is that real estate is seen as a safe haven. A safe haven in a world faced with a Bonfire of Uncertainties as the FT’s John Authers wrote in the cold light of day on November 9. The panel agreed the United States would continue to be a strong and attractive choice. Geopolitical worries remain focused on Europe at the moment, with upcoming elections in France, Germany, and the Netherlands.

Emcee Mike Phillips craftily swooped in before we all lost ourselves totally in considering the existential crisis of the Western liberal economic order, perhaps wisely.

Getting us back on track, the panel challenged the merits of London’s apparent fall from grace on the report’s investment sentiment scale. From 15 to 27, London finds itself just above Moscow, Istanbul and Athens. This seemed ill deserved as London continues to hold its own amongst the top five global cities in the world.

Attendees to the event encouraged some excellent conversations. The panel discussed how cities like Manchester benefit from trends in globalisation, ‘real estate refugees’ looking for low-risk investments, the conditions that co-working spaces require and much more.

Undoubtedly, it is the direct input from across the real estate industry that sets the Emerging Trends in Real Estate 2017 report apart from the rest. In that sense, it was fitting that the direct input from Thursday’s attendees and panellists made the event such a success.

Download the report here: 2017 Emerging Trends in Real Estate – Europe

Author: Freddie Daley, Blackstock PR