MIPIM 2025: housing at the heart of the real estate industry’s concerns
From 10 to 14 March, Cannes will host the Marché International des Professionnels de l'Immobilier (MIPIM), the must-attend event for investors, developers, and key players in the property industry. In 2025, as the housing crisis worsens in Europe’s major cities, this issue is more central than ever to the discussions.
?? Housing, a major economic and social challenge
?The housing crisis is worsening in Europe: in 2023, one in ten city dwellers will be spending more than 40% of their income on housing, while prices have jumped by 48% on average since 2015, sometimes reaching more than 100% in some countries such as Portugal. This surge can be explained by rising construction costs, higher interest rates and insufficient supply, due in particular to the decline in new construction and the increase in purchases for investment purposes.
?? "We need to rethink our urban development model to meet growing demand while preserving the affordability of housing" says Nicolas Kozubek, director of MIPIM.
In response to this urgent need, MIPIM 2025 will open with a day dedicated to housing, bringing together mayors from major European cities, investors and public players. Among them, Sadiq Khan (London), Jose Luis Martinez Almeida (Madrid) and Roberto Gualtieri (Rome) will be talking to developers to identify solutions for more affordable housing.
?? "Housing must be an absolute priority. It's not just a market, it's a fundamental need", insists Laurent Vimont, Chairman of Century 21 France.
?? Olivier Wigniolle, CEO of Icade, agrees: "Real estate must be resilient in the face of economic and environmental crises. Building the city of tomorrow requires a sustainable vision".
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?? Investors and politicians: a necessary dialogue
A "Political Leaders Summit" is being organised to offer these decision-makers a platform for exchanging views on concrete strategies. "Historically, investors favoured other types of assets, such as offices, but this trend is gradually being reversed," observes Nicolas Kozubek.
The rise of teleworking and changing lifestyles post-COVID have profoundly redefined the priorities of the property sector.
?? "We're seeing a rebalancing: housing is attracting investors more, as it represents an essential need and a more resilient market over the long term." - Florence Semelin, director of the residential department at JLL.
However, Alain Dinin, Chairman of Nexity, warns of the risks of an even greater crisis if regulations and public policies are not adapted. ‘Without a massive mobilisation and incentives to get construction back on track, we run the risk of bringing the market to a complete standstill.
Nevertheless, the property environment remains complex. The war in Ukraine has led to a surge in construction costs in 2022, followed by a rise in interest rates, which is weighing heavily on the profitability of projects. In 2024, the European construction sector had a ‘disastrous year’, according to Bain & Company, particularly in the housing segment.
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?? How can we make housing more affordable?
To respond to market tensions, several levers are being explored at MIPIM:
? encouraging construction (intermediate housing)
? redirecting investment towards residential assets
? innovating with modular housing
? regulating speculative property acquisitions
?? "It is essential to rethink our financing models and promote the development of affordable housing for all," says Christophe Cuvillier, former CEO of Unibail-Rodamco-Westfield.
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??? A sector in transformation
Despite an uncertain economic and geopolitical context, property professionals remain convinced that innovation and adaptability are essential to overcoming the housing crisis. In the face of these challenges, MIPIM is showcasing innovative solutions, putting artificial intelligence, carbon neutrality and new forms of housing at the heart of the discussions.
?? "Technologies such as AI and data analytics allow us to optimise urban planning and develop housing solutions better suited to citizens’ needs," explains Thierry Laroue-Pont, CEO of BNP Paribas Real Estate.
?? "The future of real estate hinges on the integration of technological, environmental, and social considerations," adds Nicolas Kozubek, Director of MIPIM.
Mario Draghi, former President of the ECB, will be speaking on European competitiveness and its impact on real estate. As he has already emphasised in his report on the future of the European economy: ‘Investment in sustainable real estate is an economic and societal necessity to ensure the stability of our cities’. The sector is at a turning point: between economic difficulties and new opportunities, MIPIM 2025 should mark a turning point in the way Europe thinks about its real estate. One thing is certain: the issue of housing has never been so central.
?? How do you see the future of housing? What solutions do you think are best suited to tackling this crisis?