Brett Alegre-Wood reports for PropertyGuru from the second day of MIPIM, the annual conference for the world’s property industry.
Day two at MIPIM in Cannes, France, was a mixed spread of other U.K. cities, all bidding for recognition and investment. It’s clear to see that confidence in the U.K. economy has spread to all major cities across the country. Manchester, Derby, Nottingham, Birmingham, Leeds, Bristol, Liverpool, Newcastle and Sheffield all showcased what they each have to offer.
Having spent the past 12 years selling residential property, and in particular regeneration areas, I was impressed to see how all of the cities have clearly identified their unique factors, and how they are going to attract the kind of investment that’s required to undertake the many ambitious programmes they have planned.
It’s very easy to overlook anything outside London, but if today has shown me one thing it’s how the major cities are ready for what amounts to massive regeneration – the likes of which have not been seen since the end of the Second World War.
What was a strictly a London affair for international investors is fast becoming a London and major cities. I have been saying for the past five years that investors should look at London and the 13 university towns and cities. Today I saw nine of these make a strong case for investment. Each has multiple universities, and they are working closely together to ensure that graduates can get the appropriate jobs. Retention of students who become workers in the area is seen as a key fundamental. All have a very clear understanding of their unique attributes and are focusing on these. All of these cities mentioned know that foreign investment is crucial, and all now have the plans in place to attract it.
It was interesting to note that all are defining themselves in terms of the knowledge economy; this sector is expected to outperform the wider economy.
GVA (www.gva.co.uk) has published a report called ‘Thought Leadership – Driving future growth: Core Cities and the knowledge Economy’ which outlines the key focuses for each of the core cities. Not surprisingly, a big focus is advanced manufacturing, life sciences and transport – areas in which so many of these cities already excel.
Representatives of each of the cities talked about the importance of employment clusters or hubs, as well as city centre living, so for residential investors this means massive opportunities.
I got a real sense from the presentations that the U.K. is back. It has shaken off the recession, put it behind and now has a clear plan of where things are going. The plan has both public and private support, and I have no doubt the build environment in all of these cities will be very different in the next five to 10 years. They are ripe for investment.
For international investors who are looking to invest in London, but who may be feeling it’s a bit hot, the U.K.’s core cities are definitely an option on the table now. The one thing that may hold investment back is the absence of mortgages, however for many the prices are cheap enough to buy in cash and enjoy high yields of up to 10 percent.
MIPIM, the world’s property market, brings together the most influential players from all international property sectors. The 2014 event is taking place in Cannes, France, between March 11 and March 15.
Singapore-based Brett Alegre-Wood is an author, entrepreneur and property educator. He is the founder and Managing Director of Your Property Club and author of The 3+1 Plan, winner of the 2010 People’s Book Prize. www.ypc-group.com
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