President Donald Trump, trade wars, and a potential ceasefire in the Russia-Ukraine conflict were key topics at MIPIM, the real estate conference in Cannes that drew 25,000 delegates last week.

The real estate industry is eager to invest again after a few sluggish years caused by rising interest rates. Bisnow’s Mark Faithfull reports that Savills predicts €50 billion of European real estate will be traded in Q1 2025, marking a 28% year-over-year increase. However, political uncertainties regarding Russia, Ukraine, and tariffs are making investors cautious, particularly those from Asia and the U.S.

Retail sales have also shown weakness, increasing only 0.2% in February, below expectations. Construction material costs are rising sharply, and tariffs are expected to increase construction prices further. Manufacturing activity is declining, as highlighted by a significant drop in the Empire State Manufacturing Survey.

Companies are stockpiling in anticipation of tariffs, indicating a shift from recent years of growth in American manufacturing. Although the CHIPS Act has boosted industrial space, Trump has suggested repealing it, with Congress not yet taking action.

Source: Bisnow.com.

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