Submitted by Mark Farmer, EC Harris, Head of Private Residential
With the UK being the country of honour at MIPIM this year, unsurprisingly the conversations taking place are centred on the London market. Everyone I meet appears to be cautiously optimistic about the UK market, but in reality most of these discussions are regarding London activity and there is little conversation about regional UK development or investment.
I joined the panel discussion at the NLA stand at MIPIM this morning, to discuss the opportunities and challenges that are currently facing the London residential market. The discussion focused on viability and funding issues and ensuring the right product is placed, for the right market.
There is doubt over the sustainability of the rates of sales value inflation that we have seen in 2009/10. Traditionally, value growth has absorbed cost increase, manifestation of unforeseen risks or programme slippage. However, the degree of margin is decreasing and the emphasis will be on early certainty and adequate stress testing without assuming the historic levels of value growth. Please click here to download my viewpoint on the London prime residential market, where I have outlined the risks and opportunities London developers need to look out for.
What is evident is that as a consequence of the challenges currently facing London developers, there is a real need for specialist advice that will become even more of a pre-requisite. Market leading intelligence on the prime London residential sector and innovative approaches will help developers to beat the market and provide the means to create a deliverable development with confidence, control and certainty.