In recent years, MIPIM (the international market for real estate professionals and investors) has become an event impossible to circumvent for players in the Luxembourg real estate market. The 18th edition this year occurred from 13 to 16 March in Cannes. Following the strong interest encountered in 2006, the CC (Luxembourg Chamber of Commerce) again set up a national stand with 17 participants.

Carlo Thelen, CC, Head of the International Department, says that they entered into MIPIM in cooperation with the Ministry of Economy and Foreign Trade in 2006 under some pressure of members who thought Luxembourg should have a presence, but, "it is a great opportunity and it was a common decision." It is the Chamber's job to help promote Luxembourg businesses, but he says they cannot just go and enter into any engagement. "There are financial risks and costs. We must assess if it is worth it and analyse the opportunities." Participation is one third paid for by the CC, one third paid for by the Government and one third paid for by companies. "People tell us it was a great success."

What does success mean? "I think they did well to promote this fair. Esch Belval, Luxembourg City and Dexia are all projects that were driving forces. Both Minister Jeannot Krecké and City Mayor Paul Helminger made appearances at the event this year and last. It was a success to be visible there and to get good feedback and contacts."

MIPIM bills itself as the "world's premier real estate summit", bringing together influential decision makers in the market and offering them access to the largest available showcase of development projects. In 2006, there were 21,415 participants, a 21% rise from 2005; 5,063 end-users and investors and 2,277 exhibiting companies from 74 countries spread across an exhibition area of 20,743m2.

The annual event takes place at the Palais des Festivals in Cannes. Luxembourg also participates at Expo Real in Munich, which, in 2006, attracted 1,638 exhibitors from 40 countries. "MIPIM is a little less business but there is more to go to," says Thelen. "Expo Real is more business orientated to the German market and eastern countries."

For the CC, it is important to defend the general interest of the Luxembourg economy. "The CC wants to attract members but the members do not necessarily want to attract competition." Therefore, the CC must be careful when it represents and promotes Luxembourg companies, products and services, organisms, etc. "We need to find the right balance between what we promote and what we attract," says Thelen.

"Dependent on international activities for growth"

"The real estate industry is going very well. The take up is very good and the number of vacancies is lessening. We have the stability of the European institutions, the growth of the financial centre and Big 4 companies looking for more impressive addresses," says Thelen. "But the Luxembourg real estate market is very dependent on international activities for growth. For example, for a project like Belval or for the Porte de Hollerich, marketing is very important. There is a lot of potential there."

Thelen says it is not enough just to have good projects. Good presentation is essential. To this end they changed their stand this year to include a VIP lounge, flat screen TVs, power point presentations and a more homogenous marketing. "We tried to convince the companies that they don't just come to the stand to market themselves alone."

Vincent Bechet (Property Partners) is a seasoned veteran at Cannes. "When I first came, seven years ago, Luxembourg had maybe ten representatives, now there are more than 100 people here from all aspects of the real estate industry." Bechet says that the objective is not to do business there on the spot but to make good contacts and to promote specific Luxembourg projects, which are very interesting to international investors. "Every major city in the world is here," he said. "The Russians are here in full force. Dubai has an incredible stand." He did say, however, that Luxembourg received plenty of attention. Sabrina Sagramola (CC) said, "Yesterday's Luxembourg reception was a big success. We ended up by having more than 150 companies on our stand."