MIPIM News: Investors view rising costs as the real danger this cycle

One of consistent themes during MIPIM was the seeming lack of concern that most investors seem to have of a market slowdown. Even when asked about the larger international risks from Brexit, trade wars and a slowing German economy, numerous investors are convinced that their approaches are cautious enough to keep them out of trouble. It's an encouraging show of positivity that's mirrored across the European market. Tomas Jandik of REICO, the Czech real estate fund, says it's the developers that are facing the biggest risks, because of rising construction costs and the time delays in getting planning permits. "That's a much bigger risk than the sale price," he says. "For residential and for commercial properties, it's relatively certain that you'll exit at goods terms, but the risk is on the cost side." With his fund's focus on core product, he doesn't have the need to time the market cycle in order to sell at its highest point. "We invest through the cycle so we're not speculating on whether there will be a slowdown or not."