‘We can make the world a better place while increasing profits’

FUTURE OF REAL ESTATE: “There is no shame in doing good and making a profit.” This was one of the most powerful comments, delivered rousingly by U+I’s creative director Martyn Evans, that was ringing in delegates’ ears as EG’s Future of Real Estate event drew to a close last week. It was a firm nod to the fact that running a good business and making the world a better place do not have to be mutually exclusive, Evans was passionate on this point as he took to the stage for the last panel discussion of the day on long-term trends and short-term consequences. “I started my career working for Anita Roddick at The Body Shop,” he said. “She told me that I should always go to bed at the end of every day having made the world a tiny bit better than it was when I woke up. And that’s what I try to do. It’s what she did, and she got great job satisfaction out of that. And a s***load of money.” The issue of balancing good work for the wider world and profit was just one of many topics the panellists at this session addressed. Evans’ comments stemmed from a point made my fellow panellist Nicky Wightman, director of global occupier trends at Savills, on the growing “deep sense of consumer focus” within the real estate sector. This, she said, was the perfect example of a long-term trend as the industry recalibrates to become more alert to the nature of occupiers, customers and consumers to foster a deeper understanding of what they want. “This is the key to real estate,” she added. On whether this was a new trend, she said it had certainly been a long time coming. “Traditionally, the industry hasn’t been known for being particularly in touch with consumers. It has changed over the past few years and it needs to change more.” “Indeed it does,” added Evans, before he continued his point about doing good and making a profit working as part of the same strategy. “It is frustrating that it has taken so long for the sector to see how the two can work together. As I said, there is no shame in doing both and if you do good, you can make more profit and there is no shame in that either. I just can’t understand how anyone can imagine doing business any other way. “As a sector, we create the wherewithal and the infrastructure in which people can live. Very little we do in life doesn’t happen in or around a building or structure. We provide that so why shouldn’t we make a return on our investments?” Looking ahead Talk turned quickly too to politics, cycles and 2020 predictions. Sean Cook, project management director, UK & Ireland residential lead for AECOM, had a positive prediction to air: “Next year will probably see a boost once we get clear of 2019 and some of the things that have characterised the year. From talking with a lot of clients, anyone who has a 10-15-year plan is just getting on with it and anyone with shorter-term plans tend to be waiting to see what happens.” And as Richard Birks, partner and head of housing at DWF, pointed out, there are still opportunities out there. “It should come as no surprise that the investment market is slightly held back at the moment because of the political scene but alternative asset classes have kept on going. Accommodation for older generations, supported living, the student sector – demographic factors will drive activity.” Richard Gwilliam, head of property research at M&G, said that even the held back investment market was an opportunity for those with courage, saying: “As always, fortune favours the brave. If we look at 2019 and go even further back to 2016/17/18, the world and the UK has been characterised by geopolitical uncertainty and it has been complete and utter chaos. “But the result has arguably created opportunities for investors willing to take a longer-term view. Property is a long-term asset class and for those willing to look through short-term risk and ask themselves ‘do we want to be invested in the long term in the UK?’ there are opportunities. “Think about it this way, will London and the UK continue to be great places to live, work, spend and do business fundamentally? We believe both have a long-term future and we are therefore capitalising on the fact that short-term risks are putting other investors off as it means the UK has remained relatively cheap and [offers] a great chance to pick up bargain prices. “This takes a brave investor. You have to ignore all of the negative press and headlines. But it won’t be this way forever.” The panel Martyn Evans, creative director, U+I Sean Cook, project management director, UK & Ireland Residential Lead, AECOM Richard Gwilliam, head of property research, M&G Nicky Wightman, director, global occupier trends, Savills Richard Birks, partner and head of housing, DWF Chair: Damian Wild, editor in chief, EG To send feedback, e-mail emily.wright@egi.co.uk or tweet @EmilyW_9 or @estatesgazette