Journey to Japan – Global Trends

Penteris Head of Real Estate Andrzej Tokaj recently travelled to Tokyo for the GGI World Conference in his role as Global Chair of the GGI Real Estate Group and shared his thoughts on the event…

I was struck by the city’s unique blend of tradition and modernity. The GGI conference itself was a melting pot of ideas and my all too brief time there offered a fresh perspective on Tokyo’s resilience and the shared challenges shaping economies worldwide.

Global Convergence of Professionals

The event witnessed an extraordinary assembly of approximately 200 professionals from over 50 countries spanning all continents. This remarkable gathering underscored the growing interconnectedness of our world and the shared commitment to fostering global collaboration across industries and sectors.

Tokyo: Defying the “Lost Decades”

While Japan’s economy is often associated with its so-called “lost decades,” Tokyo’s vibrancy and influence tell a different story. The city stands as a beacon of dynamism, innovation, and global connectivity. Its bustling economy, world-class infrastructure, and cultural reach challenge the narrative of stagnation, showcasing the resilience and adaptability of urban centers to broader national trends.

Resurgence of Industrial Policies

Once a hallmark of 17th-century France under Jean-Baptiste Colbert and King Louis XIV, industrial policy, including protectionist measures, is seeing a resurgence in today’s global economy. Professor Soll’s captivating speech highlighted how these policies laid the groundwork for economic modernization in early modern Europe. Today, as countries adopt varying degrees of economic protectionism, history reminds us of both the opportunities and challenges such strategies entail.

M&A Surge on the Horizon

The U.S. mergers and acquisitions market is poised for robust growth under the new administration. A reduction in regulatory barriers and government intervention is anticipated to stimulate market activity, potentially unleashing what economist John Maynard Keynes famously termed the “animal spirits” of capitalism. The business community awaits with cautious optimism to see if these measures will reignite entrepreneurial dynamism across sectors.

Smart Conversions: A Real Estate Solution

Our GGI Real Estate Group delved into the transformative potential of property conversions. In response to the twin challenges of an oversupply of office space and a stark shortage of affordable housing in global cities, conversions are emerging as a practical and innovative solution. By repurposing underutilized spaces, the industry can address structural imbalances and make strides toward sustainable urban development. Thoughtful and strategic conversions could be a game-changer in mitigating the ongoing real estate crisis.