MIPIM 2025: real estate trends and the role of Warranties and Indemnities insurance

MIPIM 2025, the world’s leading real estate conference, took place in Cannes, France, bringing together global professionals to discuss the future of urban development, investment opportunities, and market trends.

As the real estate sector continues to evolve, one critical aspect of these transactions that is becoming increasingly important is the use of Warranties and Indemnities (W&I) Insurance. At MIPIM 2025, W&I insurance took centre stage as a key tool for managing risks in complex property deals.

The growing role of Warranties and Indemnities insurance in real estate.

W&I Insurance provides protection to parties involved in real estate transactions by covering potential liabilities arising from breaches of warranties or indemnities in sale agreements. In large-scale real estate transactions, especially those involving acquisitions, mergers, and joint ventures, W&I insurance is becoming a vital risk management tool.

Risk mitigation in cross-border transactions.

One of the most significant areas where W&I insurance is proving invaluable is in cross-border real estate transactions. As real estate markets become increasingly global, risks associated with legal and regulatory differences between jurisdictions can lead to unexpected issues. W&I insurance helps mitigate these risks by covering potential financial losses if a seller or buyer breaches specific conditions of the transaction.

At MIPIM 2025, discussions are focused on how W&I insurance helps facilitate smoother deals in international markets, where local laws and regulations may be unfamiliar to foreign investors. With its ability to protect against unexpected liabilities such as title disputes, environmental issues, or undeclared legal matters, W&I insurance is becoming indispensable for parties engaged in cross-border property deals.

The role of W&I Insurance in commercial real estate.

In the commercial real estate sector, W&I insurance plays a key role in managing the risks associated with large-scale property investments and developments. As the market shifts, particularly in office space and urban regeneration projects, uncertainty about future occupancy rates, regulatory changes, or unexpected capital expenditures makes it harder to predict financial outcomes.

For instance, in cases where properties are being repurposed or redeveloped — such as converting office buildings into mixed-use spaces or residential units — W&I insurance helps cover potential environmental liabilities, zoning issues, or disputes that may arise after the transaction. This protection allows investors and developers to focus on the potential of the asset rather than being bogged down by unknown risks.

 Sustainability and W&I Insurance.

With sustainability increasingly at the forefront of real estate development, particularly at MIPIM 2025, W&I insurance can also play a critical role in managing risks related to ESG (Environmental, Social, and Governance) compliance. Real estate developers focused on meeting green building standards or achieving sustainability certifications can use W&I insurance to protect against risks associated with failure to meet regulatory requirements or sustainability goals.

For example, if a developer is committed to achieving specific environmental benchmarks but faces unforeseen challenges — such as delays in obtaining certifications or changes in local environmental regulations — W&I insurance can help cover the financial impact of these issues. As the demand for sustainable real estate projects grows, this type of insurance becomes an essential safeguard.

W&I Insurance in emerging markets.

W&I insurance is especially useful in emerging markets, where property rights and legal frameworks may not be as stable or predictable as in more established real estate markets. In regions with less developed legal systems or where foreign investors face regulatory complexities, W&I insurance offers an additional layer of protection.

At MIPIM 2025, many discussions focused on the increasing interest in real estate opportunities in emerging markets, particularly in Central and Eastern Europe, Asia, and Africa. W&I insurance helps bridge the gap between investor expectations and the risks posed by local legal and regulatory challenges. It provides a safeguard for investors when entering markets with higher perceived risks but significant potential rewards.

Simplifying deal structures with W&I Insurance.

A key benefit of W&I insurance is its ability to simplify deal structures. In traditional real estate transactions, buyers and sellers often negotiate over complex warranties and indemnities to allocate risk. This can make the transaction process lengthy and contentious. With W&I insurance in place, buyers and sellers can bypass some of these negotiations, as the insurance policy itself takes on the financial risk associated with potential breaches.

This streamlining of the transaction process is particularly attractive in high-stakes deals, where speed and certainty are essential. In today’s competitive real estate environment, where time is often of the essence, W&I insurance provides a mechanism to move deals forward quickly while ensuring that both parties are adequately protected.

Conclusion: a crucial tool for modern real estate transactions.

As MIPIM 2025 highlights the latest trends in real estate development and investment, Warranties and Indemnities Insurance stands out as a critical tool for managing risk in the industry. With its ability to protect against unforeseen liabilities, facilitate smoother transactions, and simplify deal structures, W&I insurance is becoming an indispensable part of the real estate landscape.

From cross-border transactions to commercial and sustainability-focused developments, W&I insurance is helping to ensure that real estate deals proceed with confidence, even in an increasingly complex and uncertain global market. As the industry continues to adapt to new challenges and opportunities, W&I insurance is likely to remain a cornerstone of risk management in real estate transactions worldwide.