In today’s markets, especially in Europe, you need to be a macro-player to be successful. In fact, you almost have to become a political analyst and an economist to make your investment decisions, whether it is in real estate or any other market.
The recent devaluation of the Euro will certainly help the Eurozone’s exporters. As a result, export and tourism related businesses are going to benefit exponentially. For example, hotels across Europe should see a huge increase in visitors this summer.
The European market is also benefitting from a “flight to safety” by investors. There is so much political risk around the world today resulting from wars, civil unrest and political mismanagement in emerging markets such as the Middle East, Russia and Brazil, and people are looking for safe havens – in particular Europe and the United States – to place their investment capital.
Overall, I don’t expect great boom times in Europe over the next few years, but I do believe it is winning the currency wars, and the region will benefit as a result.