Looking a lot better: Global real estate investors are now judging that Europe is a good place to be, again
This time last year, the international investment community seemed evenly divided on the euro zone. Half really hated the market, and the other half simply disliked it. A year later, and the hotels of Madrid are full of US opportunistic investors looking for distressed portfolios, and the German central bank is warning of a housing bubble! With the United States caught in political deadlock and central bank uncertainty, the euro zone now looks like a haven of relative stability.
Still, it is not just the mood in Europe that is looking better. Since April 2013, we have seen a structural bull market in global equities. The news from China, with a knock-on impact on her Asian trading partners, has improved, and Abenomics seems to be having a genuine impact on Japan. It is hard to escape the notion that the world is now entering its recovery phase, with risk appetite rising in a variety of markets and asset classes.
The euro zone is at the vanguard of this improvement. A y