November 9, 2011
Holger Schmieding, a top economist at Germany’s oldest private bank, says diversification is the key to market success. As our latest Property Influencer, he shares his advice on how to avoid the bubbles.
Founded in 1590, Berenberg Bank is Germany’s oldest private bank, managing €25 billion and active in all private banking business segments. It was elected Germany’s Best Private Bank in 2010 by Euromoney.
The latest contributor to our Property Influencer series, Dr. Schmieding shares his perspective on international property managers. He advises companies to look before they leap into China, and prescribes diversification as a recipe for success in the property market.
Real estate markets are volatile by nature, Dr. Schmieding says, so investors must be selective in choosing property markets and try not to get caught in a bubble. He predicts emerging markets with mild inflation problems will see cooling in the future. Meanwhile, he lists Germany, Sweden and Switzerland as recovering economies that could attract big investment, describing them as primed for new capital.
In this exclusive video interview, Dr. Schmieding discusses how to avoid the bubbles and invest wisely in a recovering or potential new market.
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