IM Yearbook 2020/21

REAL ESTATE
REAL ESTATE INVESTMENT OPTIONS:
HERE TO STAY
BUT INFLOWS SHOULD BE BETTER MANAGED
Real estate-linked investment migration programmes are a firm favourite among
applicants; however, they do not always deliver the intended economic impact. The IM
Yearbook spoke with five industry experts about the appeal of the real estate route and
what could be done to ensure that this investment option realises its full potential.
The real estate sector has long been closely intertwined
with the investment migration industry. Today, the large
majority of residence- and citizenship-by-investment
(RCBI) programmes offer a so-called real estate route, whereby
the purchase of property is considered an eligible investment.
Although property-based residency and citizenship programmes
remain popular choices among investor migrants, industry
experts say there is a need to better direct real estate inflows
to avoid potential negative repercussions on the local real
estate market and to ensure a wider economic impact.
Real Estate Attraction
“The real estate route is a well-tested option,” says Yiannos
Trisokkas, Chairman of Henley & Partners Real Estate Committee
and Director of Casamont, the real estate arm of Henley &
Partners. It offers investors opportunities for income generation
through leasing as well as a clear exit strategy, Trisokkas explains.
However, especially in turbulent times, investors appreciate
real estate investment as part of a long-term back-up plan, he
says. “Without a doubt, after the Covid-19 experience, people
will want to have a home in an alternative location as a backup
in case we face similar situations.” Gaye Hechme, Managing
Director of Island Living in Antigua and Barbuda, agrees.
“With the advent of the Covid-19 pandemic, we are seeing a
greater number of applicants looking to invest in property
that gives them the option to live in a safe country, a place to
reside should the need arise in today’s uncertain world.”
Frederico Seixas of Investaureum says real estate is
still the number one driver and vehicle for the investment
migration industry. “Real estate has been for decades known
as the most secure and solid investment when compared
with other investments options such as government bonds.
However, high-net-worth individuals do take advantage
of these assets. Purchasing property is more than just
fulfilling a government obligation. Properties are often
used for family vacations, although many clients also
appreciate the fact that real estate can be easily re-sold.”
Christos Kotsaidis, CEO of Filia Investment, points
to steadily rising real estate values in Greece. “Despite
the Covid-19 pandemic, the real estate market in Greece
keeps on a steady pace. There are many undervalued
properties due to the country’s 10-year financial crisis that
ended in 2019, which present an attractive investment
opportunity. In my opinion, I won’t be surprised if we see
an increase in property value of 15% to 20% in 2021.”
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