The world is facing another economic crisis, which means countries like Portugal, Malta and even the US will again use their investment immigration programs to attract foreign investment.
With such fundamental change, it is important to assess the impact of COVID-19 on the investment immigration industry.
Economic Stress Means More Investment Immigration Programs
Tackling the human and social costs of the pandemic is the world’s priority today. But the pandemic has hit the global economy hard and that revival will be a long and challenging process.
It is safe to assume countries will seek to leverage the power of their passports to attract foreign investment.
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New Selling Strategies: Remote Working and More Personal Space
The pandemic has proved that people can do a good job without stepping into their cubicles for months at a stretch. Considering this, the idea of working from home from another country may not sound as absurd as in the past.
Popular tourist destinations with beautiful mountains, lush forests, or scenic beaches may encourage their investors to not just access the passport but to use it to move their lives.
Investors may prefer countries with low populations for more personal space. Further, applicants may want to keep their extended family together to avoid being stranded during future lockdowns.
Real Estate: Transition from Urban or Rural to Urban and Rural
The world may already have decided to stop living in congested cities and enjoy the benefits of more living space offered by more rural areas.
This will result in a shift in investments from urban to rural real estate. Countries that are quick to design rural-centric programs could take advantage.
However, this doesn’t mean urban real estate will collapse. Demand for commercial real estate will come down, but this is likely to be balanced by demand for bigger homes with in-built offices for remote-working residents of big cities.
For investors, the future may be less about urban or rural investments and more about urban and rural investments. As more people move out of cities, there will be obvious investment opportunities in smaller towns.
Custom-Designed Programs
The most unique benefit of a permanent residence/citizenship program is that it encourages investments into assets that don’t fit within the conventional definition of a good investment.
Since the investor gains direct citizenship or permanent residence against the investment, even the prospect of getting their capital back with zero returns is considered acceptable to many.
Governments may create real-estate specific investment immigration programs for rural areas. It will allow those willing to bet on a rural renaissance to benefit from their conviction. And those who think urban centres will continue to rule can pay more to invest in the standard investment immigration programs.
This can set off a golden cycle where investments leads to prosperity, leading to more investments and further prosperity. While there are many challenges, the investment immigration industry is likely to see more growth in the new normal, post-pandemic world.