After having successfully driving up real estate values in Hong Kong and Singapore, Chinese investors may have some new investment destinations to consider now that some European countries are dangling residency-linked incentives for investors.
After reports surfaced of Chinese investors buying up property on the Mediterranean island of Cyprus thanks to generous terms for achieving European Union residency, Spain is attempting to revive its cratered real estate industry by offering permanent residency to any foreigner provided they buy a house or apartment worth more than €160,000 ($200,000).
The investment incentive plan was revealed by Spain’s Trade Ministry secretary Jaime Garcia-Legaz last week and is expected to be approved soon. Informed sources acknowledge that Chinese buyers will be one of the principal targets of the scheme.
Spain still has a backlog of 700,000 unsold homes in the aftermath of its real estate market collapse four years ago, and with most of Europe struggling, there are few opportunities to entice buyers from within the EU.
And just in case sunshine and tapas are not enough to bring the Chinese over, Spain’s residency offer is noticeably more generous than some other European nations offering similar incentives. In Ireland, foreign investors are required to spend at least Euros 400,000 to on a home to gain residency, and it Portugal the threshold is Euros 500,000.
This sounds like a good time for offering Mandarin lessons to Spanish brokers, or maybe expanding the Romance languages departments at Fudan and Beida.
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