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Including Cyprus, Greece, Hungary, Spain & Turkey

 

Some 30 European countries grant citizenship, permanent residency to real estate investors

 

Mazaya Report says: “Rejuvenated real estate markets ensure more economic stability and growth in 2018”

In 2017, real estate markets have proved their potential resilience to benefit from the price declines recorded across the region, which reflected positively on sales and leasing activities, and consequently contributed to maintaining a high level of cohesion and resistance to besetting business pressures. Spending has continued in the form of a flow of viable projects and the stability of oil markets has contributed to leveraging the Gulf real estate market.

Al Mazaya Holding said in its weekly report that the launch of new projects depends on a number of factors and data to determine their success and feasibility. To be successful, these projects must meet market requirements and real demand levels in order to provide real estate products capable of resisting market fluctuations and meeting all types of demand under various circumstances.

Al Mazaya report added that the need to create resilient real estate products is very urgent. The diversification of financing channels and the development of tools and mechanisms for activating real estate markets have a key role to play in addressing the challenges and ensuring a supply-demand balance.

Al Mazaya explained that the market over the past years witnessed plenty of real estate projects. Thousands of residential, commercial and investment units have been handed over, while many markets around the world have faced many challenges to maintain good demand levels and other challenges related to attracting foreign investments.

Al Mazaya noted that a large number of countries have introduced substantial changes to their real estate sector governing laws and regulations, making them more flexible, resilient, competitive and able to attract more homeownership seekers – a tendency which has proved impressively successful in many countries. Other countries linked real estate market and homeownership activities with significant privileges, including granting of citizenship or permanent residence.

In Greece, authorities have made changes to the property and rental laws to revitalise the real estate market after prices have fallen by as much as 50%. The amended laws include granting a five-year residence visa when purchasing residential or commercial properties in addition to the possibility of getting residence permits after signing a 10-year lease contract.

The Greek real estate market has recorded significant declines as a result of the severe economic crisis the country has been suffering over recent years. This shows that the success of development programmes and the amended laws depends on the extent of economic stability and the ability of developmental plans to make a difference in the existing situation. The property sector boasts enormous potential for attracting liquidity and foreign investments while incurring lowest investment costs on governments and the private sector in comparison with other sectors.

Al Mazaya has addressed the competitive tools and mechanisms of attracting investments in and their impact on Arab and Gulf investors over the past few years. The current promotion plans adopted by many European real estate companies have achieved more mobility, motivation and demand for real estate products in various EU countries, with property purchase prices starting from 300,000 euros.

Al Mazaya said that the promotion plans adopted by European countries have been well-received by Arab investors, particularly in Cyprus, Spain, Portugal, Greece and Hungary markets, with offerings extending beyond the real estate sector to investments in bonds of at least €500,000 to provide residency and then citizenship. Up to 30 European countries provide permanent residence or nationality when buying property, and these plans are targeting Gulf investors and Arabs from the middle and upper class who wish to invest abroad for numerous reasons.

Al Mazaya explained that the fundamental amendments introduced by official authorities to the laws of ownership in the Turkish real estate market during the last few years have attracted thousands of investors from Arab and European countries and the whole world, and have also activated the market and diversified the economy, ultimately boosting the Turkish GDP. The new laws provide the right to own a property in Turkey and to benefit from all privileges and facilities granted by the authorities to foreigners.

On the other hand, authorities in Turkey abolished the reciprocity law in 2012, a move which has granted foreigners and property owners the right to obtain one-year renewable residency.  This is coupled with other plans and efforts by the government to provide more innovative and diverse solutions to stimulate investments and raise the productivity of other economic sectors. Turkish citizenship can now be granted to anyone who buys property worth not less than one million dollars or has an investment worth $2 million in the Turkish market.

Al Mazaya pointed out that the real estate market in Egypt witnessed a remarkable development in 2017. The official authorities approved an initiative to grant temporary residence to foreigners in return for purchasing a property in US dollar of at least $100,000, and five-year residence for buying residential units worth $400,000, a move expected to earn the real estate sector and the Egyptian economy billions of dollars annually. This initiative fits within the non-conventional proposals and ideas that will activate the market, support the Egyptian economy with foreign currencies and boost real estate sales.

On the other hand, the Emirate of Dubai has provided many packages to stimulate and encourage real estate ownership through granting residence for the purchase of property at a value of not less than one million dirhams, provided that it is paid in full and not through finance. The Dubai market has proved its ability to attract real estate investments under all circumstances thanks to its attractive returns and capital gains, not to mention the exceptional advantages of living in a state-of-the-art emirate.