Numerous surveys and statistical data seem to point to one conclusion: China's wealthy population is more enthusiastic than ever about overseas investment immigration, particularly through real estate acquisition in Europe.
According to data provided by London-based wealth consultancy Wealth Insight, Chinese wealthy individuals currently hold approximately $658 billion in offshore assets. Data from the Boston Consulting Group is relatively lower, at around $450 billion. However, the group notes that offshore investments are expected to double within the next three years.
A research report released by Bain & Company states that half of the "ultra-wealthy" in China (those with assets of $16 million or more) hold investments overseas.
Research conducted by the "Hurun Report" in collaboration with the Bank of China indicates that more than half of China's millionaires are considering emigrating overseas or have already begun taking specific steps toward immigration.
Regarding the phenomenon of the wealthy flocking overseas to invest in property and obtain immigration status, experts point out that the primary motivations are asset allocation for appreciation, health, and family. In addition, the wealthy are seeking a better environment for their children: both better schools and cleaner air.
In particular, influenced by the European debt crisis, various European countries have introduced immigration policies that allow for residency in exchange for property purchases, competing to attract overseas capital. Such immigration programs align perfectly with the investment preferences of Chinese citizens, sparking a wave of migration to Europe among the wealthy.
Since the start of 2013, Canada has continuously tightened its immigration policies, and the U.S. EB-5 investment immigration program is also on the verge of a price increase. Traditional immigration destinations are gradually raising the thresholds and increasing the difficulty of immigration. Meanwhile, policies in various European countries that grant residency for the whole family through simple property purchases have immediately attracted the attention of many Chinese investors.
When converted into RMB, a few hundred thousand Euros in major cities like Beijing or Shanghai might only buy a property under 100 square meters in the suburbs. However, in some European countries, this can purchase an apartment or even a villa of over 300 square meters in the city center. This holds immense appeal for Chinese people, for whom property ownership is becoming increasingly difficult.
Housing prices in many European countries are currently at a low point, making this an excellent time to buy at the bottom of the market. Taking Spain as an example, current housing prices have fallen by about half compared to 2010. Local developers remark: "We are now selling at a loss, 20%-30% below cost. For instance, a property in Lisbon that cost 800,000 Euros is now generally being sold at a list price of 550,000 to 650,000 Euros. The overall housing market situation in Spain is the same. Whether it is us developers or the banks, we are all choosing to lower prices for liquidity. Therefore, these prices cannot possibly go any lower." This shows that now is the perfect time to purchase European real estate, whether for personal use or investment.
Many who have visited Europe are deeply impressed by the local environment. Looking up to see blue skies and white clouds, and stepping out into surroundings filled with birdsong and flowers—this is the reality of life in Europe. Europeans are unfamiliar with the concept of smog, tap water is drinkable in most countries, and food safety is a matter of national importance. This is one of the reasons why many domestic investors choose to buy property in Europe: to find a livable place for their families.