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Property hot spots on foreign shores

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Governments offering investment migration programmes remain attractive options to South Africans. We weigh up some of the most popular countries

Governments offering investment migration programmes remain attractive options to South Africans. We weigh up some of the most popular countries

WORDS: DEBBIE HATHWAY – PHOTOS: SUPPLIED

Covid-19 has impacted prime residential markets worldwide and many people are reassessing where and how they live to accommodate changing lifestyle and work habits. Is the grass always greener? In the Savills Prime Index: World Cities report, analysts say the effect of the pandemic on prime residential values in world cities has resulted in a “fall of 0.5% for capital values and 1.1% for rental values”. The most stable markets in the first half of 2020 are “generally characterised by higher levels of domestic demand and tight supply”, the report says. This is prevalent in several European cities, with Lisbon among the strongest performers. In London the market appears to offer good value in a historical context and a rebound is anticipated despite Brexit uncertainty. Pent-up demand from lockdown is fuelling its recovery and people are re-evaluating what they want from their homes, says Savills residential research associate Gaby Foord. “Outside space has become more important to people living in London, particularly younger buyers.” The recent announcement of a stamp duty holiday until March 2021 as part of measures designed to boost the UK property market led to an increase in Savills’ daily website traffic. Enquiry levels are also up 60% from the average during the weeks before the March lockdown

“The cost of buying, holding and selling a £2m property in London, compared with other global cities, is significantly lower than in other markets,” says Foord. So where to next? FutureMap founder and managing partner Dr Parag Khanna says restrictive migration policies have encouraged many people to look for a Plan B via a second passport or change of nationality. “Recent estimates suggest that interest in investment migration programmes has jumped five-fold from 2019 through mid-2020,” he says. Dr Juerg Steffen, CEO of leading residence and citizenship advisory firm Henley & Partners, says the volatility of 2020 has boosted the appeal of investment migration. “We have seen unprecedented interest in residence- and citizenship-by-investment migration programmes from citizens of developed economies. For high net worth investors who want to be well prepared for the next major disruption, alternative residence or citizenship is seen as an indispensable asset and a vital hedge against ongoing volatility.”

Portugal

The lowest qualifier for Portugal’s five-year Golden Visa programme is investment in a property more than 30 years old in an area of urban regeneration or a low human density area. “The total investment with costs ranges from €330,000 for a single investor to about €380,000 for a family of four,” says James Bowling, founder and international CEO of Monarch&Co. Bowling says Monarch’s most popular investment route at the €500,000 price point is through a hotel group where the investor owns an apartment or house with full title, which is used as a hotel room and let mostly to short-term tenants. Forbes magazine rates the Algarve in Portugal as the best place to live or retire. Lisbon is 2.5 hours’ drive or a 40-minute flight from Faro International Airport. “Thanks to the Golden Visa programme, the Algarve has become a most compelling option for retiring South Africans,” says Pam Golding International MD Chris Immelman. “Beaches are beautiful, weather is fantastic, medical facilities are superb, people are friendly, English is widely spoken and golf facilities are the best in Europe.” The Lapa Porto Hotel is a Golden Visa-approved project in Porto that will operate under Marriott’s Renaissance brand. The design of the conference centre hotel embraces the cosmopolitan lifestyle, integrated in an urban context. The architecture incorporates plenty of glass, wood and other natural materials, as well as open spaces. The investment of €350,000 includes full EU residency.

“Beaches in the Algarve are beautiful, weather is fantastic, medical facilities are superb, people are friendly, English is widely spoken and golf facilities are the best in Europe” Chris Immelman, MD, Pam Golding International

The Lapa Porto Hotel in Portugal, Porto’s latest Golden Visa-approved project, features a rooftop pool with panoramic views of the city. Pam Golding International facilitates property sales and residency here.

 

Mauritius

Mauritius has long been a popular holiday destination for South Africans, but recent concessions have made it easier for them to retire, live and work there. “In June 2020, the Mauritian government’s changes to investment thresholds, the extension of work, residence, retirement permits and attractive property acquisition options led to renewed interest,” says Xpatweb director Marisa Jacobs. Beyond its natural beauty, the island is known for its excellent private schools, reputable banking systems, regulatory certainty and technology-driven government systems. “The dispensation for owning property in Mauritius is far more flexible than in most other African countries. In Mauritius, a South African is allowed to purchase a property as a freehold or through a 99-year lease agreement with the option of renewal,” Jacobs says. Foreign nationals are required to invest $375,000 in property to qualify for the permanent resident permit.

“The effective tax rate of 15% for individuals is well below those applicable in SA. A significant difference is that Mauritian residents are only taxed to the extent of the money that they bring into the country. These financial incentives, combined with the close proximity to SA, will likely see more people moving to Mauritius in the future.” Cap Marina is an upscale water village in the north, 50m from the beach in a secure environment of more than 22ha. A variety of facilities are available on its doorstep, including a supermarket, a bakery, a pharmacy and 24/7 medical assistance. “Thanks to the commercial success of Cap Marina, the groundwork for the first phase of the project has already been laid. You can now invest in Cap Marina from $375 000 and obtain a permanent residence permit,” says Evaco Property head of sales Aude Leclerc. The development offers apartments, townhouses and luxurious villas in a range of designs and sizes. Cap Marina is ideal for senior citizens looking for a retirement home, young couples in search of their first home and investors on the hunt for great property investment opportunities.

” Financial incentives, combined with the close proximity to SA, will likely see more people moving to Mauritius in the future” Marisa Jacobs, director, Xpatweb

Montenegro

Montenegro has not only emerged as an appealing destination for post-lockdown travel, it also presents an excellent investment destination. Applications for the Montenegro Citizenship-by-Investment Programme were up by 142% in the first quarter of 2020 compared with the last quarter of 2019. Amanda Smit, Henley & Partners managing partner and head of South, East and Central Africa, explains that by extending their wealth planning and legacy management strategies to include investment migration in a post-pandemic context, investors are catalysing the transition to new lives in countries of their choice. “It enables a better quality of life, where they feel more comfortable and secure and where they envisage a future that is better aligned with their aspirations now and for future generations,” she says. In short, Covid-19 has meant that people want safety, space and security – and Montenegro delivers all three.

Approved applicants and their families who qualify for Montenegrin citizenship must contribute €100,000 to the government of Montenegro for the advancement of local underdeveloped, self-governed units and invest at least €450,000 in an approved property development project in the capital, Podgorica, or in the popular coastal region of Montenegro. Alternatively they can invest a minimum of €250,000 in an approved property development in the northern or central regions of Montenegro (excluding Podgorica). Additional government processing fees and other application fees would apply.

Lisbon, Portugal

Visa-free travel: a snapshot

The Henley Passport Index ranks the world’s passports according to the number of countries their holders can access without a prior visa, based on data from the International Air Transport Association. Here is a selection:

1 Japan                                       4 Italy

6 Portugal                                 7 UK

29 Seychelles                          31 Mauritius

44 Montenegro                      52 South Africa

Marisa Jacobs, director, Xpatweb.com

Marisa Jacobs, director, Xpatweb.com

Amanda Smit

Amanda Smit, managing partner, Henley & Partners SA

Aude Leclerc

 

Aude Leclerc, head of sales, Evaco Property

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