Investing in Real Estate: A Gateway to a Second Citizenship

Real estate has always been a cornerstone in citizenship by investment. Property investments are safe, provide a tangible, usable asset, and can be quite profitable regarding rental and appreciation ROI. All of the world's citizenship by investment programs have a real estate component within them, and for that reason, NTL Trust wants to highlight how real estate investment can be your gateway to obtaining a second passport in two of the world's popular citizenship by investment programs: Antigua & Barbuda and Türkiye.

Real Estate In Antigua & Barbuda

Antigua & Barbuda's housing market is a fascinating one. In 2007, the nation saw the highest property price increase worldwide due to the economic crisis, and it has maintained a sustainable curve since, making it into one of the globe's most stable and interesting housing markets.

An average two-bedroom home in Antigua would cost about $350,000, and a three-bedroom home would run about $600,000. Rental yields average around 4%.

These statistics are much more interesting when put into the perspective of citizenship by investment. Antigua's citizenship by investment program requires applicants to invest a minimum of $200,000 into an approved real estate project to qualify. That amount will grant an investor joint ownership of a property or share in a top-tier hotel. If investors want to go for full ownership, the amount rises to $400,000. These numbers align perfectly with the Antiguan housing market averages, meaning that investors are getting a fair market price and outstanding value for their money since the approved project list is made up of remarkable projects. Investors must hold on to their property investment for a period of at least five years. However, during that period they can use the property themselves or make a profit through renting it out, or, in the case of investing in luxury resorts and hotels, make a profit through dividends. Buying shares in luxury resorts has been extremely popular among Caribbean citizenship by investment applicants, and it is the same case in Antigua & Barbuda. Hotel shares mean that applicants can invest average market amounts into mega-projects that can produce solid profits, and selling them is quite simple as they are an investment asset rather than a traditional property. Hodges Bay Resort & Spa is a prime example. The luxury hotel is situated on the beach at Hodges Bay near Cedar Grove, one of the most pristine areas in the entire Caribbean. The hotel's design is remarkable. Its airy, light, relaxing rooms are complimented with an outstanding landscaping design that encompasses the Caribbean natural vibe. Elite restaurants at the hotel provide a luxurious, mouthwatering gastronomical experience that is bursting with local flavors and cultural significance. Hodges Bay Resort & Spa is an approved project under the citizenship by investment program, and it exemplifies why the real estate option in Antigua is so popular. Applicants can become shareholders of the hotel and enjoy their share of the profits, making it an excellent route to obtaining a second citizenship. Hodges Bay Resort & Spa also makes the entire process easier for the investors through its buyback option. The resort will purchase the share back from the investor after the holding period for the full amount of the original investment, making the liquidation of the investment a seamless process. This buyback, coupled with the potential dividend profits, makes it an excellent choice for savvy investors. Investors can look forward to investing in stunning projects such as the Hodges Bay Resort & Spa while simultaneously qualifying for citizenship. Antigua's passport is a robust one, offering visa-free entry into 152 destinations worldwide, including many attractive world destinations.

Türkiye

Türkiye's citizenship by investment program is one of the most popular in the world, having naturalized over 19,000 people since its launch in 2017. One of the most popular investment routes within the program is the real estate investment option. Applicants can buy one or more properties for a total value of $400,000 to qualify for the program, and Türkiye has very few limitations on property investment. For a property to qualify, it has to meet two criteria:

• It cannot have been used to obtain citizenship before
• It must not be sold for three years

These lax requirements mean that investors can have the pick of a virtually open market in one of the world's most dynamic economies, and Türkiye's housing market does not disappoint. Property prices have soared in Türkiye in the past few years due to inflation and a non-traditional economic strategy. Property prices grew, on average, 57.2% (adjusted for inflation) Y-o-Y in 2022. Istanbul, the country's cultural and economic capital, saw a price growth of 59.4% during the same time period. Being the most popular foreign investment destination, investors who had acquired the property prior under the citizenship by investment program look to make a staggering profit of nearly 60%. Türkiye's dynamic housing market is one of the main reasons citizenship by investment applicants choose the real estate option. It is profitable through appreciation, but also through rent. Rental yields in Istanbul can reach *a whopping 9% *in some areas, while some neighborhoods in Ankara even breached the 10% mark, astonishing rates for rental yields on any scale. If an investor can obtain a property that yields around 8% in rental income and sells it for a 60% appreciated rate after five years (five instead of three so that they can be exempt from capital gains tax), then they are looking at an overall ROI of 100%. Foreign investment in property in Türkiye rose by a whopping 20.4% in 2022, and it is set to continue growing, especially within the unique circumstances of the most recent year. The year 2023 saw the housing market take a different direction, though, and it is one that opens a unique opportunity for investors. The reason Türkiye's housing market is so dynamic is that interest rates are very low while banks offer high-leverage loans. Couple this with the turbulent Turkish Lira and the tendency of locals to purchase property to hedge against inflation, and it creates a bustling housing market with massive demand. Türkiye's government decided to change its tactics in 2023, though. Türkiye's President, Recep Tayyip Erdoğan, appointed Mehmet Şimşek as Minister of Finance in a bid to stabilize the Lira and curb the country's rampant inflation. The possibility of obtaining massive returns through a property investment coupled with acquiring second citizenship makes the Turkish citizenship by investment program an alluring venture for global investors looking to enhance their individual sovereignty. To know more about real estate investments and citizenship by investment, contact us today to book a comprehensive consultation with one of our experts.