{"id":32013,"date":"2020-09-12T10:36:00","date_gmt":"2020-09-12T06:36:00","guid":{"rendered":"https:\/\/www.savoryandpartners.com\/?p=32013"},"modified":"2020-10-12T18:08:56","modified_gmt":"2020-10-12T14:08:56","slug":"investing-in-eu-residency-through-real-estate-in-the-wake-of-covid-19","status":"publish","type":"post","link":"https:\/\/old.savoryandparnters.com\/blog\/investing-in-eu-residency-through-real-estate-in-the-wake-of-covid-19\/","title":{"rendered":"Investing in EU Residency through real estate in the wake of COVID-19"},"content":{"rendered":"

As the EU economy falls victim to the Coronavirus pandemic<\/a>, most investors have diverged into two groups; those who want to save as much of their wealth as they can and those who wish to grow it. Cooler heads are quick to recognise that, with a crisis, opportunities arise<\/strong><\/em>.<\/p>\n

The pandemic has severely impacted the EU\u2019s economy, and experts see another recession looming. The European Commission\u2019s Directorate-General for Economic and Financial Affairs (EFA)<\/em>, however, does not expect this recession to linger as long as that of 2008 or 2009, predicting an upturn in the Union\u2019s economy as soon as in 2021, though recognising that the immediate economic effect of the pandemic will hurt.<\/p>\n

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The Coronavirus has brought many property deals to a halt, has made venture capitalists a bit less adventurous, and has – in some cases – stopped entire real estate markets in their tracks. With such economic calamity, opportunities begin to emerge for those astute enough to seize them<\/strong>. As less capital flows through markets and demand dwindles, prices inevitably drop, creating limited time windows for an opportunistic few to close the bargain of a lifetime.<\/p>\n

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\u201cIt\u2019s always good to invest when there is not too much appetite in the market\u201d, says Pamela Hoerr, Board Member of German Real Estate Giant Real IS AG<\/a>. \u201cWe have been battling with too much capital in the market over recent years.\u201d<\/em><\/p>\n<\/blockquote>\n

The EFA forecasts a drop in EU GDP of -8.3% for 2020, as well as an inflation rate of 0.6%. A dip in GDP is commonly accompanied by lower prices and limited cash flow in property markets. Prolonged periods of negative cash flow forces corporations to slash prices to sustain operations, and that is precisely what is happening right now<\/em>.<\/p>\n

\"Prolonged<\/p>\n

Perhaps the most interesting part of the EFA\u2019s 2021 forecast has to do with its recovery projections; The EU\u2019s GDP increases by 6.1% while inflation is set for a surge of 1.3%. These numbers indicate a V-shaped economic growth rate, the bottom of the \u201cV\u201d presenting the ideal investment opportunity<\/strong>. Investors able to accurately identify and time the bottom of the V make career-defining returns.<\/p>\n

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