In the latest indicator of the strength of the global property market, Mainland China attracted the most applicants to the federal EB-5 program during the last year as the number of millionaire households in China soared, according to Savills Studley’s in-depth white paper, “EB-5 Investment and the Impact on Commercial Real Estate.”
Authored by Savills Studley’s Chief Economist, Heidi Learner, the report tells a compelling story about how the flow of cross-border investment from China into the U.S. is impacting foreign investment, public policy, and the future of development.
EB-5, a federal program where non-U.S. citizens can invest in a U.S. business in exchange for their citizenship, saw one of its most active years on record to date. The new study shows that total EB-5 issuance worldwide went from 8,564 visas in 2013 to 10,692 visas at the end of the 2014 fiscal year. Of the visas issued in 2014, Mainland China comprised 85.4% of the total (9,128 visas), as compared to all other countries (1564 visas). And in 2013, Mainland China made up 80.5% of total issuance (6,895 visas), a steady increase from 80.1% (6,124 visas) in 2012, and 69.5% in 2011 (2,408 visas).
Up until this past year, the overall EB-5 visa quota had never been met in either an aggregate or on a per-country basis. However, in late August of 2014, the EB-5 preference category became unavailable for Chinese applications, implying that the maximum allocation of EB-5 visas for Chinese applicants had been reached for the current fiscal year...Major Increase in EB-5 Applicants from Mainland China Drives Global Commercial Real Estate Demand: Report
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