Driven by greater volatility, nationals of leading developed nations are joining their peers from emerging economies who have their sights on alternative residence and citizenship.

The Covid-19 pandemic has prompted a surge in interest in investment migration, according to citizenship and residence planning firm Henley & Partners, which cited a 50 percent increase in enquiries overall in the first six months of 2020 compared to the same period last year.

There was a 100 percent increase in enquiries from U.S. citizens during this period compared to the year before, along with significantly greater interest shown by Canadians and U.K. citizens, the firm said in an announcement on Thursday.

During the first half of the year, the firm saw the highest number of enquiries from Indian nationals – 96.5 percent more than the next group, Nigerian nationals, with Pakistan and the U.S. occupying third and fourth place respectively.

Strong Demand

Along with the ongoing pandemic, Henley & Partners noted that political unrest in Hong Kong, U.S.–China trade tensions, Australia’s bush fires, Britain’s exit from the E.U., and mounting concerns over democracy and good governance in the U.S. as factors behind the rising interest in alternative citizenship.

At the same time, wealth creation in countries such as Bangladesh, India, Nigeria, Pakistan, the UAE, and Vietnam, is growing at a much faster rate than visa-free travel.

«Volatility drives risk and opportunity, and our clients are therefore looking for a risk management tool. Since the end of Q2/beginning of Q3 2020, we have seen very strong demand for investment migration products from high-net-worth investors all over the world. In August 2020 alone, we had double the number of paid retainers than we did in previous months,» Dominic Volek, the firm's group head of sales and head of Asia, told finews.asia.

Post-Pandemic Planning

According to Volek, clients’ objectives and motives are shifting. «If in the past, they sought to establish an alternative citizenship or residence in countries that provided the best access, resources, and opportunities, now some of them are considering a country’s coronavirus response and pandemic preparedness in general among other criteria.»

In the current context, many strategic global investors are already engaging in «post-pandemic planning» said Volek, who noted that three-quarters of clients are assessing their wealth portfolios and opting to diversify via real estate-linked investment migration programs.

At the same time, Volek noted that even investment migration programs are unable to help anyone escape Covid-19 right now. «Investment migration application today might not help you with this pandemic, but it might help you with the next wave of this one – or whenever the next healthcare crisis hits. This is especially true with HNWIs from developing nations such as Bangladesh, Indonesia and the Philippines.»

Ideal Destinations 

According to Volek, the current pandemic has served to only emphasize the attractiveness of countries like New Zealand, which has demonstrated its capabilities in managing the pandemic. «Apart from that, the relative remoteness of New Zealand is another selling point,» he said, noting the flexibility of the country's investment residence scheme. 

There has also been renewed interest in the Caribbean, as several of these countries are offering discounted program fees or donation amounts in a bid to get more foreign direct investment after taking a hit in the tourism sector, while closer to home, residence programs like Thailand Elite have seen growing interest among Australians and Americans in particular, Volek said.