WHO IS INVESTING
IN WHAT EB5 PROJECTS?
The top industries that EB5 investors poured capital into in 2017 include: resorts, casinos &hotels, housing, mixed-use projects, and medical facilities.
Within the hospitality industry hotels are a popular choice. Hotels for boutique, business, and economy boomed compared to the previous year. Housing includes apartment complexes, condominiums, and senior-homes. Mixed-use projects often have a combination of offices and retail spaces.
As the baby-boomer generation ages, many believe the healthcare industry will be recession proof. Projects in this industry include hospitals, healthcare facilities, and medical campuses that are equipped with top-of-the-line medical equipment, the latest technology, and luxury facilities.
Real estate is the top industry for EB5 investors from all countries, but investors from Mainland China and Vietnam are particularly attracted to these projects. The main draw investors have to real estate projects is the fact that it is a tangible investment. Another reason for the appeal is that these projects are developed in major cities such as New York City and Los Angeles. Investors view projects located in prime areas as less risky investments. They invest in condominiums, casinos, and mixed-use projects.
Another country that favors real estate investments is Brazil. Brazilians are being marketed to heavily by developers in Florida who are working on hotel and housing projects. The business and trade between Florida and Brazil have led to a growing EB5 relationship between the two.
Indian nationals prefer more entrepreneurial projects, with 25% of them in 2016 opting to invest in the EB5 Direct Program. The Indian nationals who invested in the Regional Center Program also frequently choose real estate projects to invest in.
This has a lot to do with the marketing efforts of real estate developers who turned to the Indian market when the Chinese market began slowing down in 2017. These developers and marketers noticed that, like China, India had an extremely fast-growing economy. Additionally, many Indians were already interested in emigrating and often were already residing in the U.S. on student visas or H-1B work visas.
Overall, real estate projects are by far the most popular choice for EB5 investors.