Enclaves for the rich are a new trend in the real estate and investment industry. Today, at a time of great turbulence for the whole world, when humanity is facing problems that no one had thought of before, the basic question of the security of life in general arises. The frightening trend of capital flight from many countries of the world in search of a safe haven for life will sooner or later lead to the formation of the gated enclaves in which security will come first. Depending on their social status, such enclaves still have to address the main issue of security of living in them.
Emigration and capital flight
Let's look at the statistics on the emigration of millionaires in the world, using the first ten countries as an example.
Among the leaders are Russia, China, Hong Kong and India. It would seem that even such a safe haven as the UK is losing capital and is facing the problem of millionaires. The article will focus on capital flight from China, because the Chinese clients are of direct interest to the Investment Club in Spain. This is the first club of its kind for real estate investors, a generator of unusual ideas and promoter of the creation of enclaves for the rich. Investment Club stands apart in the market, offering unique investment projects with no match in the industry.
Enlargement of the overseas Chinese diaspora
Since our great experience in the Chinese market allows us to highlight this market and analyze the opportunities and needs of investors in terms of emigration, we can identify the main reasons for the flight of wealthy Chinese from the country.
Why are Wealthy Chinese re-locating abroad? There are several reasons.
1. Chinese citizens are fed up with Covid lockdowns
They were not be able to leave the country at all during those 3 years. Many investors who have their companies abroad lose control over them for a long time.
2. Millionaires want to secure their money as the Chinese economy is facing problems.
A sharp slowdown in China's economy is a negative indicator for domestic investment. The economy is not stable and risks of investment are increasing.
3. Pessimistic approach to Xi's prolonged reign Chinese politics seems unstable for the rich.
4. Higher costs of living in China's cities. Prices rise from 20% to 40% depending on the region.
All this inevitably leads to an increase in the size of the Chinese diaspora in the world. While the U.S. used to have the largest number of Chinese immigrants, today the geography has changed. In addition to Australia and Singapore, more and more Chinese are looking toward Europe.
Spain as one of the quietest havens for Chinese emigration attracts Chinese clients for many reasons. This quick legalization in the country through the purchase of so-called golden residence (minimum real estate investment of not less than 500,000 Euros) or purchase of Spanish citizenship (investment in the economy not less than 2 million Euros). But not only that. Spain has little support for refugees, the Mediterranean coast such as Marbellais the world resort, where security plays a major role
The number of Chinese millionaires is set to grow from 6.2 million in 2021 to 12.2 million by 2026. According to statistics, more than a third of Chinese millionaires want to leave China.
China’s billionaires want to flee the country
Many wealthy Chinese think about emigrating for a number of reasons related to their personal or social life. Moving is always associated with various kinds of difficulties. These include arranging a new home for the family, preparing for children education, adapting to the peculiarities of the national culture, the language of another country, and security.
However, the Chinese billionaires made fortunes abroad.
"China's billionaires want to flee the country, and take $60 billion of wealth with them on their way out," according to FURTUNE magazine.
However, the Chinese, used to an active lifestyle, among other things, are looking for a place to invest their money and work for them.
The question arises if there's a unique product in the real estate industry, which would meet all the needs of this category of customers, so that they could choose, for example, a country like Spain?
The Chinese mentality, culture, taste and lifestyle are very different from European standards. For 3,000 years, China has lived with the philosophy of Feng Shui. It is a practice of organizing space. With the help of feng shui you can supposedly choose the "best" place to build a house and its interior arrangement, because human life is the movement of energies. Feng Shui seeks to achieve a positive effect of the space on the people who occupy it.
If we look at the luxury properties on offer in Europe, even this notion of space organization is far from what the Chinese would want when choosing their European home.
The second equally important factor is the level of architecture and interior design. The wealthy Chinese are used to buying luxuries and surrounding themselves with refined items.
How much property can we find in Europe that meets the exacting tastes of the rich Chinese? Yes, for the most part, they have to put up with a lot, adopting an alien European culture. The Chinese remain Chinese even if they receive a fine European education.
Now let's look at the average age of the billionaires in the world.
50% the average age is 50-70.
40% over 70
10% below 50
In China, the situation is a little different. 53 years old, the average age of China's 157 billionaires.
What do these figures tell us? This age is quite conservative, with a fully developed worldview, habits, and tastes. When deciding to leave their country, these people want a solution to all their problems in a new country, preferably turnkey.
Creating a Chinese enclave for billionaires
The idea of unique enclaves for the Chinese is also related to the fact that Chinese society is a clan society. Depending on their social status, the Chinese unite in clubs of interest. So there are clubs of owners of expensive yachts, the famous Shanghai Ferrari Club, Beijing Billionaire Club. The social gradation of Chinese society is like a pie, where there are many layers and each layer does not overlap with the one next to it.
The task of creating a unique project for the Chinese enclave of billionaires is not an easy one.
Outside of China, the Chinese always feel insecure and try to band together. Also, Chinese characters are visual symbols, so the Chinese think in visual images. It is visually that they perceive information best. Therefore, when creating a comfortable living environment it is necessary to take into account all these features.
In Beijing, the emperor's palace was called the Forbidden City. Only the emperor himself and his entourage could be and live in the palace. For the Chinese mentality, the Forbidden City is an enclave for the wealthiest people, a special place not for everyone.
One of the projects of the Investment Club in Spain is the creation of just such a unique enclave, a new Forbidden City for the new elite of China, where the combination of ancient Chinese culture and modernity is preserved, where everything is designed for the highest caste of modern emperors, who have built their business empires. Planned on the club principle, such a village must provide its guests a full range of services, including not only the service at the level of a 7-star hotel. The new Forbidden City includes a large Chinese palace as the center of the composition and business club, private residences of the clan of billionaires with butlers, maids, personal cooks and gardeners, armed guards, drivers, bodyguards. Such a village should include a fleet of luxury cars, private business jets, yachts, and an eco-farm supplying products specially grown for their owners.
There is nothing quite like it in Europe, but that is exactly what wealthy clients are looking for. In addition, it is much more economical to get this for a club village than to organize it for each client individually.