39% of expats bought a property back home during the pandemic
The pandemic sparked a surge in purchases by expatriates looking to acquire a base back home
1 minute to read
Although only a small proportion of the survey’s respondents define themselves as expatriates, this segment of the global workforce has been an influential source of property demand since the start of the pandemic as we highlighted in our recent research.
The survey results confirm that the United States, Singapore, Hong Kong SAR, the United Kingdom and the Philippines were the key locations our expatriate respondents were based prior to the pandemic.
For those that returned home, a desire to be closer to family (36%) was the biggest motivating factor, followed by an improved quality of life (24%) and a change in employment circumstances (16%).
Several acted quickly to avoid lengthy lockdowns in their host country or territory, whilst others have been prevented from returning home so instead relocated to an intermediary location they deemed safer. For those based in emerging markets there were concerns around quality healthcare and their ability to access the vaccine.
The uptick in demand identified by Knight Frank’s prime sales team in 2020 is supported by the survey results. Some 39% of expatriate respondents have bought a property since returning home. Around 20% purchased a primary residence, 7% a second home and for 11% it will be a 50/50 home which they may retire to in the long term. For 43% of the respondents, they already had a home to return to and 18% opted to rent.
Perhaps most surprising is the propensity of the expatriates surveyed to work abroad again once the crisis is over. This may be borne out of a desire to travel, experience new cultures or potential tax benefits. Some 68% said they plan to work abroad again with 23% unsure and only 9% deciding to stay put.
Photo by Cris Tagupa on Unsplash