With the change of TEAs (Targeted Employment Areas) in the new EB-5 regulations, the big urban developers who have dominated the EB-5 field over the years are now out of the EB-5 market entirely or are winding down. The change in TEA designations dramatically reduced the competition and in turn has created an immediate opportunity for those projects who are still qualified and in the market, such as our projects at Christian Tyler Properties.
We have historically offered smaller projects with up to 25 to 50 investors, rather than grossly oversized offerings that contain well over 100 investors in a single project; which could potentially provide even quicker turnaround and return of the investor families’ capital. We’ve also offered projects in geographical areas a-typical to the average EB-5 project, as our focus has always been on creating a sizable job cushion, providing reliable exit strategies, and quick turnaround times so that that our investors can have confidence in the security and return of their investment capital all while maximizing their green card application success.
EB-5 Supply and Demand
It is indisputable that, since the November 2019 change in the EB-5 Regs, the supply of capital has plunged more than 50% due to the change in TEAs and the demand for EB-5 has also fallen by nearly 50% due to the increased investment amount from $500K too $900K. But with that said, the great news is that with the supply and demand both being down by considerable amounts, the EB-5 market overall remains vibrant despite the program changes, with a prediction of $1.0 billion to $2.0 billion in EB-5 investments for 2020. And our projects qualify under these new Regs! We now find ourselves being sought after more than ever because our projects check off every box necessary to qualify under the current Regs.
Top Producers of EB-5 Petitions: Korea, Vietnam & India
India will continue to remain the number one EB-5 country in the world during 2020 as it was in 2019. Vietnam remains strong as the second EB-5 country in the world. As a surprise to the market, Korea overperformed rest of the EB-5 world during the grace period and is likely to perform strong in 2020 as demand remains at the $900k investment amount.
The EB-5 market is not close to being dead; but rather has evolved with fewer qualified projects to choose from. And because we preemptively planned for this day, our projects in our EB-5 platform are still going strong and remain just as attractive at the USD $900k investment requirement than they did at USD $500k. The source of countries providing the most EB-=5 petitions has changed: with India, Vietnam and Korea being the three with the strongest EB5 I-526 petition filings. If you have any questions about the content above, please reach out to our team at firstname.lastname@example.org. As always, we are here to serve you.