- July 7, 2021
- Posted by: Stephane Tajick
- Category: Competitive Research Analysis
2020 has been an interesting year for CIPs. Many registered a falling performance, but some rose to the top.
One of the best performers this year is Grenada, and with a 106% increase in real estate investments! In fact, this is its 4th year with outstanding growth!
But what is it that makes 2020 special for Grenada? We’ll explain below…
Breaking FIVE Different Records
First, the program registered its highest yearly revenue in 2020. It hit EC$ 253 million. This was a 52% increase from 2020’s 166 million.
The second is an increase in application counts. The total received in 2020 is 394, an increase from 2019’s 373 applications.
Applications approved also increased as they hit their peak in 2020 at 375. This represents a sharp increase from 265 approvals in 2019.
Fourth is passport issuance. In 2020 that value surpassed 1000 for the first time (hitting 1111).
Finally, real estate investments increased by over double since 2019, with 2019 already being a record year!
What Were Approval Rates Like?
As is obvious, approval rates skyrocketed in 2020. That year saw 374 approvals versus 35 rejections, putting rejection rates at 8.9% (2019’s were 11.8%).
The rejection rates were still high compared to 2018’s 4.2%. However, family size has barely changed over time, staying around 3 members.
The majority of investors opted for Grenada’s real estate option. In Q3 and 4, real estate accounted for 58% of the total.
Those were the highest rates for real estate since 2016, where back them investment totals were much lower.
Grenada offers an NTF option. While its popularity did drop slightly in 2020, it nevertheless represented a large investor share.
The NTF category produced EC$ 84.2 million in 2020, compared to the 88 million of 2019.
The movement towards real estate has also increased government fee receipts, which doubled to 17 million from 8 million.
Why is Grenada’s CIP Performing Well?
There are multiple explanations for that.
One is Grenada’s visa status. It’s signified as E2 by the US, which allows Grenadian citizens visa-free access to the US.
It allows them to live and work there for free. This has made its passport a lucrative option for Chinese investors.
Another is the country’s adherence to JRCC due diligence protocols. This was pointed out by the US ambassador, and it a contributor to its diplomatic popularity.
This gave Grenada a reliable reputation in the Caribbean, especially with the current ongoing pandemic.
In fact, Grenada was one of many countries to refuse easing its CIP program minimums, which has been commonplace across the world.