Homes, homes and lands: Why does the diaspora invest so much in real estate?

Rafuna was extremely precise about the percentage of money spent on diaspora in the real estate sector. OEK's chairman stressed that 80 percent of investments from the diaspora focus on land, housing and housing.

“And we're suffering for a good plan or strategy orientation of diaspora remittances. If you look at the Kosovo Central Bank reports, you can see that we can freely express ourselves that over 80% of diaspora investments go to real estate, housing, drilling, land, so here as well as production is export. ” he said.

But why do they buy so much land, homes, and exiles?

In the interview, Rafuna gave an answer, though indirect. Rafuna spoke of the lack of an investment strategy from the diaspora, while suggesting drafting a strategy that helps the Kosovo diaspora direct remittances and investments in sectors that help the country's economic development.

And even here, there's a strategy that helps our diaspora where the reorient remittances are. A good strategy is needed to help our diaspora get involved in good economic development projects in the country, but also in good return for our diaspora. Proposals must come from domestic institutions, but there are various kinds of models, all kinds of possibilities, just the question now of where our government sees it as most useful. ” rhefuna.

The figure given by Rafuna also agrees with economist Lulzim Beqiri. In a proposal for Nacional, Beqiri estimated that only 6 per cent of investments from the diaspora are directed to the trade sector.

According to the research I've done, about 80 percent of the revenues from the diaspora are used for purchase of real estate, consumption, food, clothing, spare material, about 6 percent of them invested in trade, and this comes from lack of investment alternatives, the state offers no alternative investment, and often accuses the judiciary of not efficient contributing to investment uncertainty from the diaspora. ” ] declared Beqiri for Nationale.

On the other hand, Beqiri stressed the need for drafting a developmental policy regarding the diaspora.

“State needs to draft development policies with a particular focus on remittances from the diaspora, a good opportunity would be investment in the sovereign fund, then in public companies in production, but still there is not a proper serious development strategy for investments from the diaspora.” completed it.

In terms of foreign direct investments, days ago the other analyst, Shenoll Muharremi, who described the figures provided by the Ministry of Industry, Trade and Trade as manipulation. Muharrem wrote that most investments are in the real estate sector, which is purchased mainly by the diaspora.

The absolute amount of investment is in real estate purchases of residences from the diaspora (6.8% last year). Look carefully, it doesn't even mention real estate that is the main activity, but it creates the impression that we have invested in the production of all of this industry. From $374m to 2023 maybe $230m is just in the unremembered real estate! According to data, the government has no credit for foreign investment that they are made from diaspora mainly in residences. The government doesn't know it brought in 2-3 projects alone. ” wrote.