Go Canada! a lucky 2020!
Always considered as an extremely rich land, Canada seems to have found its size even in real estate. Like many other countries we have recently analyzed, it seems that in this case too, 2020 is a lucky year for Canada. So let's find out more by analyzing the current and potential Canadian real estate market. If you are also curious and maybe you want to invest in Canadian brick, you just have to read the next few lines!
Let's start with a wide-ranging vision, then go into detail. Earlier this month, it was revealed that investors entered the Canadian real estate market. We speak of offices, but also of residential, which is based on rental or sale contracts. There are therefore levels of growth but still not particularly significant.
In fact, demand cannot find a balanced offer so much that it can speak of a real relaunch of Canadian real estate. But it is probably a physiological factor, destined to improve.
The real power is in the hands of investors who also have the means to build, based on the needs of potential buyers. And of this type of investors, Canada is full of them. We know that, above all young people, they have gone on to play a purely marginal role in real estate, to a decidedly more predominant role. In doing so, the entire market has completely turned upside down, taking on trends more inclined to the needs of Millennials.
As far as offices are concerned, a strengthening of demand had already been noted already last year. At the end of the third quarter, the number, in percentage terms, of vacant offices was 12%. At the end of the year, office returns increased by 7% (national average). In detail :
Montreal: + 9%
Toronto: + 8.7%
Vancouver: + 10%
For landlords interested in selling it is an excellent time, especially for those who can offer a property in the center, an area extremely lacking in offers. The aim is therefore to create a significant impact, delimiting areas that could be of greatest interest to the potential buyer.
However, it is not possible to define with certainty what the results will be achieved in a year. What is certain is that the union between offices and companies will have a positive influence. Ditto the interest rate issue. Lower and lower, they encourage investors to purchase properties, defining the right historical moment.
However, renters are growing, for obvious reasons. Ease of encounter between supply and demand, easier prices and a decidedly higher contractual and economic flexibility than a sales contract.
What can I say, the Canadian situation, on the whole, seems to be really optimal, but still not enough to be able to talk about a real climax of real estate. Luck be with Canada!
Let's start with a wide-ranging vision, then go into detail. Earlier this month, it was revealed that investors entered the Canadian real estate market. We speak of offices, but also of residential, which is based on rental or sale contracts. There are therefore levels of growth but still not particularly significant.
In fact, demand cannot find a balanced offer so much that it can speak of a real relaunch of Canadian real estate. But it is probably a physiological factor, destined to improve.
The real power is in the hands of investors who also have the means to build, based on the needs of potential buyers. And of this type of investors, Canada is full of them. We know that, above all young people, they have gone on to play a purely marginal role in real estate, to a decidedly more predominant role. In doing so, the entire market has completely turned upside down, taking on trends more inclined to the needs of Millennials.
As far as offices are concerned, a strengthening of demand had already been noted already last year. At the end of the third quarter, the number, in percentage terms, of vacant offices was 12%. At the end of the year, office returns increased by 7% (national average). In detail :
Montreal: + 9%
Toronto: + 8.7%
Vancouver: + 10%
For landlords interested in selling it is an excellent time, especially for those who can offer a property in the center, an area extremely lacking in offers. The aim is therefore to create a significant impact, delimiting areas that could be of greatest interest to the potential buyer.
However, it is not possible to define with certainty what the results will be achieved in a year. What is certain is that the union between offices and companies will have a positive influence. Ditto the interest rate issue. Lower and lower, they encourage investors to purchase properties, defining the right historical moment.
However, renters are growing, for obvious reasons. Ease of encounter between supply and demand, easier prices and a decidedly higher contractual and economic flexibility than a sales contract.
What can I say, the Canadian situation, on the whole, seems to be really optimal, but still not enough to be able to talk about a real climax of real estate. Luck be with Canada!
