2014 has heralded a period of growing interest in Canadian real estate from foreign investors. In fact, this attention toward Canada’s market is said to be growing exponentially, mainly due to Canada’s relatively stable economy. While the rest of the world has struggled through a prolonged recession, Canadian banks and capital markets have continued to remain healthy.
Richard Crenian, founder and president of ReDev Properties Ltd, sees foreign interest in Canadian real estate as valid. “Canadian real estate is a very promising investment right now,” says Crenian. “In Alberta, for example, there are no new taxes and a massive, multi-billion dollar surplus will undoubtedly help existing local businesses expand. Coupled with a boom in new construction and school growth, all of this will result in an incredibly appealing opportunity for investors elsewhere in the world.”
Since founding ReDev Properties Ltd in 2001, Crenian has grown the asset management company using a long-term approach to manage over 25 commercial properties, primarily located in Western Canada, on behalf of over 2,500 investors worldwide.
According to Canadian Real Estate Magazine, the best mortgage rates are currently hovering around 3 per cent. Five-year mortgage rates are at record lows.
Recent Canada Mortgage and Housing Corporation (CMHC) stats further reveal that there were 185,939 new home starts in June of this year, as compared to 184,019 in May.
“This is in line with CMHC’s analysis indicating that the new home construction market in Canada is headed for a soft landing in 2014,” says Bob Dugan, Chief Economist for the CMHC. “Builders are expected to continue to manage their building activity to ensure that demand from buyers seeking a new unit is channeled toward unsold units, whether these are under construction or completed.”
Starts have been increasing particularly in the Atlantic Canada and Prairies regions, while decreasing in Quebec, Ontario, and British Columbia. Still, a report from The Toronto Star marks Toronto as the hottest housing market in the country.
The Canadian Real Estate Board will release its latest data on sales of existing homes next week. According to The Globe and Mail, local boards have been painting a picture “of strength,” particularly in high population markets like Toronto and Vancouver.
High-end home sales are said to be booming across the country, and the outlook is similarly positive for cabins, cottages, camps, and condos.
“It’s no wonder foreign interest is on the rise,” says Richard Crenian. “Low vacancies have resulted in an explosion of development, resulting in massive real estate growth. As more and more investors all over the world are now recognizing, commercial real estate here in Canada is an attractive, viable investment platform.”