If you are planning to invest in real estates in Canada there are new trends that you need to consider to help you make a wise decision. Note that the Canadian market is going through a number of changes including the aging population and changing technology, all of which are transforming the market and evolving businesses. This post looks at the latest trends that have been identified, and which will shape investment ideas. dueast condos
Investors Are Acting Cautiously
The Canadian real estate market is changing fast and investors are moving to other areas that were initially not considered important. In the past few years, there has been a shift in investment with less speculative projects such as malls, warehouses condos and fulfilment centres attracting more investors than it was a few decades ago.
“Top –Tier” Properties Shortage
Real investment trusts and pension funds are investing in “top tier” properties. This is forcing small scale buyers to turn their attention to the less- coveted old properties that need to be updated and renovated before they can guarantee a steady stream of income to the investors.
Changing the Face of Office Leasing
A shortage of highly sought after properties has forced the non-institutional buyers to turn their attention to property they already own so as to increase their revenue. The heightened expectations on returns has affected the nature and duration of the leases and has brought in new ideas of splitting office spaces. Tenants are responding to this by allocating less spaces to their employees and opting for value at the expense of high end amenities.
The Strengthening Of the US Dollar
Even though the U.S. market has not fully recovered from the Great Recession, the U.S. dollar is outpacing the Canadian dollar. This is bound to make Canada more competitive and enable the real estate market to reap the benefits.
Fall In Oil Prices
Oil prices have been a major factor in the housing market. A drop in prices of oil is expected to spur growth in the real estate market because Investors will be moving their money from the less lucrative oil industry to the fast growing real estate market. Also, reduced pump prices mean that consumers will be spending less on fuel and use the money to bolster retail trade. This will strengthen commercial and industrial real estate market.
Canada is considered a safe haven for capital. The cheaper Canadian dollar is making the market less expensive. This is attracting investors eyeing the real estate market.
Increased Housing Affordability Concerns
Housing affordability is the number one agenda in the run up to the fourth coming federal elections in Canada. The plan to conserve more millions of acres of land has also affected the supply and is driving up housing prices. The rise in the cost of development and construction will further push the prices even higher.
Increased Number of Renters
The attitude towards renting are changing fast and there is a shift with most of the Canadian population ditching home ownership and turning to rental units. This is expected to increase the demand for rental units and attract more investors.
There are other trends such as suburb resilience where improved suburb transit infrastructure is making seekers look for cheaper options on the outskirts of the city. Changes in technology such as use of Google maps and e-commerce are also shaping the design and construction process.