Investing in Toronto

An overview of investing in Canada

According to the CREA:

  • The average price of a two-storey single family home posted the strongest year-on-year gains of 17.9% in February 2017.
  • Townhouses / row houses prices also increased by 16% in February 2017 from a year earlier.
  • The national average price of a one-storey single family home rose by 15% during the year to February 2017.
  • Apartment prices increased by 13.7%, on average, over the same period.

The level of geopolitical uncertainty and economic uncertainty in the world is high and new reports suggest commercial real estate investors prefer Canada over the other countries because of numerous supporting federal and provincial programs. A lot of investors saying we want safety and Canada looks really safe. CBRE said Canada is coming off a record-breaking year for commercial real estate transactions with $34.7 billion in property changing hands in 2016 and the real estate company says the demand from foreign buyers will not slow down. Foreign capital took 27% of all sales in 2016 and Chinese investors accounted for 71% of all foreign transactions in 2016. “European instability also continues to drive capital from that market”, said Paul Morassutti, executive vice president and executive managing director for CBRE in Canada. The real estate company says “Toronto envy” is driving some of the demand. “Toronto starts 2017 on the A-list of commercial real estate markets. Real estate players from cities across the globe are casting envious glances at its performance. The numbers are truly compelling. It has the lowest downtown office vacancy rate of any major North American city with good rental growth projected for 2017, it has the second lowest industrial availability rate, the second lowest multifamily vacancy rate and its hotels recorded record occupancy levels in 2016,” said Morassutti.