Real estate is one of the most effective means of turning capital into profit quickly. Whether you are buying houses to flip, or purchasing property to build new structures on, the real estate market is in full swing right now.
Canada has exciting investment opportunities for real estate investing, and we have put together a list of cities that offer some of the best locations in the country.
Vancouver could be the best location to invest your real estate money in this coming year. The area offers excellent opportunities for both investment and development that are almost unrivaled. The Conference Board of Canada (CBoC) is also projecting a healthy economic growth of more than 3%, which means more property buyers will be looking for homes.
The demand for rental properties in the area is strong and estimates show there is not enough construction taking place to lower demand for existing homes. There is also the opportunity to develop along the Broadway subway project, which is now officially underway. New developments along the project show the potential to be great earners.
Aside from home buyers and rental investments, the office space market is also growing. Vancouver is home to a burgeoning technology sector and this boom is bringing new business to town. New business means more office space is needed, and this translates to money for real estate investors.
Industrial property is also a high earner in the area and the demand is strong. Currently the industrial vacancy rate sits at 0.1%, which is the lowest in the country. Couple that with a 22.5% year over year rise in asking net rent and you have an investment that will yield an excellent return.
Toronto offers great returns on real estate investments. The metro area is on the verge of what some people believe will be a great population boom. While there is a little uncertainty regarding the short term, Toronto is definitely going to grow over the long term.
The city's Gross Domestic Product is expected to rise by 3.5% this year, meaning more people will have jobs and more jobs will be created. This in turn, will bring people to the city, increasing demand for rental homes and apartments.
There are a few obstacles to consider in the short term. One of those being that the city of Toronto plans to raise development charges for residential areas by 46% by 2024. However, in spite of that, the demand for homes will still be enough to make the area a profitable investment.
Currently office demand is only slightly higher than during the full swing of the pandemic. While traffic has increased there is some uncertainty regarding how soon the workforce will return in full to the offices - if ever.
Calgary equals oil town, which means big money for real estate investors. The city is in the process of creating a strong economic recovery and higher oil prices are definitely helping that effort.
Job growth, affordability and other factors have all contributed to Calgary's rise in recognition as a desirable place to live.
While there is a lot of debate over what to do with existing office space that is no longer being used by corporations, the city is considering repurposing it to residential use. If that becomes reality, the investment opportunity is enormous, and could present huge profits for initial investors.
Industrial investments also pay off in the area. Current estimates show only 2.4% of Calgary's industrial properties are vacant, which means demand is present. Owning the right piece of industrial property along the edges of the city could pay a high return on a long term investment.
Ottawa comes with the added benefit of government tenants. Investing in the capital city has become a major benefit for real estate investors. Along with high demand for housing, office space is also necessary to house the various agencies and organizations that make up the Canadian government.
Construction of the second stage of the light rail line has caused a boom in demand for multi-family dwellings near the stops. Ease of access to the trains means tenants can get to work easier and this makes rental properties near the tracks desirable for investors to own.
With a vacancy rate of just 1.1%, the industrial sector is also profitable. There is plenty of opportunity to invest in the city and, there is almost no sector that does not offer high demand.
Quebec city had the highest number of housing starts in 30 years in 2021. This was boosted by residential rental properties being built to meet demand. In spite of hitting record numbers there is still a higher demand expected than the supply chain can meet, making this a top choice for rental property owners.
There is some uncertainty due to the upcoming tramway project. Although the project was given the green light and is expected to begin construction next year, the route has not yet been fully decided. This has caused some concern for investors regarding the best areas to invest in.
The office and industrial markets are also in full swing. However, the industrial demand definitely outpaces the desire for office space. Currently, many companies are renewing only short term leases on office space as they lay out new policies post pandemic concerning employees' ability to do their jobs from home.
Comments(0)