Donald Trump Has A Positive Effect On Canada’s Real Estate

Last year held a lot of surprise for people all over the world from the U.K voting to leave the European Union to Donald Trump being elected as the U.S. president. These events lead to great uncertainty amongst people but few could predict that it would be beneficial to the Canadian real estate market.

At the Real Capital conference held this week, Mark Renzoni, president and chief executive of CBRE disclosed that the effects of BREXIT AND Donald Trump had been a great boost in regards to Canada’s real estate market.

Donald Trump has left uncertainty in people globally leading many to search for safe havens and one of such most sort destinations is Canada. The Canadian value of promoting diversity is luring more foreign investors to the real estate market with foreign buyers accounting for more than a quarter of all investments in 2016.

However, Toronto is taking the lead amongst other market for foreign investor’s participation. This is quite evident in the city’s downtown office vacancy rate which is the lowest in comparison to other North American city.

In addition to this, Toronto has the second-lowest industrial availability in North America. Multi-family vacancy rates are also one of the lowest on the continent.

Toronto was also ranked in the top 10 international cities for drawing in talent with most of the hotels in the city full.

There were also record high prices in the commercial real estate market with over $12 million made in 2016.

Immigrants are mostly attracted to the country’s low currency coupled with the flexibly immigration policies most especially in the tech industry. The tech industry is contributing immensely towards the economy through its current leasing activity.

Canadian commercial real estate executives also went on to sing the praises of the industry highlighting that real estate markets all over the market are expected to increase no matter what.

Paul Morassutti, executive vice-president and executive managing director of CBRE Ltd. stated that the diminishing likelihood of economic growth, unequal levels of international uncertainty and enhancement in technology are fueling the reports of a possible change.