The Canadian housing market, despite its ups and downs is still a top choice for many commercial real estate investors as the global uncertainty hovering over the housing market is making many people to consider moving to other markets.
A recent report proposes that several commercial real estate buyers would rather invest in Canada than in the US as people are still not sure of effects of the new policies made by Donald Trump.
The global uncertainty is on the increase and according to Paul Morassutti, executive vice president and executive managing director for CBRE he would also like to add “geopolitical and economic uncertainty” to the picture.
Given the fact that United States with the most significant global economy is also in a state of uncertainty, it becomes a concern for other countries as to what new polices the US will make that will affect them.
The CBRE noted that Canada made a ground breaking year for the commercial real estate dealings of $34.7 billion worth property sales in 2016. There is an expected $32.9 billion drop this year in investment transactions but foreign investors are not slowing down their involvement in the housing market.
In 2016, foreign investors contributed about 27% of all housing transactions with Chinese investors making the greatest contribution of about 71% of all housing transactions in 2016, but things will hopefully take a different path this year as the new capital control introduced by the Chinese government earlier this year will prevent Chinese buyers from investing in the housing market.
European investors are also facing greater challenges, considering the Brexit, the National Front in France’s election wants to get out of the EU, Italy will probably follow suit and Greece is battling increasing debts. The European capital is on a rapid decrease and countless investors are looking for safe havens to invest in and from the look of things, Canada is the most favored destination and this is also what Chinese buyers are also seeking.
Many investors across the world are in admiration of the Canadian economy and housing market. The Canadian market has the lowest office vacancy rate in comparison to leading North American cities with the rental market expected to see an appealing increase. The country also has the second lowest industrial availability rate and also the second multifamily vacancy rate.