Canadian Real Estate Could Possibly Gain From Global Concern

The Canadian real estate has been seeing the growing interest of foreign buyers who play a vital role to the growth of Canada’s economy.

The federal government and several other provincial governments have made several efforts to curb foreign buyer’s interest in the Canadian real estate market. But with an increasing global uncertainty about the current distress in Europe and the impacts of Donald Trump, it lives people to wonder, could Canada’s real estate market gain from the global uncertainty?

Last year, Canada received a record high figure for commercial property transactions of $34.7 billion, but this figure is projected to decline to $31.9 billion this year as a result of decline in local investment while foreign investment continues to escalate.

In 2016, foreign investors accounted for 27% of all property sales which is an estimated $10 million with Chinese buyers accounting for 71% of all foreign sales. This leaves market spectators to debate why there is a growing interest of foreign buyers in Canadian real estate market?

With the UK, about to leave the European Union, many European real estate markets are looking good as people continue to be uncertain of what will happen next. Europe in general is in a complete turmoil as many countries across Europe are going through financial struggles and from the look of things, European real market is not a destination investors would want to involve in for the time being.

There is also a growing concern over the US despite the fact that the stock market has been performing really good since Donald Trump stepped into office, but people are worried about the impact he will have on the real estate market.

Many believe the president Donald Trump will have a positive effect on the real estate market as most of his wealth and line of business is in real estate. And although many have taken Donald Trump for his word in making the real estate market buoyant, there are however doubts on how he will actualize his words.

Even though Europe and the US are showing promising signs of providing extremely good real estate values, it is quite certain that foreign investors interest in Canada’s real estate market will continue to increase. The coming years will be quite interesting to watch as Chinese investors who account for the majority of foreign investments in Canada are also being restricted by China’s government about the amount of money they can use on real estate investments.