Are there any real estate investment opportunities in Canada?
In this article, discover real estate investment opportunities in Canada in a context of environmental, financial and social pressures.
With prices that defy all competition and have upset the habits of the French, Canada is a prime destination for real estate investment in North America. Canadian real estate companies have had some great years, but visions for 2023 have changed considerably. Against a backdrop of environmental, financial and social pressures, many Canadian real estate companies were anticipating a truce in market activity. Although the evolution of the sector in 2022 was seen as a percussion for some. In the long term, however, the outlook for the Canadian real estate market remains positive. The key to navigating this volatile and complex environment is a combination of patience and a willingness to take bold steps to generate sustainable growth and results in 2023 and beyond. So, what are the major advantages of investing in Canada? What are the main real estate investment and development opportunities in 2023, given this year’s trends? What are the best values on the Canadian real estate market in 2023, and what’s on offer to alleviate housing problems? Against a backdrop of environmental, financial and social pressures, many Canadian real estate companies were anticipating a truce in market activity.
Affordable and accessible real estate prices
In Vancouver and Toronto, the price per m² has already reached record levels (see below). The exception is Montreal: prices are rising, but remain more affordable than elsewhere. However, this price is not outrageous for a foreign investor, especially in certain neighborhoods, where you can afford a renovated, well-placed condo for a fraction of the price of an apartment in Paris.
A recognized and appreciable quality of life
Vancouver is often ranked among the top cities in North America for its quality of life. The same applies to Montreal and Toronto. The policy in Canada is that you go… and you stay. Canada is and remains a land of seduction.
French people are free to acquire and own property.
Canadian real estate investment rules are fairly flexible. French people are free to acquire and own property. You’re free to buy in Maple Country.
The blue chips of the Canadian real estate market in 2023
It concerns :
Multi-family housing : this market division was frequently mentioned as a safe bet, even if the outlook remains mixed. Firstly, factors such as increased immigration are boosting demand, both now and in the longer term.
Industrial: industrial real estate remains a safe bet, with sub-categories such as fulfillment, warehousing and data centers among the top exhortations for investment and development in our annual survey of industry players. Pressures affecting virtually the entire real estate sector, such as rising interest rates, are undoubtedly having an impact on industrial properties.
Life sciences: this segment of the market was even more in the respondents’ sights this year, and appeared to be one of their preferred investments. It also has its limitations, notably the fact that it is a rather small niche sector within the Canadian real estate landscape.
Canadian real estate companies on the road to sustainable results
This division of the market was frequently mentioned as a safe bet, even if the outlook remains mixed.
Supply at the heart of Canada’s affordable housing crisis solutions
The availability and cost of housing was ranked as the top social and political issue for residents, which is not surprising given that affordability issues have continued to evolve into a full-blown crisis in some sectors of the Canadian real estate market in 2022. The Bank of Canada’s moves to raise interest rates as part of its attempt to curb inflation have had an impact on the housing market, as rising interest rates are driving many potential buyers to try renting rather than buying a home.
Net zero and sustainability among the main challenges ESG issues in Canadian real estate
For the real estate industry, several factors support the growing obligation to take sustainable development and other elements of environmental, social and governance (ESG) performance into account. Indeed, a number of specific issues remain at the root of the increased attention in this area, notably the ability to attract capital. At a time when financing is both more expensive and less available
So where to buy?
The province of Quebec: Quebec is one of Canada’s ten provinces. Many Québécois are descendants of French colonists who settled in New France. There’s a hexagonal breeze blowing through this province.
Toronto: a must if you want to focus on English-speaking Canada. So, yes, the entry ticket may seem high, but investing in them is more than ever a safe haven.
We also have Ottawa.
Conclusion
The Canadian real estate sector has successfully weathered periods of uncertainty and challenge in the past, but is constantly evolving, so companies need to be confident in their ability to create value beyond the short term, and also to generate sustainable results in 2023 and beyond. The real estate sector therefore represents a serious asset with many opportunities.