Real Estate Investing Opportunities in Canada

Sunday Feb 09th, 2020


Investing in real estate in Canada is now presenting more opportunities than ever before. This industry, despite the challenges, presents existing and prospective investors alike with the opportunity to survive and thrive while at the same time achieving financial independence. Contrary to what is seen in other regions, this industry in Canada manifests continued growth, rising incomes, a growing population, increased access to financing and new REIT opportunities featuring low minimum investment necessities. Thus:

The Opportunities Real Estate Represents for Investors in Canada

This serves as a description for the opportunities listed above to provide better insights for investors in Canada.

  1. Continued growth

While Canada’s unemployment graph displays joblessness has been at the bare minimum, economists have over the years considered a mark of “full unemployment” for a period exceeding a year. The continuation of such a trend is a good indicator that more businesses will need real estate, a promising boon to REITs invested in commercial properties like office buildings, manufacturing plants among other facilities, which provide premise for the workforce of a business.

  1. Rising incomes

The median Canadian household income has risen for the second year consecutively. Increases in the paychecks of workers also translate to an increase in consumer spending  with 80% of total GDP, which has the potential to fuel and therefore cause more demand for real estate investing in manufacturing, retail stores, warehouses and even distribution points. Together, these investments potentially increase returns for real estate investments which own and run on such properties.

  1. Growing population

Owing to the extensive population in Canada, people born after the year 2000 represent the majority of the living generation. With the increasing number of these millennials gaining independence and entering into the workforce, they begin to rent their own apartments. This increases the demand for multiple types of real estate, residential and commercial alike but with a more focus on commercial buildings.

  1. Continued access to financing

In Canada, the financing environment supports real estate with bank loans for Canadian real estate projects, which have consequently grown exceedingly robust thereby going over pre-recession levels. The increase in money lending institution’s trust and confidence on real estate in Canada is owed to the low interest rates, the rising demand for apartment units as well as the presence of foreign investors in Canadian real estate. The availability of financing can help real estate investors to add and improve their investments.

  1. New REITs opportunities with low minimum investment requirements

The rise in fresh categories of REITs has made real estate investing which are not traded on big stock exchanges available even for average investors.

Credit to the range of extensive opportunities in real estate for investors in Canada, investors now more than ever have the rare opportunity to upscale and expand their portfolios of properties in the industry. This means that real estate is now the investment choice with the most potential for growth and giving investors the best value for their finances.

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