In today’s ever-changing economy, global investors face a broad landscape of business challenges and opportunities. Despite the recent economic problems in other sectors, the real estate market in Canada continues to fare well, thanks in part to continuous historically low mortgage rates and relatively strong economic growth (under the circumstances). Real estate opportunities in Canada, recently published by Grant Thornton LLP and produced with the assistance of Colliers International, provides a framework for foreign investors looking to take advantage of opportunities in Canadian real estate.
The commercial property market in Canada has benefited from a stable economy and the continued health of the banks and capital markets. According to Investment Property Databank’s (IPD) 2011 Global Annual Property Index, capital growth combined with income growth to provide a total return for all property types in Canada of nearly 16%, placing Canada at the very top of the IPD Index.
“Commercial property in Canada continues to be a keenly sought-after investment product. The combination of solid market fundamentals, such as low vacancy, stable-to-rising rental rates and readily available capital through both debt and equity offerings, has driven prices up,” says Bo Mocherniak, CA, CBV, Partner, National Leader, Construction, Real Estate and Hospitality. “Many foreign investors are looking for places to invest their capital and Canada is consistently cited as a preferred destination. Canadian commercial real estate gives them what they’re looking for—a stable economy with a reasonable return.”
In Canada, there are specific rules and regulations for those interested in investing in real estate. This guide is designed to help foreign investors navigate these new waters. It outline factors that should be considered when a non-resident wants to undertake real estate activities in Canada, and contains a wealth of information foreign investors might need to know to familiarize themselves with the Canadian landscape. It also includes a detailed profile of the residential and commercial property market, as well as information on banking, capital markets, government incentives, sources of financing and tax obligations for non-residents. The report also features an economic outlook for various types of commercial, leisure/hospitality and residential property types.