We all know that foreign investment is important to the health of our housing market. While they’re certainly not the backbone of it, if we were to restrict investments coming in from other countries (as some have suggested we do,) our market would definitely take a hit and show a significant downturn. That’s why the fact that Canada has recently been ranked as one of the top five real estate destinations for foreign investments is such good news to those who want to see the market continue on its steady and healthy stroll (which, is just about all of us.) These results come from a recent report written by Ernst & Young.
Of all the countries taken into consideration for the report, Canada came in fifth overall. Sure that’s the last place in the top five, but even being in the category spells good news for our nation. The markets that were above us might be surprising to some, as many are emerging markets. They included China, Qatar, Chile, and India.
“Confidence is returning to the sector as credit availability and strong industry fundamentals create a more stable foundation for deal-making,” says Krista Blaikie, a National Real Estate Leader with Ernst & Young. “Companies that were focused on maintaining stability and operational efficiency are now shifting gears and looking ahead at new investment opportunities.”
Statistically, the optimism that foreign investors felt about buying real estate in our country was up 53 per cent from one year ago, according to the report.
“Investors are looking beyond the developed world – with the exception of Canada – and focusing their investment strategies in emerging markets with immense growth potential,” Blaikie continues.
“Canada, on the other hand, continues to attract the attention of investors searching for a stable political and economic environment not found in the Eurozone.
Those that are ready to make transactions might be focusing on commercial properties or entire condo and apartment buildings, even though Ernst & Young targets these as “smaller deals.” 64 per cent of those that responded said that the majority of deals will fall between $51 million USD to $500 million USD.
“Making the most of transaction opportunities, whether small or large, depends on a thorough understanding of the local market, regulatory environment and culture. Those that perform thorough due diligence and select the right partners will be best positioned for sustainable growth,” says Blaikie.
