Modern Canada is a country with a rapidly developing economy. The influx of new labor force into the most intensive areas of development contributes to the growth of the residential real estate market in almost all more or less large settlements of the country. This is especially noticeable around large universities where many students have come to study in Canada.
At the same time, there is a significant difference between regions, both in terms of average housing costs and the rate of growth of such costs.
General trends in the residential real estate market in Canada
It should be noted that 53% of Canadians strive to own residential real estate. First of all, it is a profitable investment strategy. In addition, many regions of Canada are seen by pensioners as good places to live after they leave business. In particular, such places are the territories between Lake Erie and Ontario, as well as Vancouver and Kelowna Islands in British Columbia. Specialists predict further growth in demand for residential real estate throughout the country. At the same time it is planned to increase the cost of such real estate by 2% in 2017 (average for Canada).
Ontario – iridescent perspectives of the locomotive of the Canadian economy
In Ontario, there is a rapid growth in demand for residential real estate. Toronto and its satellite cities demonstrate the highest growth rates. In GTA-Oakville, the cost of housing increased by 24.7% over the year. This is the highest rate in the whole Canada. In addition, other cities that are part of Golden HorseShoe showed high growth rates. The region is the locomotive of the Canadian economy. It generates 38% of the country’s GDP. The most expensive city of Canada, in terms of housing prices, also became GTA-Oakville. As for the other cities of the province, they also showed an increase in prices. The prospects of Southern Ontario are very bright in any case. Therefore, experts predict a further rise in prices for residential real estate in this region.
Greater Toronto Area
Quebec – in anticipation of foreign investment
Today Quebec cannot boast of the attractiveness of the housing market for investment. The rate of price growth is very low, and the cost of housing is much lower than in Great Vancouver or Golden HorseShoe. However, the “low start” can make Montreal attractive for investors from all over the world. Especially from Asia. Therefore, experts are quite optimistic about the prospects of rising real estate prices in Montreal. The capital of the province of Quebec City did not show any growth in prices last year. Nevertheless, quite affordable prices for housing in this city also give grounds for optimism. However, experts predict a decline in housing prices in Quebec City, in 2017.
British Columbia – an investment in Canada’s future
Greater Vancouver – the most expensive city in 2015, in 2016 lost the championship to GTA-Oakville from Ontario. However, the sea gates of Canada with a developed IT-industry and industry, continue to be considered the most convenient city in the world. This is due to the high cost of housing in the city and stable demand for all types of residential real estate. In addition, the city constantly receives many immigrants, which make Vancouver one of the centers of the Canadian economy. Excellent climate and excellent infrastructure of cities on the island of Vancouver (Victoria, Nanaimo) attracts many wealthy retirees. The situation is the same in Kelowna, with its unique warm climate. However, in 2016, the Fraser Valley showed the highest growth rate, with a growth rate of 19.5%.
Canadian prairies – a victim of the hydrocarbon price situation
The provinces of Alberta, Saskatchewan and, to a lesser extent, Manitoba differ in their dependence on the level of prices for mining products. Recent low oil prices have led to a 3.6 percent drop in demand for housing in Calgary, one of Canada’s most successful cities. The situation is similar in the capital city of Alberta – Edmonton. The rate of price decline is somewhat lower in Saskatchewan. But in Winnipeg there is even a slight increase in the cost of residential real estate. Commissioning of the oil pipeline to British Columbia (Trans Mountain Pipeline) and increase in the volume of sold hydrocarbons, allows hoping for improvement of the situation in the whole region.
Atlantic Canada – territory of restrained optimism
The Atlantic provinces of Canada can boast neither high residential property prices nor their growth rate. The outflow of residents continues from the relatively depressed region. At the same time, the discovery of new oil fields in Newfoundland, a major order from the Canadian Royal Navy in Halifax and the emergence of various attractive provincial immigration programs, offer some hope for the future. In any case, Halifax and Charlottetown are already seeing quite a decent increase in residential property values.
St.John’s Area (Newfaudland)
Thus, the housing market in Canada is rapidly developing. And the efforts of the country’s government and the governments of individual provinces are rewarded with quite good prospects for Canada as a whole. In any case, Canada’s economic development in the coming years and the increase in the number of Canadian residents due to the influx of labor from abroad allow us to count on further growth of the real estate market in all regions of the country.