Urban Land Institute (ULI) and PricewaterhouseCoopers (PwC) recently jointly released their Emerging Trends in Real Estate report.
Saves time, less maintenance
The desire to save time is one of several factors cited by the growing number of Canadians who are turning to alternative styles of housing, ranging from narrow houses to tiny ones to those sandwiched into laneways between other homes.
Other factors include environmental considerations — smaller homes require less power to heat — and affordability concerns, as home prices in certain Canadian cities continue to soar out of reach for many.
In 2006, when a single-family home for half a million dollars was hard to come by in Victoria, Fayle snatched up her house for $275,000 — a paltry sum for a 1,000 square-foot space located less than three kilometres from the downtown of one the country's most desirable cities.
The annual report identifies what investors should look out for in Canada and the United States real estate market over the next year, drawing on a large number of sources. ULI, a nonprofit organization and research, and PwC, the global advisory firm, published a report every autumn.
For the purpose 102-page report, ULI and PwC surveyed and interviewed more than 1,400 industry experts from investors and fund managers to developers and consultants.
Frank magliocco, national leader of PwC's real estate practice, described in a statement a few changes in the Canadian market is experiencing.
"From the aging Canadian population creates opportunities in the market sub-sectors such as health, changing demand for space technology, investor and business practices of construction itself, recognizes industry players that this opportunity will benefit from the growing market," he explained.
Here is an overview of the trends outlined in section 37 Canada's annual Emerging Trends in Real Estate report.
1. Investors are acting with caution
Instead of the real estate bubble burst, ULI and PwC expect to see market activity flow from west to east and toward the less speculative investments such as warehouses, shopping malls, and fulfillment centers. "More than anything, it seems that the respondents believe that the Canadian market is due to take a breather rather than take a dive," according to the report.
2. Lack of "top-tier" property for some
Top-tier properties to sell, but buyers such as pension funds and real estate investment trusts throw their weight around, according to the report. That led to a small-scale buyers to change the direction of older, less-desirable properties that require more renovations and upgrades to see a return on investment.
3. Changing the face of the rental office
Given the shortage of highly sought-after property available for non-institutional buyers, some simply switch to the property they own to increase the yield. This has an effect on the nature of leasing, the report suggested. With the hope that increased the landlords' to refund the current ownership, office space were separated and that the longer the lease. Meanwhile, tenants allocate less space per employee and high-end facilities mentioned above, opting for value instead.
4. The US dollar as a source of optimism
With the uncertain economic conditions in China and Europe, Canadian companies are looking for in the United States to increase investment, although the US recovery from the Great Recession has not been very strong. Regardless, the US dollar exceeded the Canadian dollar, and this could prove beneficial for the market here at home. Industrial real estate market East market can reap the benefits of this in 2016, the report predicted.
5. The effect of lower oil prices
In an informal survey of economists BuzzBuzzHome news from major Canadian banks this August, the price of oil was identified as one of the housing-market factors to watch for the rest of the year. Emerging Trends report suggests this will continue throughout 2016. While the activities of large-property-ownership has been stagnant in Alberta, the decline in oil prices could spur growth in other areas.
In certain gas pump savings could have a ripple effect. Businesses and consumers are spending less on fuel may choose to direct their savings elsewhere, strengthening retail, for example. The end result could strengthen the commercial real estate market and the industry.
6. Foreign investors eyeing real estate Canada
Global investors continue to view Canada as a safe haven for their capital, and a lower Canadian dollar only adds to the appeal of the country. Many respondents expect foreign investment continues to flow into real estate Canada - not just to the hottest markets in Vancouver and Toronto, but also to Montreal and even Saskatoon, where interest in agricultural land and land development increases.
7. heightening concerns housing affordability
Housing affordability is a key issue in the run up to the Canadian federal election. It is also a trend to watch in the nation's housing market, according to the Emerging Trends in Real Estate report. It identifies a number of factors that he was raising the price of housing. For example, in Ontario, legislation greenbelt produce a plan to save 1.8 million acres of land, affecting the supply of land. Additional costs associated with application development and construction fueled home prices after the unit hit the market.
Small housing growing trend in real estate Canada
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