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According to a new report on Canadian real estate trends for 2016, released by PwC Canada and ULI, foreign investors will begin to look past the Toronto and Vancouver markets, heading instead towards Montreal and Saskatoon.
The shift is caused in part by falling oil prices in Western Canada, which has prompted foreign buyers to look towards the East coast where the low loonie presents attractive opportunities.
Since the bulk of the country’s manufacturing sector is located in Quebec, local real estate markets are poised to reap the benefits of the currency’s drop. Analysts further speculate that development projects and raw land will be eyed with the keenest interest.
The combined national sales of office, industrial, retail, multi-unit residential and land has totalled $10.6 billion in the first half of 2015, $2.4 billion lower than it was a year ago. However, increased foreign capital — mainly from Asia — positions Canada for a busy end of 2015.
What does this mean for local investors? Prices will continue rising as international buyers flock to the market. In other words, investors with the intention of buying real estate within the next 12 months are advised to invest now, while prices are still low and competition is relatively light.