By Mark McLean, TREB President
Lately there has been much discussion about the level of foreign investment in Canadian real estate. The first question tends to be is Canadian real estate sustainable? There are a lot of components that add up to make a nation like Canada such an investment hot spot for foreigners. The first of the components starts with our world accreditation.
It’s no surprise that there is talk of foreign investor interests when Canada houses world-class cities like Toronto, Vancouver and Calgary. Our nation routinely ranks among the world’s best places to live, particularly with respect to quality of life. Not to mention our various accolades for customer service, economic freedom and fostering the well being of our seniors.
Toronto alone has received recognition for being named the world’s most tax competitive major city, one of the top destinations of global job seekers, and one of the most influential cities on the planet. Keeping all these accomplishments in mind, lets compare how the price of property in Toronto stacks up against other world cities.
Consider for example, that according to Knight Frank’s 2014 Wealth Report, $1 million will get you 25.2m2 of living space in London and 20.6 m2 in Hong Kong. In New York, Sydney and Paris you would fare a little better at 40.2m2, 41.2m2 and 41.7m2 respectively.
While we may have tied with Los Angeles as one of the world’s most influential cities, here in Toronto you can generally buy more than the 64.3m2 of living space that is available for $1 million in Los Angeles.
The Greater Toronto Area is home to some of the highest quality of life standards in the world, and greater affordability. We’re fortunate to have historically low interest rates and a job market that is on the upswing. Combined, these characteristics point to the fact that investing in property in the GTA will continue to represent a smart long term investment strategy.
For more information on making the transition to your next property, if commercial property is what interests you, contact a TREB Commercial Professional Member REALTOR® by visiting trebcommercial.com or talk to a Greater Toronto REALTOR® and visit www.TREBHome.com.