This option suits foreign investors, who are not interested in an immigration/citizenship option and instead only wish to make a secure, lucrative investment. For this investors, Downtown Toronto real estate provides unparalleled investment opportunities because of sustained and continued growth in demand.
In 2019, tighter market conditions in the GTA condo market translated into increased competition between buyers and an accelerated pace of price growth. The Toronto Condo Apartment Vacancy Rate stands is historically low and stands at only 0.7%. The average price of a condominium apartment increased by 10.4 per cent from $558,733 in Q4 2018 to $616,591 in Q4 2019. [Source: TREB Releases Q4 2019 Condo Market Statistics]
The demand is growing because of Canada’s flexible immigration policies, safety, business opportunities:
- Toronto is the safest city in North America
- Toronto has been ranked the 4th safest city in the world.
- Toronto and Montreal are the top two best places to live in the world according to an index of city rankings compiled by The Economist.
- The Canadian government plans to bring in more than 1.2 million immigrants over the next three years, despite hurdles created by the global pandemic. Canada will accept 401,000 new permanent residents in 2021, 411,000 in 2022 and 421,000 in 2023.
Because of these factors major global companies are routinely investing in Toronto. These developments will undoubtedly have a further positive impact on Downtown Toronto’s real estate.
In short, by investing in a stable and growing downtown Toronto condo market, investors could reap not only periodic return (i.e., regular income stream in terms of monthly rental payments) but also signification capital gain return (because of price appreciation in the real assets).