This option suits foreign investors who wish to make a secure, lucrative investment. For these investors, Canadian real estate provides unparalleled investment opportunities because of sustained and continued growth in demand.
CANADA’S ECONOMY
- Canada is the world’s second-largest country by land area and the 10th largest economy.
- Leading sectors include automotive, manufacturing, construction, healthcare, forest products, minerals, and petroleum.
- Contributing most to the increase of 4.8 percentage points at the national level in 2021 was the province of Ontario, which accounted for 1.79 percentage points, which is over one-third of the total GDP growth.
CANADA’S POPULATION GROWTH
In 2022, Canada welcomed 437,180 immigrants and the number of non-permanent residents increased by a net 607,782 people. In February 2022, Canada tabled its 2022–24 Immigration Levels Plan. It aimed to continue welcoming immigrants at a rate of about 1% of Canada’s population per year, including 431,645 permanent residents in 2022, 447,055 in 2023, and 451,000 in 2024. In November 2022, Canada tabled its 2023–25 Immigration Levels Plan. It increased the annual immigration goals targeting 465,000 in 2023, 485,000 in 2024 and up to 500,000 in 2025. Currently, annual immigration in Canada amounts to around 500,000 new immigrants – one of the highest rates per population of any country in the world. As of 2022, there were more than eight million immigrants with permanent residence living in Canada — roughly 20 percent of the total Canadian population.
ONTARIO OVERVIEW
Ontario is Canada’s most populous and second-largest province by area, bordered by Quebec to the east and Manitoba to the west. The region’s two major urban centers include the province’s capital city, Toronto, and the nation’s capital, Ottawa.
Ontario is home to almost 40% of Canada’s population. Statistics Canada estimates the population of Ontario to be 15.3 million people. The increase is mainly driven by net international migration. The future of Ontario is extremely bright.
- Population
International net migration is the biggest driver of growth in Ontario, and Toronto has the highest population growth rate among all census metropolitan areas in Canada.
- Investments
Ontario’s diverse and innovative economy will continue to attract businesses and workers from around the world. Additionally, the provincial government’s investments in infrastructure, health care and education will support the recovery and growth of various sectors.
- Economy
Over the next 10 years, Ontario’s labor market is forecasted to grow by approximately 1,100,000 job openings. These openings will be created from both expansion demand due to economic growth and replacement demand resulting from people leaving their occupations.
GTA OVERVIEW
The Greater Toronto Area (GTA) has a population of 6.2 million (2021 Census). It includes the city of Toronto and four regional municipalities. It is a total land area of 7,125 km (2,751 miles).
The fundamental factors that underpin our investment thesis, particularly those that cause a severe disequilibrium between the demand for housing and its supply have historically resulted in sustainable, long-term price and rent appreciation. Reasons for this include:
- Restrictive land use policies – A lack of available land in the GTA and parts of the broader GGH coupled with an onerous and time-consuming planning process continue to be critical factors in limiting the availability of new construction inventory.
- Strong population growth – The demand for housing in Toronto has been driven by a growing population. The Greater Toronto & Hamilton Area (‘GTHA’) population is expected to increase by more than 3.4 million residents by 2051.
- Diverse workforce and economy – The GTA’s diversified, and highly technical workforce allows for better market insulation if a particular sector of the economy experiences a slowdown. In 2021, Toronto ranked #1 in the CBRE 2021 North America Scoring Tech Talent Report (a breakdown of tech talent by city in North America). The top three sectors of Toronto’s economy include finance, healthcare, and professional/technical services.
Because of the above factors, major global companies are routinely investing in Canada. These developments will undoubtedly have a further positive impact on the Canadian real estate market.
In short, by investing in a stable and growing GTA real estate market, investors could reap not only periodic return (i.e., regular income stream in terms of monthly lease payments) but also significant capital gain return (because of price appreciation in the real assets).
– Real estate investment opportunities are offered in collaboration with RE/MAX Canada.
– Mortgage financing solutions are offered in collaboration with The Mortgage Centre Canada.