Categorized | International

Canadian Real Estate Market Growing Too Competitive

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The commercial real estate market in Canada may have grown too fast and too popular for its own good. Investors around the world appear to be looking elsewhere to buy property in the current market, as the market in Canada has simply gotten too expensive one to realize some sort of profit.

Investors are, instead, looking at markets in the recovery phase, as properties in those areas are most likely to bring bigger returns than a market that is nearing, or has possibly already hit its peak. The United States, and various nations in Asia are becoming more popular choices for investors due to their low prices.

Those kinds of markets carry a slightly greater risk than a market like Canada at the current moment, though one could say that it is a calculated risk that will likely pay off quite lucratively in the coming years.

With that in mind, Canada has essentially become a victim of its own success. Areas like Toronto have grown exponentially over the last year, as has Calgary.

One of the factors that caused a decrease in interest by investors is that the nation does not have very many highly populated cities. One only need look at the difference in population between the United States and Canada to realize that there is greater potential for larger growth in the United States. The United States last census report shows that there are more than 311 million people living in the United States. That is almost nine times the amount that lives in Canada. In fact, Canada last reported only 34 million people as their total population.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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