The Future of Vancouver Real Estate
A major study conducted by PricewaterhouseCoopers and the Urban Land Institute, offers valuable insight into the real estate trends to be expected in 2016. The study is based on surveys collected from people involved in real estate and development industries across North America.
According to the findings, a migration to the suburbs and a greater interest in rentals are to be expected, specially in expensive markets like Vancouver.
“As economic power returns to the east, investors and developers are turning their attention to new opportunities in faster-growing Toronto and some parts of Montreal. Vancouver is the exception in the west, as it retains the top real estate investment spot,” the report states.
According to the Conference Board of Canada, Vancouver’s economic growth in 2015 and 2016 can be expected to remain strong, with an estimated GDP growth of 3.2 percent in 2016, according to the Conference Board of Canada.
The average 2016 home price in Vancouver is predicted to be $921,900, compared to $639,000 in Toronto and $344,000 in Montreal.
The study suggests that a growing number of people may decide to move away from the expenses of city life. The Suburbs, meanwhile, will themselves gradually become more urbanized.
The report states, “As it gets harder and harder to find affordable housing in Canada’s urban cores, frustrated homebuyers will start looking further afield.”
“Renting is no longer seen only as a temporary step on the road to home ownership, but as an alternative,” states the report. “We are seeing the rise of permanent renters.”
According to estimations, the best investments for 2016 will center around the following areas of the market: Mixed-use projects combining condominiums, offices, and retail space; outlet malls, and regional shopping centers; redevelopment of older properties.
Condos and rental apartments are still going to be a safe bet. “The market for condominiums remains solid in many parts of the country, particularly in Greater Vancouver and the Greater Toronto Area, especially as single-family home prices continue to rise,” states the report.
Foreign investment is also expected to continue contributing to increase in prices, expanding into the retail, office, hospitality and even agricultural sectors.
Overall, the report forecasts a “generally stable” real estate market through 2016.
The interest of foreign investors in the Canadian real estate market, specially that of Vancouver and Toronto, is also expected to remain intact.