The Canadian real estate market is expected to remain steady with modestly good investment prospects across most property sectors next year, says PwC.
Here are some best investor bets in 2013.
Core real estate in major markets: Canada’s big cities offer opportunities to place money. They dominate these markets, enjoying consistent payoffs from solid income-producing properties across all property categories.
Read: How to build a real estate empire
Land bank in western markets: Take advantage of escalating inflows of workers, the exception being an unexpected reversal in energy and commodity markets. Buy and hold sites in and around larger cities, and you should see values escalate nicely. Infill sites also score development projects more quickly.
Read: A real estate empire: Closing the deal
Secure infill sites: Invest in any low-rise inner-city real estate, especially if located near mass transit.
Buy luxury condos: With urbanization baked into future demand, upscale space in the best downtown locations will reclaim any lost value quickly.
Read: The pros of private real estate
Also buy apartments: Like bond investments, landlords can increase rents, supported by high occupancies and steady appreciation. Confident lenders extend financing for next to nothing, and cap rates can reach shockingly low levels in some markets.
And here are the top two markets to watch.
1. Calgary
Growth in Calgary has made it challenging to acquire high quality real estate. Absorption of prime properties has reached record levels, and rents are being pushed due to limited supply. This trend will continue in 2013, especially in office and industrial employment space. Construction will increase in the housing and non-residential arenas, but nowhere near pre-crisis levels.
2. Edmonton
Edmonton is an example of a secondary market in search of high-quality real estate investments in strong economic locations. With Edmonton’s growth, comes more development and non-residential construction dominates the picture.