Let’s get into a few of the reasons why this is true. Why are institutional investors competing for rental stock?Īccording to PwC Canada’s Emerging Trends in Real Estate 2021 report, multi-family residential assets (including moderate-income and workforce apartments), are amongst the best real estate opportunities going into 2021. In both cases, this is a result of a significant shortage of rental supply. Niagara and Sudbury also have some of the lowest vacancy rates in all of Ontario, at 2.1 percent and 2.3 percent, respectively.Marie also suggested a seller’s market 88 percent and 94 percent respectively. Both cities had sales-to-new-listing-ratios exceeding 100 percent. Niagara’s market rang in at the seventh most competitive. As of November 2020, Sudbury had the most competitive real estate market in Canada.As such, institutional investors are in steep competition for rental stock. This owes to low volatility, positive and consistent ROI, and favourable financing options associated with multi-family assets. Multi-family residential assets have been dubbed one of the best real estate opportunities going into 2021.This number speaks to the strength and resilience of the segment. Despite restrictions on travel and immigration engendered by the ongoing pandemic, institutional investment firms are still collecting rents at a rate north of 90 percent.This article speaks to why there is high buyer and investor demand in hot Ontario submarkets, including Niagara, Sudbury, Hamilton, and Sault Ste. Ontario is home to several of Canada’s most competitive housing markets and institutional investors play a big role. Competition is steepened further by historically low stock in the segment. Rising demand for these particular property types has stemmed bidding wars amongst sophisticated institutional investors for rental stock. This extends to include decades-old rental stock, which accounts for a sizeable share of apartment inventory throughout Canada. As such, purpose-built rental units have become one of the safest and most lucrative asset classes for investors to settle their funds. The province’s rental segment, in particular, has experienced rapid market growth, as more people are turning to renting over homeownership than ever before. Amidst everything that’s been happening in the world over the past year, Ontario’s multi-family real estate segment has proved to be something of an outlier.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |