The real estate markets in the year 2021 in Canada have a huge dependency on two major factors. These factors includes immigration policies and the results of the previous year. It is imperative of the fact that these markets are expected to behave rationally, however, there are certain factors that will effects its behaviours & past performances. These effects are due to the un-expected performances in 2020 mainly outlines the reasons being the pandemic. However, experts believe that it is better to avoid investing in Real Estate markets of Toronto. More importantly they think that due to COVID-19 pandemic effects that are still evident. This is especially true for the commercial sector and variances in commercial properties in Toronto.
Favoured for the immigration purposes by most migrants are the cities like Toronto and Vancouver. Therefore, the immigration targets of around 400K in the next year, i.e. 2021 can be a huge positive for the real estate markets to boost to their normal behaviours. However, still from the investment point of view it is an expected downturn regards to the commercial sector in Canada. The planned rise in immigration levels in 2021, i.e. 400,000 applicants is all due to the adverse effects of pandemic COVID-19. Vitally, to a huge extent as the number of entrants coming to Canada was reduced considerably.
REAL ESTATE OPPORTUNITIES 2021- AN ANALYSIS OF THE ACTIVITIES:
For the current recovery to take place at a rapid and constant pace. Chosen as the pioneer for its flexible capacities and shining image is the real estate sector Canada. A period that will take at least 2 years’ time to reach back to the normal shining state. Therefore, the activity is strong and reflects the pent up demand and also the increased domestic investment activity.
The opportunity in real estate is evident through a research poll that says 35% of the respondents of the homeowners are considering to buy an additional unit. The reasons being lower interest rates and the market being at a far softer side. Seen as a bright and opportune moment for investors due to lower interest rates. Ironically, an opportunity that the investors have been waiting for since a long time, i.e. winter 2019. Real estate experts in Toronto believes that the market will stay softer for at least 2-3 months.
Similarly, the housing markets will also feel the impacts and these impacts are distinctively associated with the mortgage payments. Hence, having a huge negative impact on the overall housing activity as well. According to another market expert for Mortgages and Real estate Toronto, overall there will be strong two to three months followed by some softening in the activity that will start during late fall and winter seasons. Stronger than normal are the expectancy for the spring season to behave than normal. COVID-19, the pandemic’s second wave is the main reason for the seasonal variations in market behaviours in 2021. Furthermore, the way the pandemic effects will diffuse from the property and real estate sector.
HOW IS COVID-19 IMPACTING THE ECONOMY & THE REAL ESTATE?
As many sectors have been affected because of impacts of COVID-19, so is the real estate and business sector. Hotel business, bar business and the restaurant business are the three where the effects are seen mostly. This is primarily along with the retail sector of Canada being most affected. Hence, there have been mass casualties as well that have increased the fear of life and business activities. However, the question rises that will the effects be short term, medium term or long term. As the market behaviours fluctuate from rise and falls. In the real estate sector the effects are medium-term. It’s important for the investors to make smart strategic plans, as well as the policy makers in the immigration industry in Canada.
Over the term of three to five years the Toronto markets being the most prominent ones shall have a great future. A number of new hotels opening which means more five-star and four-star brands. On the commercial side in Toronto and suburbs there are new office buildings on the verge of completion. Furthermore, companies from Europe and Asia are investing heavily in the Real Estate commercial sector in Toronto. As the top city of North America and the city of future in five years. More obviously, Toronto is expected to replace New York, as the No. 1 city in North Americas. Not only in terms of real estate at the commercial side, but in the housing sector as well. The year 2021 is the year of recovery for affected Canada’s real estate markets.