The real estate market in Toronto is going to be a good place in 2015, according to market analysts. The latest figures show Toronto commercial real estate is expected to boom rather than bust in the next 16 months. The eases the minds of investors in the wake of the building boom the GTA has witnessed over the past decade, and more specifically the past three years.
It seems cranes have been a permanent fixture on the Toronto skyline since the late 1990’s. The entire western half of the downtown region, once barren to buildings over 5 stories, now evenly balances the other side of CN tower with 25+ story office and condo buildings. Filling in the skyline heavily, over 50 buildings over 20 stories in height have been completed or are planned since 2005. This, however, is why many investors were skittish about investing in Toronto.
Having just witnessed the housing boom and subsequent glut across the United States, many investors were wise to question the direction of Toronto real estate. At the prospect of history repeating itself, as it often does, investors had no intention of being left holding the bag when it came to investing in booming real estate. Luckily Toronto isn’t Florida.
Investing wisely in commercial property comes down to private interest, especially in condominium investment. And if there is no market interest in living in a certain area, investing there is not wise. Toronto investors have created a desirable neighborhood over these past 20 years people with money want to live in. This is why demand for Toronto real estate remains strong among rich global investors.
Looking at the figures, 36% of Toronto $1-2million condos sold at or over asking price, as did 41% of the condos between $2 million and $4 million. The concentrations of these sales were in ‘Condo Alley,’ in the Gardner Expressway core door. And as the new condo builds are witnessing vanishing vacancy, new builds are consistently on the horizon.