More concern over the fiscal cliff in the U.S. is set to boost the current boom in investment in Alberta, Canada in 2013. In fact, already stellar projections for commercial real estate investment in the province will likely be dramatically outperformed due to a combination of factors stemming from economic shifts in the U.S.Alberta Top for Global Investment in 2013
Calgary and Edmonton are already expected to remain top global investment hotspots for 2013.
Incredible returns and tens of billions in commercial real estate investment over the last 2 years have these Alberta cities on the radar for international investors as some of the most desirable places on the planet to invest for wealth protection, growth and yield.
The attraction to prime London property has been dwindling among confusion over its direction, increased taxes and barriers to entry. Dubai has been attempting to position itself for a comeback, though investors and lenders are still gripped with fear following the previous crash. Europe is expected to continue its slide for the foreseeable future and Asian investors who may have been playing with the idea of U.S. investment are increasingly turned off due to uncertainty.
Experts and analysts have already predicted great things for commercial real estate investment in Edmonton in 2013, with large pools of investment funds expected to actually really pick up half way through 2013, topping what has been seen in the last couple of years.
Bring on the Fiscal Cliff
None of the above even begins to factor in the additional lift to be provided to Alberta real estate and commercial real estate returns from the fallout over the U.S. fiscal cliff.
The U.S. fiscal cliff debacle is not looking pretty and any outcome it is not shaping up to be a good thing for those invested in the United States. Surging tax rates, unattractive conditions to hire or work or do business and an anti-small business and anti-entrepreneurial attitude are all going to have an effect.
This will drive more international dollars here, more U.S. dollars, retailers, head offices, startups and entrepreneurs, plus a surge in residents on top of the already great growth expected.
A new survey by BMO Harris Bank shows a quarter of Albertans currently holding assets abroad. Much of this investment capital is certainly currently in the U.S. and will be likely to be brought home to protect wealth and take advantage of the incredible returns being seen locally.