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On one hand, the pandemic has created both health and economic challenges for the nation, but on the other hand, it has opened up new living options for many thousand Canadians.
During the first three quarters of 2020, prices of recreational properties in Canada soared thanks to Canadians’ working remotely. The prices of multifamily, single-family homes, condominiums and waterfront properties increased, and this trend is expected to continue strong in 2021.
The retirees of the Baby Boom generation are seeking all types of recreational property including chalets, cabins, cottages and farmhouses. In addition to the retirees, the new wave of pandemic-era buyers is seeking multifamily and single family homes close to retail. This is why multifamily mixed-use projects will continue to be in demand in 2021.
According to Royal LePage recreational property experts, “fifty-four per cent of regions surveyed reported a significant increase in buyers who sought to purchase a primary residence in a recreational market, enabled by their ability to work remotely.” This increase reported in buyers of such properties is largely due to their ability to work remotely from properties that bring more than living, but recreational options.
The pandemic has also spurred demand of retirees who have advanced their plans to enhance their quality of life by relocating to cottage country.
Atlantic Canada includes the provinces of Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland and Labrador. This area is known for its fresh seafood, like lobster.
In Atlantic Canada, recreational property market increased 8.6 per cent year-over-year to an average sales price of $187,564. For those who want waterfront, the price is higher. The prices are rising due to local buyers desire to move from the city and closer to nature and water. The demand for property here has put inventory levels at the lowest seen in 15 years, according to real estate professionals Royal LePage.
This is all good news for investors that are looking to attract buyers to their properties. There has to be a draw. Some type of convenience after the workday is done. People want to be either closer to recreation or closer to retail.
Popular lake regions in driving distance to Edmonton have seen an increase in their waterfront property prices in Alberta. Additionally, some Albertans who are comfortable with the drive are taking an interest in Saskatchewan, which his part of the Prairies province. Saskatchewan lakeside communities are considered affordable at $500,000 and their drawing interest from nearby provinces.
In 2021, it is forecasted that recreational property in Alberta will increase by 3 per cent, the Prairies by 4 per cent, in Quebec by 5.5 per cent, in Atlantic Canada by 7 per cent, in British Columbia by 8 per cent, and in Ontario a whopping 10 per cent. All of these provinces are experiencing demand in housing and need more investors to supply it.
Overall, people are looking for change. They want a change of scenery. They want to relax in a safe environment and high home sales are an indication of how influential working remotely has been on many buyers across Canada.
Whether you are constructing or renovating to provide mixed-use properties or multifamily, if there is to a natural draw to your project, you will have buyers lined up ready to purchase. It’s a great time to invest in Canadian multifamily properties.