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March 15, 2021 - Blog Article
Multifamily Real Estate Strengthens CRE Investor Portfolios in Canada

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Multifamily Real Estate Strengthens CRE Investor Portfolios in Canada

The Canadian Commercial Real Estate (CRE) market seems stronger than ever, despite all the ongoing pandemic challenges.

New opportunities to strengthen investment portfolios continues to be available for Canadian CRE investors. Multifamily real estate properties are some of them.

Both Supply and Demand for High-Rise Multifamily Properties Remain High

Multifamily properties have always been considered a smart and profitable investment. These days, a growing number of Canadians are looking for well-located, high-rise multifamily properties to live in, especially those with energy-efficient programs.

That’s why many CRE investors are currently focusing on those properties to meet the high demand with an even higher supply.

Q Management LP (QMLP) is one of many CRE investors expanding their multifamily portfolios across Canada.

The real estate asset and property management firm is the owner and manager of 45 $1.3 billion-worth properties across Canada that house 5,234 suites. It has acquired many apartment buildings over the years with the purpose of tweaking them to meet contemporary standards.

QMLP focuses on adding value to high-rise multifamily properties that are close to 50 years old, through upgrades that improve comfort, liveability, safety, and energy-efficiency. Their focus on maximizing efficiency is a draw for those who want to live in multifamily property.

Since they are not developers, they target and establish relationships with family-run apartment portfolios. QMLP is just one example of CRE investors using investment funds to strengthen their Canadian CRE portfolio during the pandemic. 

Canada’s Housing Market Is Hotter Than Ever

When the pandemic hit, many experts predicted a decline in home prices across Canada, some saying they would decrease by up to 18%. But to everyone’s surprise, Canada’s housing market is hotter than ever.

Home prices across the country have surged, increasing by 13.5% in the past year and reaching a $676,600 benchmark in January.

Canada’s housing prices have already been high, but no one expected them to reach new record highs during the pandemic. This is primarily due to a higher demand for larger homes and a limited supply.

Interest rates have never been lower, which is excellent news for people looking to borrow funds for purchasing a home or investing in commercial real estate.

Furthermore, inflation in housing pricing is also very good news for multifamily real estate investors, as the demand for apartments will rise equally since not everyone can buy a larger home right now, even if they wanted it.

Summary

The Canadian CRE market offers more investment opportunities than ever. CRE investors can partner with property developers, owners, and operators to expand their portfolios across the country. Plus, if you are looking to maximize profits, multifamily real estate properties is worth considering.