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Foreign Investment in Canada Up 33% in 2016
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(Posted on Feb 20, 2017 at 02:00PM by Michelle Bogle)
Transactions of Canadian office, hotel and retail properties reached record-breaking heights last year, stimulated by a strong inflow of foreign investment into the country’s commercial real estate sector.Â
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Commercial property deals involving foreign investors (worth $10 million and up) increased by 33% year-over-year in 2016, which equates to $34.7 billion. This figure exceeded the previous record of $32.1 billion, which was set in 2007. Within British Columbia, Vancouver accounted for $8.1 billion in 2016 – an increase from the previous year’s $5.7 billion.
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Industry watchers suggest that foreign investors are choosing Canada as a safe haven to park their money amid fiscal and political uncertainty around the world. A recent article by the CBC also indicates that foreign investors are also choosing Canada for our educational and business opportunities.
Earlier last summer, the B.C. government introduced legislation that adds a 15% property transfer tax for foreign residential real estate buyers. This new tax took effect on August 2, 2016, and only applies to home purchases in Metro Vancouver, as well as multi-family properties. Since then, B.C.’s housing market has experienced some cooling, while interest in the province’s commercial real estate sector has continued to simmer.
Earlier last summer, the B.C. government introduced legislation that adds a 15% property transfer tax for foreign residential real estate buyers. This new tax took effect on August 2, 2016, and only applies to home purchases in Metro Vancouver, as well as multi-family properties. Since then, B.C.’s housing market has experienced some cooling, while interest in the province’s commercial real estate sector has continued to simmer.
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Foreign investment remains a hot topic across Canada and especially in Vancouver. For more information and insight, please contact our office to speak with one of our knowledgeable commercial real estate advisors.
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