Foreign Investors in the Montreal Real Estate Market: What You Need To Know
There has been a lot of talk about the presence of foreign investors in the Canadian housing market in recent years, but how do foreign investors actually impact the real estate market in Montreal? Earlier in the month, the Canadian Mortgage and Housing Corporation (CMHC) released a new report on the impact of foreign investors on the real estate market of the Montreal metropolitan area.
Here is some of the most important information uncovered by this report that anyone involved in the Montreal real estate market should know.
The CMHC report found that relative to the rest of the country, the presence of foreign investors in the Montreal real estate market is low. These findings, which have been supported by many industry leaders, was compiled using property assessment and land registry data, as well as previous CMHC reports on foreign investments.
Breakdown Of Foreign Investments
According to the CMHC, the majority of foreign investors are buying condominiums. Condos, especially those located in downtown Montreal, account for 73% of real estate purchases made by people whose primary residence is outside of Canada. However, only 1% of condos in the Montreal metropolitan area are owned by international buyers. Foreign investors may pay up to 10% more on average for a condo in the Montreal area. Foreign investors may be slightly affecting the prices of condos and luxury homes, but the prices of apartment buildings and multi-family properties in Montreal has remained largely unaffected by foreign investors.
What Does This Mean for Local Residents?
The relative lack of foreign investors means that their presence in the real estate market doesn’t present a risk to local investors. This is good news for local residents interested in buying or selling property—it’s still possible to find affordable multi-family buildings in Montreal without stiff competition from international buyers. Because foreign investors are more concerned with the luxury home and condo market, there has never been a better time for local residents to invest in multi-family properties and apartment buildings, which remain relatively untouched by foreign competitors. This isn’t the case in other Canadian cities such as Toronto and Vancouver, where the rate of foreign investors has been steadily rising in all property markets over the past few years.
Now is a good time to enter the Montreal real estate market, especially in the multi-family property and apartment building sector. Contact us at Baron Realty for help with buying or selling a Montreal income property.