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Can Foreign Investors Drive Real Estate Price High as Compared to Local Investors?

Can Foreign Investors Drive Real Estate Price High as Compared to Local Investors?
Can Foreign Investors Drive Real Estate Price High as Compared to Local Investors?

Real estate is one sector in which we all deal in but not all of us have expertise in it. In other words, if you ask majority of the people you interact with in your social circle will have little or no knowledge about the real estate and how to buy, sell or rent a place with full authority and information about everything related to it. That is why virtually all of us rely on the services of a professional agent or real estate broker to offer us what we need in this concern.

The Canadian real estate market is not a unique one when it comes to the buying of selling of houses, plots, condos, etc. Just like any other country, the influence of the foreign investors and the role played by the local investors has a crucial effect on the prices of the real estate here. We all know that foreign investment is vital for the growth of any country and any sector regardless of the size of the country. Canada is amongst the biggest economies in the world but not just the local investors can turn around things when it comes to real estate prices and the ROI on them.

Only Foreign Investors Drive the Price of Real Estate?

Don’t get an idea that only the foreign investors drive the price of real estate, but they are a factor, nonetheless. The combination of different factor, scenarios and the active role played by both the local and international investors drive the price of real estate. Canadian market is unique in a sense that, although, the land area is amongst the top 3 in the world with some disputes over the exact area, there is just about 10%-15% area which is habitable as the rest is forested or remain under thick ice or snow cover all year round.

The reason mentioned above give little choice to investors in terms of regions where they can invest as there are just a handful of big cities in Canada, but options are there when it comes to types of real estate here. For example, if an investor is looking for luxury condos Toronto for sale or rent, he can easily do so as good options in this concern are available. But what about the luxury real estate which most investors look forward to, especially the foreign investors, as this can offer them the ROI they are looking for. Let me shed some light on this aspect.

Luxurious Real Estate and the Role of Investors:

Have you ever thought about the price of a real estate project where the prices increased very quickly? A sudden surge in price of real estate can be because of a huge investment from a foreign investor or group of investors. Such rapid increase in price of an average place can make it valuable and the real estate in the luxurious category. There is a flip side to this aspect which I would like to discuss here for your understanding.

Foreign investors do invest in a luxurious place as they deem it a sure-shot winning strategy to earn good ROI in less time. Imagine a piece of real estate like city place condos which fetches premium price. The price tag is what determines how much luxurious a property can become and the potential it has to go on and become amongst the most sought-after properties in a city like Toronto.

Investors looking for long-term investment they try to invest in a large complex or new project just taking off and their involvement can boost its rankings. A layman looking for an investment in this sector would see this as a golden opportunity to make quick money. That’s one reason why many people try to get their hand on a condo project that is likely to get the attention from general public and will garner good price tag too in the not so distant future.

1 comment:

  1. Yup i think it is in some places where price for foreigners is high as compared to local people. Nowadays i am also looking to buy a property in Lahore but lit confuse where to buy. property in Lahore - buy house in Lahore