The Urban Land Institute (ULI) and PwC have released their joint 2016 Emerging Trends in Real Estate® report. ULI is a non profit real estate research organization who partnered with risk management and advisory company, PwC in the development of this report. We selected five of their trends that we think you should watch for this year:
- Foreign Investors – "Global investors continue to see Canada as a safe haven for their capital." ---source REALTORS® should expect to be prepared to work with foreign investors. The lower Canadian dollar adds incentive for foreign investment in the prairies. Foreign currencies are stretching much farther into our market. Investors are particularly interested in farm and investment land to reduce their risk associated with international investment and secure a high rate of return.
- Rise of the Renters – Attitudes regarding renting are shifting. Renting is now viewed by many as an alternative to buying rather than a step towards home ownership. Large down payments continue to be a deterrent to first time home buyers. Savvy buyers will want to consider property with an additional suite that can be rented out and take advantage of an additional revenue stream.
- Office leasing – Business needs for office space is changing. Commercial tenants are: reducing their space per employee; sharing space with other businesses; and declining traditional property management services, such as: cleaning and fax lines, etc. Sellers and owners should be prepared to respond with flexible leasing terms and shorter leasing periods.
- Suburban Resilience – Suburbia still draws families. Despite rumours suggesting that urbanization will slow suburban growth, real estate experts in Canada still believe that suburban living will remain an attractive option for families. A lack of amenities such as schools and grocery stores in urban areas make downtown living a less desirable option for many. Full service suburbs with schools and box stores will continue to be popular for buyers.
- Technology – Buyers now have the most access to data than they ever have before. Smart buyers are leveraging this data to make informed real estate investments. In order to stay competitive, REALTORS® should be ready to provide statistical information throughout the buying process. These fiscally minded buyers expect REALTORS® to know and provide value added information such as: Home Price Index, median sale price, and neighbourhood inventory.