Real estate advising company, Bentall Kennedy LP, recently announced they are increasing their investments from 10 to 15 percent.
Doug Poutasse, the head of strategy at Bentall Kennedy LP, stated that they intend to increase their investments from 10% to 15%. As of September 2018, the company managed approximately $22 million CAD worth of assets.
There are a number of reasons as to why Bentall Kennedy LP is increasing their investments. It appears that the primary reason is that the company sees opportunity in the city. In an interview, Poutasse stated that the “Canadian economy peaked but it is not necessarily coming off that peak.”
Experts believe that this peak is due to the enormous increase in Canada’s immigration. Out of the 400,000 immigrants that came to Canada, approximately 100,000 relocated to Toronto. This influx of people has caused the rent on purpose-built units to shoot up by 17%. If Bentall Kennedy LP is increasing their investments by 5%, they must assume that this number will continue to rise.
The influx of immigrants is not the only thing increasing the rent of these units. The increase has also been attributed to construction issues. Some of these issues include rising labor/material costs, zoning delays and more. It is also worth mentioning that the price of land has increased in recent years.
What do these price increases mean for the people who want to invest in Toronto real estate? It is a sign that now is a great time to follow suit. If major real estate companies are making investments, one can assume that the prices will continue to rise.