Foreign buyers account for a small percentage of Canadian real estate purchases, says report

While the reputations of international purchasers may precede them, it appears that the long-held belief that this buyer type “dominates” the Canadian market is incorrect.

Baker Insights Group (B.I.G.) of Baker Real Estate Incorporated, a research and analysis firm that provides developers with specialized market insights as well as data for sales optimization, claims this.

International Buyers Analysis, B.I.G.’s newest Market Report, discusses how foreign buyers are commonly perceived as “‘crowding out’ local buyers,” while “nothing could be farther from the truth.”

The analysis, written by Ben Myers, owner of Bullpen Research & Consulting, shows that only 3% of Baker’s sales — which totalled $39,000 over the last ten years — went to purchasers from outside Canada.

“To date, minimal research has been published regarding new condominium buyers and where they live,” says Barbara Lawlor, CEO at Baker Real Estate Incorporated.

“The Toronto projects had a non-resident buyer share of 4%, while places that had a higher percentage include Oakville, Montreal, and Quebec City,” Myers said of local purchases.

Baker sells a major percentage of new housing in the Greater Toronto Area, particularly in the investor-heavy sector of Toronto’s downtown core, as a leader in the new condo sphere.

“Over the past ten years, there has been a lot of misinformation surrounding who is purchasing new condominium units in Canada,” explains Lawlor. “By working closely with developers, we understand the critical role investors play in bringing new builds to life and are excited to share insights on where investment in the GTA’s new condo market actually stems from.”

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