Investors looking to make their best bets on Canadian real estate in 2022 should look to “beds and discounts”, according to a new report from PricewaterhouseCoopers (PWC).
PWC’s Emerging Trends in Real Estate 2022 report, built on the basis of responses from investors, fund managers, developers, consultants and other real estate professionals, identified ways in which investors optimize portfolios investment in the coming year.
“More than ever, it will be important for companies to embark on a transformation agenda focused on strategically managing costs and accelerating innovation and investment in the most promising business opportunities,” said the report.
So what exactly are these promising opportunities? According to those interviewed for the report, “beds, sheds and renovations” are today’s best bets.
Two different categories of rental housing feature prominently in the investment list: moderate income / work apartments and single-family rental housing.
âThe demand for more space is a factor that increases the prospects for single-family rental housing, which can provide a more affordable alternative to purchasing a low-rise home,â the report reads.
While the single-family home market is expected to slow from the frenzy seen during the pandemic, it will always remain strong.
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The creative reuse of aging or underperforming properties that an investor may already own is another area of ââupcoming interest for investors.
“Owners of older, poorly performing commercial buildings, for example, might take a fresh look at how they can redevelop them to incorporate more promising uses,” the report said. “Real estate players who are struggling to find new industrial opportunities to develop might consider reallocating properties they already own for purposes such as warehousing, order fulfillment and last mile delivery that are in the pipeline. strong demand.”
Medical practices, an attractive asset for many investors due to its stability, will retain their interest, especially as the Canadian government continues to work with pharmaceutical companies to develop the industry in Canada to ensure supply. into products like vaccines.