Millionaires Descend on Canada as Downtown Real Estate Booms
Millionaires from around the world are investing in Canadian Commercial real estate and moving to Canada in large numbers.
According to an article published by CNBC, millionaires are on the move. In 2016, 82,000 migrated from their homelands up from 64,000 in 2015.
It is interesting to note where they are going. The most popular countries for millionaires to move to are as follows:
1. Australia: 11,000
2. United States: 10,000
3. Canada: 8000
4. New Zealand: 4000
The country that saw the most Millionaires leave was France with 12,000.
The Globe and Mail reports that Europe’s richest seek a haven in Canadian office towers and they have purchased landmark buildings in Montreal, Toronto and Vancouver due to concerns about the EU’s uncertain future. Most buyers out of Europe are first time investors in Canada like Amancio Ortega, founder of the Zara retail chain and Germany’s Klaus-Michael Kuehne whose $10 billion dollar fortune comes from ownership of shipping giant Kuehne and Nagel.
There are very few places in the world to invest these days and Canada is top of the list. According to CBRE a number of factors are drawing these investors to Canada including the emergence of Toronto and Vancouver as perceived global destinations with real estate valuations well below those in larger financial centres such as London and New York. CBRE expects demand to continue in 2017.
For Europeans, concerns over the future of the Euro and for that matter the EU in the wake of the Brexit vote in Britain and ongoing financial problems in countries such as Greece have resulted in considerable amounts of capital leaving Italy and Spain for markets which are seen as more stable. With uncertainty increasing throughout the world people are looking to the safety and security of Canada to both live and invest.
It is not just Europeans either. Florida based auto parts billionaire Shahid Khan purchased the Four Seasons Hotel in Toronto for $225 Million in September 2016. His comments when he announced the purchase, “Without Toronto, you cannot tell the story of the greatest cities in the world.”
Some of the best business minds in the world see Canada and particularly Toronto and Vancouver amongst the best real estate markets in the world and it is about time Canadians did as well.