Re-investing capital in the real estate market is planned by most, survey reveals
Canadian real estate investors are in it for the long term and are optimistic that the market is thriving and resilient.
A recent survey by the Valour Group, District REIT, and Pro Funds Mortgages, found that interest and sentiment in real estate investing is strong with 87% of respondents feeling more comfortable investing in real estate compared to publicly traded stocks.
Most of those who took part in the poll own properties beyond their primary residence with purpose-built rentals the most sought after investment (73% expressed interest), followed by single-family homes (50%) and condominiums (43%). Less than one fifth said they were most interested in commercial real estate options including offices, industrial, agriculture, and retail.
The largest share of respondents have $51K-150K invested in real estate (36%) while 27% have less and 10% have more than half a million dollars invested.
More than six in ten respondents said they have increased interest in the Canadian real estate market with 15% considering the U.S. market, and 23% revealing decreased interest in real estate investment.
Confidence in the market in 2024 is high with 82% showing an optimistic or selective stance with just 18% taking a more passive position with their investments on hold.
The report shows that those whose current real estate investment will mature in 2024 are keen to re-invest in the market (69% said this) compared to 25% who will wait before reinvesting and 6% who plan not to reinvest.
Passive options are in demand with 80% of respondents favouring investments such as private mortgage lending (34%), or real estate-focused equity or acquisition funds (47%), while just 19% prefer active property ownership.
