3 Promising Real Estate Bets for a 2024 Investment Strategy

Canadian real estate is in a prolonged period of uncertainty. Over the last four years, the trickle-down effects of the COVID-19 pandemic, global supply-chain issues, US bank insolvencies, and international war have diminished Canadians’ capacity to make investments. Of course, we can’t forget the biggest drag on real estate — year-long interest rate hikes.

Despite all the swirling negativity, 73% of Canadians still recognize real estate as one of the best investments they can make. There are issues in the market, no doubt, and investors must choose more strategic deals to achieve greater dividends. By and large, real estate is still one of the safest investments to make — provided you know what assets have the greatest potential.

Promising real estate bets and strategies

In a country as vast and diverse as Canada, there is no one-size-fits-all approach to any investment strategy. Due to the size and complexity of the nation, there are regional differences that impact various Canadian real estate markets.

As an investor, it behooves you to educate yourself about these regional matters. Knowledge is your greatest asset as an investor, and knowledge will help you make strategic and promising real estate bets that pay off.

Growth in provincial economies incentivizes Canadians to relocate to those provinces for better-paying jobs. That’s why real estate investors should monitor population growth and migration trends. If people are moving to certain cities en masse, that means there’s rampant demand for housing. As an investor, this is your opportunity to cash in on those trends.

You can even segment further when you concentrate on the major cities. Major cities attract tens of thousands of people every year, and a significant percentage of those new arrivals prefer public or alternative transportation over owning a car.

Out of all promising real estate bets, none match the potential returns of investing near public transit. People want to live in places with direct access to transit, which drives up the value of buildings near transit lines.

Three promising real estate bets in 2024

Each market across Canada is unique, and there are regional factors that skew the benefits of real estate investments. Many economists are forecasting a brighter year for Canadian real estate, following a surprisingly strong surge in real estate deals at the close of 2023.

To that end, there are promising real estate bets that speculators recommend to established and upcoming investors. PwC Canada, in partnership with the Urban Land Institute, commissioned a new report on Emerging Trends in Canadian Real Estate. In that report, they identified three promising real estate bets that will carry forward a brighter investment future in 2024.

Multifamily residential housing is resistant to economic hardship

At WealthGenius, we champion multifamily residential housing as the most lucrative of all promising real estate bets. Multifamily residential investments are a winning investment strategy with near-limitless demand for rental space on those properties.

In their report, PwC Canada points to three key data points that will further embolden multifamily real estate investments.

1. The growth in the international student population migrating to Canada
2. A relative lack of supply in multifamily residential properties
3. The relative affordability of apartments and condos compared to single-family homes

The PwC Canada report even suggests that multifamily residential investments have proven to be recession-proof. They also point to the federal government’s recent announcement that GST taxes will be exempt from new rental housing construction starts as spurring even greater demand for new multifamily housing developments.

Multifamily residential housing will remain one of the most promising real estate bets on the market. Remember to do your research and find the markets with the highest potential for capital returns on your initial investment. That’s where you should concentrate your efforts as you build your real estate empire.

Industrial real estate investments have great long-term potential

The value of commercial office space across Canada has been placed under the microscope. Canada’s busiest cities have entire floors of commercial office buildings sitting vacant, since the pandemic, as more companies make remote or hybrid work permanent working models.

Commercial real estate investing may be uncertain, but PwC Canada sees nothing but long-term growth ahead for industrial real estate investments. Unlike commercial office space, industrial real estate has exceptionally low vacancy rates and just enough supply to keep pace with demand.

**Investor’s Note: effective real estate investments are about supply and demand economics.

Within the industrial space, there are three types of industries that PwC Canada cites as contributing to the low industrial office vacancy rate.

• Manufacturing sector
• Warehousing sector
• Data centres

Each one of these industries contributes to the supply chain of the Canadian economy. Industrial companies need proper space to conduct their business, which means owning pieces of industrial-ready property gives you leverage as a landlord to cash in on your investment. Industrial investments are promising real estate bets that will pay off in years to come.

Necessity-based mixed-use retail properties are rising trends

Finally, the third of all promising real estate bets recommended by PwC Canada is the necessity-based retail property. Essentially, this is another way of describing mixed-use properties that include neighbourhood retail businesses on the ground floors of multifamily residential buildings.

In major cities like Toronto, Montreal, Vancouver and more, mixed-use properties are in high demand. In Toronto, for example, work was recently completed on a multifamily property called The Well, which contains necessity-based retail space within the property complex. It provides residents with immediate access to necessities and even commercial office space in their own pocketed community.

These types of necessity-based mixed-use properties are in high demand, and PwC Canada cites scores of such projects in development in cities across the country. If you want relatively safe and promising real estate bets in 2024, make sure you incorporate necessity-based mixed-use properties into your investment strategy.

Learn more about promising real estate bets

Any real estate investor should do their research before making any investments. Make sure you understand the market trends, economic conditions, population migration patterns, and housing start construction as you map out your investment strategy.

However, there’s no need to do all of that work alone. You can learn all about promising real estate bets — and even some ideas you may not have ever considered by joining the ultimate real estate education platform in Canada.

You’ll learn trade secrets from the most successful investors in the country, and you can arrange to be mentored by these industry titans to help grow your own business. Plus, you can network with people at similar stages as your own and use lessons from their early stories to shape the direction of your investment strategy for 2024.

Don’t miss out on a chance to capitalize on promising real estate bets this year. Join the ultimate real estate education platform and live your dreams as a successful investor.