Niagara is Growing Rapidly
Niagara Falls Ontario is known for being Canada’s largest and most popular tourist area due to the Niagara Falls and casinos. Like most places in the Greater Toronto and Hamilton Area, Niagara is growing rapidly. Toronto’s affordability problems have investors and homeowners looking elsewhere to smaller submarkets for investments.
Apartment Investor Demand in Niagara Submarkets is Building Up
Over the past several years, Hamilton’s real estate market outperformed much of the country. The attention from many real estate reports and the city’s economic growth attracted many outside investors driving up demand and real estate prices along with drastically lowering supply. Partially due to this and coupled with a robust economy with strong job creation and immigration, investors are now spilling into submarkets. The result is that commercial and residential multifamily apartment real estate prices in the regions such as Niagara Falls, St. Catharines and Welland are appreciating and therefore Canadian real estate investors are sensing opportunities. Niagara is now facing historically low vacancy rates and a rental shortage. There is simply too much demand and no supply in the Niagara region.
Key Reasons to Invest in Multi-Family Apartments in Niagara
- Niagara Falls will continue to grow over the next decade; The Niagara Falls Go Train will be complete in 2023 and will be located in the downtown core of Niagara Falls.
- Under Valued Market; Development and investments are just beginning.
- New Niagara Hospital; Mcleod and Biggar road will be the location of the New Niagara hospital which will become the center of many new communities built around it.
- Developers are beginning to develop – Many pieces of land are being rezoned for residential and mixed use to accommodate the demand. Residential communities will be developed in Niagara Falls along with a 450 acre development that will become a European style community with restaurants, hotels, retail and homes.
- Better ROI; Your money goes further in Niagara Falls when compared to other larger markets
- Competition; Substantially less competition than in the GTA
- Better Commercial Real Estate Opportunities; Cap rates offering more upside.
- Underperforming Assets; Under rented apartments with less investor competition.
- Rents have Increased; Rents have risen so drastically that it presents opportunity in commercial apartment real estate.
- Apartments Owners have owned for many years; Presents opportunities as rents have increased so drastically and owners have owned for so long that they often have very strong equity positions and therefore will often offer a vendor take back or seller financing.
- Competition; Less competition when compared to other investment markets.
- Top Rents; Rents are comparable to larger markets.