May 17, 2017 - Real estate is a major economic force. Its total value far exceeds the annual revenues of a country. In 2016, the aggregate value of Québec real estate (including residential, commercial, industrial buildings and land) was $ 1.07 trillion.
This amount is equivalent to 2.7 times the gross domestic product (GDP) of the province, in which the entire real estate inventory grew by 91% in value, since 2006.at which time its value was $ 560 billion in 2016 dollars. This considerable gain over 10 years is due in part to the number of appraisal units that rose by 13% on account of new construction.
However, it is the increase in the average value of a property that is the main factor behind this increase. Depending on the type of property, this value increased by 27% to 149%. Also, in Quebec, the residential sector alone represents more than 2.4 million properties. These were worth more than $ 735 billion in 2016.
Although the number of co-ownerships is still considerably lower than one dwelling properties, its growth has been dazzling. The last decade was undoubtedly the age of condos, as they have increased by 77% compared to 2006. In comparison, the number of one dwelling properties (other than condos) increased by only 15%, during the same period.
The number of new unsold condominiums has been increasing for some time, significantly slowing the pace of housing starts in this residential market segment. Even if the pace has diminished, the irresistible thrust of the condos forges ahead at a much higher rate than the other one dwelling residences .
Due to scarce vacant land in urban areas, and a growing population, co-ownership will take a prominent place in the coming years. In some Quebec regions it has become the number one homebuyers ’choice.
Montreal, May 17, 2017
Source: Les Affaires
