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Canada – The Land of Immigration!
Over 6 million new immigrants have arrived in Canada since 1990. And Currently, 1 out of every 5 people living in Canada is currently an immigrant.
Immigration in Canada is based on Family reunification, economic growth and humanitarian considerations.
In principle, Canada is aiming to bring in immigrants equal to 1% of its population. Therefore yearly targets have been between 300,000 and 350,000 in recent years. Some years this target has been achieved and in some years not.
An Aggressive Target For the Following Three Years
2020 was a year of unprecedented events that widely affected the world and the countries, and Canada is no exception.
Having no tourism income, very limited intern National student intake, slowing immigration and restricted travel options as well as the local measures due to Covid cause a natural economic crisis. Canada is going through tough times and now the plan to overcome the slowing economy is here: “getting more immigrants in!”
With the new plan, Now the government is planning to bring in 1,233,000 new immigrants over the course of THREE YEARS, as opposed to the recent plan for 1,050,000. This plan is also aiming to cover for the slowing down immigrant intake in 2020.
Effect on British Columbia Real Estate Market
Just like many other provinces, new immigrants are a big part of the growth of the Real Estate market in British Columbia.
Historically, 14% of the total immigrants landing in Canada come to British Columbia. Based on this, we can project that in the following three years, BC will welcome close to 60,000 new immigrants coming to BC, every year.
Although BC is the third biggest province to welcome immigrants, in Business immigration, it gets even close to Ontario, which shows that the immigrants choosing to start economic activity tend to choose BC more, among others.
2020 real estate sales had record figures in September and October. This happened in the not-so-strong immigration year. therefore with an increased level of immigrants coming in, we can expect the upward trend in the prices in the market,
Since there is a 20% additional tax for foreign nationals (who does not have PR or citizenship), and it takes some time to get their PR after they arrive, the immediate effect is the rental prices going up first. And then the prices of the houses, mostly in Condo and Townhouses can be expected to increase.
More Details to Follow
The details of the government plan will be more clear in the following months, therefore the market estimates will be highly affected.
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