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Colliers International Report Reveals Foreign Real Estate Investors Profile

Posted by Staff Reporter on Mar 30, 2016 10:13 AM EDT
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A view of the Vancouver skyline as seen from Hadden Park on March 11, 2009 in Vancouver, Canada. Vancouver will be the site of the 2010 XXI Winter Olympics. (Photo : Getty Images/Doug Pensinger )

Foreign real estate investors, according to last week's federal budget earned half a million dollars. Colliers International recently conducted a study to measure the earnings of foreign real estate buyers. They utilized a private survey of offshore commercial investors that had put hard numbers on the table.

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Investors from China earned a 42 percent share of investments in the Canadian commercial market in 2015's second quarter, up from 5 percent in the same time frame a year earlier. However, U.S. buyers remained as a dominating force.

Foreign real estate investors, according to the Colliers All Signs Point North report gained $1.4 billion in real estate in the first half, and a $574 million in the second half, a 143 percent increase. The report revealed that foreign buyers consisted of 48 percent of U.S. investors , up from 27 percent in the time frame a year earlier. The other 10 percent came from Europe, down from a 15 percent share in 2014.

Colliers claimed that foreigners gained $588 million in the Vancouver commercial market in 2015's last six months, accounting for 42 percent of foreign earnings in real estate in Canada alone, according to a feature from Business Vancouver.

In a deal announced in February, Beijing-based Anbang Insurance Group Co. Ltd. splurged an estimated $1 billion for a 66 percent share in four Bentall office properties in downtown Vancouver.

According to an investment review by Avison Young, Anbang proved the exception to the profile of B.C. commercial real estate investors, which was generally made up of private investors, both foreign and domestic.

Foreign real estate investors accounted for 88 percent of overall commercial deals in B.C. valued over $5 million last year. Their spending was at $1.4 billion, accounting for 69 percent of the total dollar volume. The report also found that institutional investors and REITs remained greatly sidelined, according to a report from Straits Times.

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