McGill Real Estate Agency considered a benchmark for the sales and marketing of real estate projects of new condos confirms that Montreal’s real estate market is still going strong.
Montreal, february 13th 2012 (CNW Telbec)
According to real estate broker, Patrice Groleau, owner of McGill Real Estate the real estate agency, international investment funds are jostling toward Montreal. However, he specifies that only major developers and the best real estate developers are selected by these funds.
These funds have very strict investment standards, even more strict then a few years ago. That is why the financial structures are ultra complex almost impossible for small up and coming real estate developers to abide by.
Even at McGill Real Estate, only about 10% of real estate projects are retained: the good developers as well as quality and viable projects.
Major organizations such as Devimco, DevMcGill, Pur Immobilia, just to name a few, are extremely well-structured and meticulous, therefore a sure bet for consumers looking to buy the perfect condo in Montreal.
Financial structures are so complex that condos will not inundate the real estate market. This being said, developers launch their projects only if their market analyses show an interesting velocity.
Montreal Real Estate
To those who are expecting an American-style collapse of the market, brace yourselves because you may wait for a long time since there are almost no foreign buyers/investors looking to buy a condo in Montreal. There are less then 1% foreign investors (looking to flip or rent their condo) in Montreal versus 40% of oversea buyers in Vancouver. Montreal’s real estate market is opting for a slowly but surely pace which will allow for a slow landing.
Why shouldn’t Montreal be a little more expensive simply because it is a lovely city where people want to live because of its natural rarity in that it is an island, and also for the basic supply and demand phenomenon, unlike American style speculative real estate market bubbles?
It is very difficult to see a decline in property value when the cost of building itself is not decreasing. Building costs are much higher in Montreal then in Miami.
Media is in charge of distinguishing the realities of each of the markets. Although the world economy is a shared reality, the realities in Canada, Quebec and especially, Montreal should be a priority.
Quebec statistics are biased. When comparing actual income to declared income shown by statistics, Montrealers do not seem to be in as tight of an economical situation as statistics may lead the public to believe.
The Canadian banking sector is one of the most rigorous in terms of criteria for a mortgage approval. The rules are even stricter today.
People have to continue buying within their means and consider themselves lucky, thus far, for having a house, an underground pool, 2 cars, a country house, going on trips and restaurants, etc. Today, the priority should be property. Budget cut can be done on other things but not by putting up for sale signs on condos in Montreal…especially if the other option is renting, which is right behind on an increasing curve!
McGill Real Estate Inc.
780 Wellington, junction of Griffintown and Old Montreal
For more info: Patrice Groleau, Owner 514-255-0550 firstname.lastname@example.org