Prices are falling slightly, making them even more attractive to investors and the overall economy is less jittery than in neighbouring USA. But buying land before planning permission is granted is where the biggest profits lie, according to one investor.
Irish man James Whelan is hoping to make up to 300% profit within three to five years after buying land classified for development in Nova Scotia, Canada.
It took him some time and a lot of research before rejecting more obvious markets and deciding on Canada where his investment is earmarked for a luxury resort.
'Having already purchased three investment properties in Bulgaria during the boom period I was eager to invest again. However the recent credit crunch has affected many overseas property markets and most of the emerging markets I looked into gave me either cause for concern or the profit potential was extremely limited,' he explained.
When he found an opportunity to buy into development land at Forest Lakes Country Club with Landcorp International he decided it was a shrewd move.
This kind of investment does not suit everyone as it relies on buying at a low price before planning permission is achieved. But it didn't bother him because the risk is shared with the developer.
'By investing before final planning permission has been granted, I have in effect secured the best possible price per acre. Once planning is authorised I am then in the enviable position of either exiting with my profits or swopping my investment into building plots and building property. To date, no other overseas investments that I have looked into come remotely close to the potential profits that I am likely to see here. It is an excellent alternative to falling property markets in Europe,' he said.
Forest Lakes Country Club will be a luxury lifestyle resort with apartments, townhouses and villas as well as an 18-hole golf course and a luxury boutique hotel. Just two hours from New York, one and a half hours from Boston and under six hours from London, it expects good year round rental yields.
'At a time when other overseas markets are struggling, Canada has remained strong. It is therefore no wonder that investors regard Canada as one market to keep an eye on,' said Tonny Neilsen, Managing Director of Landcorp International.