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Semi-emerged property market in Canada ripe for growth

The potential for property investors has been overlooked according to Liam Bailey of David Stanley Redfern.

'I would call Canada, the only established market in the world, where the property market is only semi-emerged; meaning there is room for emerging market level growth on carefully chosen Canadian property,' he said.

He cites the Rouge River developments as an excellent example where one acre land plots are available for £28,000, in an area where £50-£100,000 is more typical for land plots of such a size.

A three bedroom chalet on the same development is going for £150,000 with others a short way away are selling similar properties for £500,000.

'Even on the developments with much higher prices, properties are being snapped up because of the excellent location. Almost smack bang centre between Montreal and Mt Tremblant, means you can attract rentals from tourists and visitors being drawn in by both places,' he added.

The outdoor life is particularly attractive in Canada. Developers are emphasizing things like rivers and lakes, kayaking, bicycle trails and ski-ing in the winter.

The economy in Canada is benefiting from growing tourist numbers, according to figures from Scotia Economics. International tourist arrivals in the country have risen by almost half in the last eight years.

'In Canada, tourism spending accounts for 4.6 per cent of gross domestic product and the sector is also responsible for more than 650,000 jobs,' said Adrienne Warren, senior economist at Scotiabank.

Even relatively remote areas such as Saskatoon, known as the Paris of the Prairies, are reporting increases in property prices but it is an area largely being ignored by developers.

According to the Canadian Mortgage and Housing Corp. there is huge demand for high end rental property and this trend makes sense economically for developers. The capital city, Regina, is considered one of the world's biggest agricultural biotechnology centres and it has the University of Saskatchewan and the Innovation Place Research Park and a considerable percentage of high-paying jobs.

'There is a steady influx of students and high income workers to let property to as well as a number of international companies. The economic stability of the region is relatively well assured,' said Paul Caton, an analyst with the firm.

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