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Don’t miss out on the next Canadian real estate trend sinking money into major urban areas. The outlying towns and communities surrounding large metropolitan centers stand poised for rapid growth over the next two to five years, few more so than Kanata, Canada’s Silicon Valley.
Home to a thriving tech center for the last three decades, Kanata’s influence in the Capital Region continues to expand as the years’ pass. Thanks to limited space and growing populations across Ottawa, thousands of people flock to neighbouring Kanata to purchase a home or rent an apartment close to the city center.
The onset of COVID-19 only strengthened buyers’ interest in the Kanata real estate. Right now, the region boasts consistent growth, rising home prices and plenty of opportunity for the right real estate investor.
The Kanata Real Estate stats
The housing market is booming across Canada, but even the hottest markets trail behind Kanata. By the end of November 2020, the region saw 167 home sales (representing a mixture of single-family detached homes and condominiums). Those numbers represented a 56 percent improvement over sales in 2019.
Homebuyers shelled out big money for those homes, too. Single-family homes averaged $623,000 at the time of sale, an increase of more than 22 percent over last year. Experts expect those trends to continue through 2021, thanks to the rapidly diminishing number of available properties on the Kanata housing market.
Even as developers and construction pros work feverishly to catch up with the demand for new houses, it will still take some time to even things out. During that interval, housing firm Re/Max predicts Kanata and the surrounding area will be one of the most sought-after neighbourhoods in the entirety of Ottawa. Buying into the real estate market now is a smart way to secure growth for the next two-plus years.
Kanata Real Estate’s Greenbelt factor
Something of a mixed-blessing developed in the Capital Region (and Ottawa, in particular) over the last decade. On the one hand, the entire area is enjoying a healthy growth cycle. The city grew 2.3 percent in 2019, making it the second fastest-growing city in Canada. The surrounding Gatineau region swelled alongside Ottawa at 1.5 percent. That’s great news because it indicates a thriving capital—until you realize space in Ottawa is finite, and those boundaries get closer every year.
In the 1950s, the federal government of Canada created the Greenbelt. This massive 200-plus-kilometre swath of land protects forests, wetlands, farms and a variety of other nature-focused reserves. In other words, no one gets to build in the Greenbelt. While undoubtedly a worthwhile gesture, a problem arises when one considers that the Greenbelt surrounds Ottawa on three sides. As you can imagine, that substantially limits the available space for expansion in and around the city.
Meanwhile, Kanata lies directly west of the Greenbelt. From a geographic standpoint, Kanata retains considerable room to sprawl and much more opportunity for real estate investors to stake a claim to the area.
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Residential and commercial opportunity in Kanata Real Estate
In a nation with strict rules about new buildings, Kanata is doing what it can to buck the trend. To keep up with the demand for houses, Kanata consistently okays residential and commercial structures for building. That allows investors to jump into the real estate market at several points along the development timeline.
For example, in October, the Kanata city planning committee approved plans to build two neighbouring buildings with a combined 139 apartment units and commercial space. This ambitious construction project represents the kind of real estate growth present in the Kanata region.
With growth expected to explode through 2030, there is plenty of time for seasoned and freshman real estate investors to sink their teeth into the Kanata area.
The Syntronic turnaround
In June, The Canadian research and development arm of Swedish tech firm Syntronic foresaw a dire future. After storming into the Kanata area and scooping up talent at an alarming rate, the COVID-19 outbreak threatened to derail the company’s growth plans. To stay afloat, Syntronic announced a plan to sublease some 20,000 square feet of its office space.
Then, something magical happened. As Syntronic SVP Darrell Wellington explains, “All the companies kind of realized, ‘You know, we actually have to keep developing new products and getting things to market. August was the best month we’ve ever had in the history of the company.”
What began as a year that threatened Syntronic’s future ends as a banner year. The company is back on track to continue rapid expansion throughout the Kanata region, cementing its reputation as a tech hub.
Syntronic is one example of the growing number of companies flocking to the Kanata area and bolstering its economy and real estate value. It’s further evidence that the region is in the midst of undeniable, and — for the moment — unquenchable demand.
Think about REITs
For those people just getting started in residential real estate, the entry point for Kanata might seem steep. Just because you don’t have several thousand dollars to invest in a property (yet) does not mean you have to forego your share of the profits reaped in Kanata. Consider a real estate investment trust (REIT).
If you’re unfamiliar with a REIT (pronounced, “reet”), they’re an investment vehicle where individuals purchase shares, and agents working for the REIT use that capital to invest in real estate. In August of last year, Montreal-based PROREIT dropped nearly $98 million to acquire two Kanata buildings. They based this move on “Kanata’s major economic growth” plus the long-term possibility of tech and government renters.
In November, Halifax-based Killiam Apartment REIT announced it generated $43.4 million in net operating income during the third quarter of 2020. That income was bolstered by gains in the Kanata area, among others.
Even if you’re not quite ready to take on sole proprietorship of your own property, you can still leverage your assets into a profit with the help of a REIT.
With the tech boom showing no signs of stopping, Kanata is a great choice for your portfolio.
Kanata Real Estate Professionals
We have searched high and low for real estate investing professionals in Kanata. Below, you can find professionals we have researched and can confirm they specialize in working with Real Estate Investors.
To ensure the maximum success in real estate investing in Kanata, or any city, you should always use professionals who understand and work with investors, your income depends on it.
This list may not fully list all the professionals in the area, but the ones we have personally investigated and that we would refer our clients to.
If you’re a real estate professional and would like us to consider adding you to the list, please contact us.