There is no question that Toronto is poised to become a prominent global tech hotspot.
Toronto is ranked number two and number four in the world for tech. More tech jobs were created in Toronto than Silicon Valley and New York combined. Companies like Intel, Microsoft, Uber and Shopify are all locating offices in Toronto and the GTA. This means more well paid professionals are going to be looking for housing options.
The impact on real estate? Condo prices are especially likely to increase, and we can likely expect the condo construction boom to continue. For example, some condos downtown on King St. are selling for upwards of $1,600 per square foot.
There is already a shortage of housing in Toronto and the new job creation projections will only add to this market dynamic. In fact, Toronto is home to a third of all commercial real estate transactions in Canada.
Investing in pre-construction condos may be a good option for certain investors. The market projections are certainly looking promising for future demand as tech job creation is expected to continue in Toronto and the broader GTA.
Could we see a return of 2016 real estate market dynamics? Probably not right now. But the long-term demand for housing in Toronto and the GTA will definitely be sustained from this trend.