Canada to boost investment in new luxury condos amid slowing economy

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The country’s real estate market has been battered by a sluggish economy that has slowed construction of luxury condos and office buildings.

The government announced Tuesday that it will launch a new residential investment fund in Toronto that will aim to help investors find new deals in the booming market.

“The Toronto Real Estate Board will launch the new fund in the coming months, which will be an additional investment opportunity to help accelerate the recovery of Toronto’s residential market,” the Ministry of Economic Development and Trade said in a statement.

The fund, which is designed to provide a return on investment of up to 80 per cent over the first two years, will be launched by the Toronto Real Property Board and will be led by the real estate developer John Linder.

The Toronto Board of Trade is Canada’s biggest real estate agent, accounting for roughly 40 per cent of the country’s residential real estate stock.

It is expected to be the first fund created in Canada to provide investors with additional options to invest in condos, apartments and office space.

It will include “a diversified portfolio of investments in new and existing condominiums, apartment buildings, and office developments” in the city, the ministry said.

“Investors who are in a position to buy condominium units, and are willing to make a long-term commitment to live in the project, should consider the value and return of these investments,” it added.

The ministry is offering a one-time investment of $250,000 (US$265,000) for people who invest in condo units, with the option of buying a similar amount for an apartment.

The new fund is expected be launched later this year.

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