Canadian real estate market is not an emerging market. In fact, it is a well established traditional sector. From the perspective of a property investor, the total property sector in Canada is fully dependent on the development or population growth in a particular area. It also depends on the strength of the investment. Another major factor that attracted the foreign investors is its hassle free legal system.

With the reinforcement of the Canadian economy, more and more people are migrating to the country. This is leading to a growth in the demand for properties. The real estate experts believe that this growing demand in the Canadian property market will also radically boost the property values in years to come.

The following are some of the factors that you need to understand before investing in the Canadian real estate markets:

The rising of average incomes:
This is one of the factors that you need to take into account while searching for strong real estate markets. It is a good idea to opt for places where the average gross income is increasing faster. This means that the property prices will also follow the same pattern.

You can invest in a real estate market even if the average income of that place is lower than the provincial average, provided the rate of the average income is increasing faster than the provincial average.

The flow of booming markets:
You can conveniently invest in a property market, if its neighborhoods had recently experienced a strong growth in their property values.
Though at a slower rate, these surrounding areas will also heat up eventually. This is a phenomenon that has been noticed repeatedly in surrounding areas of a booming market as well as in the neighborhoods of redeveloping and improving communities. If you follow the pattern minutely you can easily identify such real estate markets, which are about to experience such booms.

Also reading local newspapers and visiting the particular town’s or provincial website can also help you to get a clear idea about its real estate market.

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Most brokers will tell you that their service is free; their fee is paid by the landlord and it doesn’t cost you, the tenant, anything. Generally, we agree with this statement. To understand why a broker may not always be free, we must look at each of the four most common type of leasing scenarios:

You hire a tenant rep broker and lease space in a listed property.
You don’t hire a tenant rep broker and lease space at a listed property.
You hire a tenant rep broker and lease space directly from an owner.
You don’t hire a tenant rep broker and lease space directly from an owner.

Scenarios 1 and 2 are by far the most common, as most commercial space is listed by the owner with a real estate agent. In Scenario 1, your tenant rep broker is indeed free. This is because when you sign a lease at a listed property, the listing agent is required to split the commission due on the lease with your tenant rep broker. If you did not have a tenant rep broker (Scenario 2), the listing agent would have kept the entire commission for himself; hence the split results in your broker being free. There is a bit of gray area here, which happens when you are leasing space in a soft market. Since tenants are at a premium, the market dictates that a full commission is paid to your tenant rep broker. This adds 2-2.5% percent to the cost of the transaction to the owner, which the owner will try and recover in other areas of the lease. It is unlikely that you will pay a higher rent, as your alternatives in the marketplace prevent that. You may end up with a lesser tenant improvements, but your tenant rep is there to make sure you don’t.

Scenarios 3 and 4 offer the most debate. Under Scenario 3, while you don’t pay the tenant rep broker directly, the owner does. This adds cost to the lease and the owner will try hard to recover that cost, either with a slightly higher rent or lower lease incentives (i.e., one less month of free rent provided). However, we would offer that a good tenant rep broker will negotiate for a better lease than a typical tenant can achieve without representation. Clearly there are savings under Scenario 4, but it takes a lot of work by the tenant to be able to receive the full benefit of those savings.