The commercial real estate developer market in Quebec is projected to expand in the next few years. According to market research, the market is expected to grow at a CAGR of 3.9% during the forecast period of 2020-2025. This growth is driven by factors such as rising demand for commercial spaces, population growth, and increasing investments in infrastructure. The market volume of the commercial real estate developer market is projected to be CAD 17.3 billion by 2025.
The characteristics of the market reflect its potential for growth and development. It is highly competitive, with established players dominating the market. At the same time, there is still room for new entrants to establish themselves and gain a foothold in the market. The market is diverse, with a range of properties available for development, including office buildings, retail spaces, and industrial properties.
Local companies, such as Devimco, Broccolini, and Carbonleo, have achieved considerable success in the commercial real estate developer market in Quebec. Devimco, for instance, has developed several high-profile projects, such as Quartier DIX30, a mixed-use development in Brossard, and Solar Uniquartier, a sustainable residential complex in the same city. Broccolini, on the other hand, has gained a reputation for building large-scale industrial spaces, including distribution centers and manufacturing facilities. Carbonleo has established itself as a leading developer of luxury properties, such as the Four Seasons Hotel and Private Residences in Montreal.
Foreign companies have also made significant inroads in the Quebec market. For example, Ivanhoé Cambridge, a subsidiary of Caisse de dépôt et placement du Québec, has invested heavily in the commercial real estate sector, with extensive holdings in the retail and office sectors. Other foreign companies, such as Oxford Properties Group and LaSalle Investment Management, have also established themselves as major players in the Quebec market.
Upcoming projects in the commercial real estate sector continue to offer opportunities for growth and development. One noteworthy development is Square Décarie, a mixed-use development in Montreal that will include retail, office, and residential spaces. The project is expected to generate employment and stimulate economic activity in the area. The project that is worth mentioning is the revitalization of Montreal’s Old Port, which aims to create a new sustainable mixed-use neighborhood with retail and entertainment spaces. Another major project is the development of the Light Rail Transit system, which will connect several neighborhoods and employment centers and create new opportunities for commercial and residential real estate developments.
For foreign investors looking to enter the Quebec market, it is important to conduct thorough due diligence and research to understand the local market dynamics. Partnering with established local firms can provide valuable insights and facilitate entry into the market. Additionally, investors should be aware of regulatory and legal requirements, as well as cultural and linguistic differences that may impact business operations. As such, it is recommended that foreign investors seek legal and financial advice from experienced professionals to ensure a successful entry into the market.
The government of Quebec provides various incentives to stimulate the growth of the commercial real estate developer market. One of the most notable incentives is the Investissement Québec (IQ), which offers financial assistance to foreign companies looking to invest in Quebec’s real estate industry. IQ provides support for all stages of a project, from planning to implementation, and offers a long-term partnership with investors.
In conclusion, the commercial real estate developer market in Quebec presents significant opportunities for growth, with established local and foreign companies operating in the market. Upcoming projects and developments offer further potential for growth and investment. However, foreign investors must conduct thorough research and seek experienced local partnerships to navigate the complexities of this dynamic and competitive market.