The COVID-19 pandemic took a toll on the economy as many businesses were forced to close for an extended period of time. However, as the cities around the globe slowly emerge from the pandemic, Toronto has become one of the topmost promising investment locations in North America. Recently, the fDi Intelligence,* a publication from the Financial Times, released its sixth annual Americas Cities of the Future 2021/2022 Winners, with Toronto coming in second place. This report shows that major cities in North America fared better than other regions during the pandemic and are well-underway to a faster economic recovery.
The City of Toronto moved into second place in the Top 10 Overall Americas Cities of the Future, just behind New York. This ranking looks at the city’s economic potential, measured through indicators such as GDP, growth forecasts, inflation and unemployment. This means that Toronto is seen as one of the leaders in international investment, commerce, trade, development, and innovation. The only other Canadian city that made it in the Top 10 overall ranking was Montreal coming in fourth place after San Francisco. This data shows that the city of Toronto outperformed many cities in both North and South America, proving that it is on its way to making a full economic recovery.
Toronto has also made it into the Top 10 for Human Capital and Lifestyle that is measured through indicators such as the number of universities, skillset of graduates, ease of finding skilled employees, the Social Progress Index and the Human Capital Index. It is also ranked sixth in Connectivity, measured through indicators such as information and communications technology and transport infrastructure.
Additionally, fDi Intelligence said the Software and IT services sector is the top recipient of foreign investment in Toronto, which received only two fewer projects in 2020 than in 2019. Among other notable projects, Google announced in February 2020 that it will open a new 37,160-square metre office tower in the city.
The City of Toronto says international rankings of this kind confirm that the city is increasingly recognized for its smart and mutually reinforcing investments in business development, culture, people and neighbourhoods. Together, these resources and attributes make Toronto attractive to international investors, companies, visitors, and talent.
After the release of this report, Mayor John Tory said, “I am proud that Toronto has ranked high in the Americas Cities of the Future list and that we continue to demonstrate that we are a vibrant, successful and liveable city in North America. We have a longstanding reputation as being a leader in a variety of sectors, including technology and innovation, finance and healthcare, and we continue to invest in the infrastructure that all successful cities need to update and expand, including housing and transit — all of which have created an environment that people and businesses want to come and experience. As we begin the reopening and rebuilding of our post-pandemic economy, I will focus on how we can continue to grow and succeed and attract people from all over the world to come to our city to work, play and live.”
Real estate investors can be rest assured that the City of Toronto and the rest of the GTHA are set for growth. With travel restrictions eased, many new policies in place, and foreign and government investments, the city is focusing on rebuilding its economy. Toronto and the rest of the province are focusing on growth by supporting new businesses, creating new jobs, expanding the transit system, and building condominiums.
All of this new infrastructure is completed with one goal in mind, to increase the population and provide a vibrant and livable community for every resident. This means that the growth of pre-construction condos is not going to slow down anytime soon. People want to live in these urban areas across the province where they can reach their place of employment or jump on public transit within minutes. In order to house the incoming population, condominiums are needed.
As an investor, you will have peace of mind knowing that tenants will occupy your investment property until you are ready to sell. When that time comes, you will see a major increase in your property’s value, providing you with a high return on your investment. This economic recovery is a great sign of what we can expect in the future because now investors know that if something triggers an economic downturn, such as a health crisis, the city can take the proper steps to bounce back and create a flourishing economy.
*Source: fDi Intelligence