Why Master Planned Communities Appreciate More Than Stand Alone Condos
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The Rise & Rise of Master-Planned Communities In Canada
If you have ever tried to research the real estate market looking for a good investment opportunity, you would have inevitably come across a staple called “master-planned communities”. Master-planned communities are not new. These developments have been around for years now. But, with people actively searching for holistic living spaces that provide them everything from an ideal home to scenic views to retail outlets and more, master-planned communities have seen an astronomical jump in popularity.
Whether you are a seasoned real estate investor or a first-time home buyer in the pre-construction condo market, here is why master-planned communities should be your choice over stand-alone condos.
What are Master-Planned Communities?
Master-Planned Communities (MPCs) fall in the broader category of “condos”. They are sprawling development projects that are made up of multiple towers, each with many condos. Of course, these are big-scale projects usually undertaken by well-known developers.
What Makes MPCs Better?
Better Lifestyle
Master-planned communities are predominantly residential that offer various amenities within premises and in the neighbourhood. They may include parks, schools, retail stores, and other commercial establishments, community centres, and more.
Buying a condo in a master-planned community ensures a better lifestyle. You are not just paying for the condo you live in, but you are also improving your quality of life. This is precisely the reason why these condos are also easier to rent. Your renter does not just see the condo, but also the amenities they have access to when they rent your condo.
High Return on Investment
Master Planned Communities have always bounced back from economic slumps all over the world. After the financial crisis of 2008, master planned communities were the first to turn around in the US. With an economic crisis on hand in 2020, master-planned communities are again fairing better.
In fact, a PwC report states that the demand for larger suites in integrated developments was on the rise. So, while the real estate investors may not be excited about stand-alone condos, integrated developments like master-planned communities attract their interest.
TREB Market data analysis also supports this trend. In Toronto, residential master-planned cities have clearly been shown to appreciate more than their stand-alone counterparts.
Case Study
Name: Concord CityPlace
Location: C01 District, Toronto
Return On Investment: 182%
Between 2009 to 2020, the master-planned community of the Concord CityPlace appreciated 182%. This is in a period, when the stand-alone condos in the area could register an appreciation of only 125%.
To put things in perspective, let’s say your friend invested $200,000 into a stand-alone condo in 2009, and you invested the same amount of $200,000 in Concord CityPlace. Then, today your friend would get $450,000, and you would receive $564,000. You would get $114,000 more, or a return that is 57% higher than what your friend received.
Make the Move
With historical data in favour of master-planned communities and Canadians preferring walkable communities, it is not difficult to understand the path real estate investments will follow. Master-planned cities are also built in phases, giving investors more time to understand how infrastructure development in the surrounding area is progressing.
With such strong fundamentals and excitement in the market, master-planned cities present a strong case for being a better investment than stand-alone condos, and smart investors understand it. So, if you are looking to invest in condos in Canada, choose wisely and make a move quickly so that you can gain from the appreciation and not pay for it.
