Canadians have spent about $3.85 billion this year so far in Manhattan real estate, almost doubling the $1.97 billion they bought in 2014, according to Real Capital Analytics (RCA), a commercial real estate data and analytics firm. The biggest investors from Canada are pension funds, including Canada Pension Plan Investment Board and the Ontario Municipal Employees Retirement System.
Over the past decade, Canada has purchased 81 properties in Manhattan for about $15.37 billion, surpassing any other cross-border country. United Arab Emirates has been the second biggest investor in the Manhattan market over the past decade, investing roughly $8.8 billion in 15 properties, with China only falling shortly thereafter in third, investing $8.1 billion in 30 properties.
According to Jim Costello, senior Vice President at RCA, “Canada has a lot of wealth and a limited number of real estate assets so investors look next door to the U.S. to make investments”, noting that there is a location, language and cultural connection that Canadian investors find appealing with the U.S. real estate market.