Canada is the largest foreign real estate investor in the United States. Canada accounted for 26% of the foreign investment of over a quarter of U.S. real estate. They invested $9.7 billion, which is 44% of the foreign investments (Gerrity). A Canadian property investor just purchased an office building in Manhattan in June. The purchase was the second largest foreign real estate purchase in the history of the U.S. The buyer, Ivanhoé Cambridge, is the real estate arm of pension fund giant Caisse de dépôt et placement du Québec partnered with Callahan Capital Properties to buy a midtown Manhattan office tower Three Bryant Park for $2.2 billion (WSJ).

 

The low interest rates in the U.S. have made U.S. real estate investments attractive for not only Canadian corporations, but also for Canadian citizens looking for residential investments. Canadians can rent their residential property without having to fully pay all estate tax on the property. It is not uncommon for Canadian citizens to come to the U.S. to retire. These people are known as “snowbirds”. Snowbirds typically buy property in the sun belt of the U.S., places like Florida, Arizona, Texas, and in their surrounding areas.