Could developers faced with an onslaught of condo developments shift their focus to apartments? The head of a prominent real estate brokerage seems to think so, reports the Financial Post.
A news release from Rock Advisors Inc. forecasts that the number of purpose-built apartments will grow in 2014 as developers look to other sources for income.
“Everything that a condominium developer does can be applied to the building of apartments,” Derek Lobo, chief executive of Rock Advisors.
Lobo says purpose-built rental apartments were unaffected by the 2008 recession, and continue to outperform all other sectors of the real estate market.
“Purpose-built rental apartments give such developers an ongoing revenue stream if they hold onto a building and rent out the units rather than selling the building for a quick buck,” Lobo said.
He added that apartment starts in Toronto were up from the previous month and that they have bolstered the housing market.
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