Ask any Torontonian and we'll share our love for the strength and synergy that pulsates through the urban arteries of this city, lending it character and defining its hip vibe. It’s not something you see, but we all feel it through a culmination of sensory experience, and it runs deep. It’s like a relationship which has evolved into all-knowing connection, collectively built through common experience, yet extremely personal.
In Toronto, there is a sense of inner fortitude and resilience that characterizes the City proper. And this isn’t just fodder for coffee shop conversation in your local hood, either, nor is it a “feeling” about your city.
No! It’s official! Toronto has been endorsed as the most resilient City ‘round the globe, making it a veritable hot spot and amping up its appeal as a real estate investment destination.
Grosvenor Group, a privately-owned property group with international interests recently released a report ranking the Top 50 Cities globally according to their “resilience”, which they define as “a product of their environmental and social vulnerability and adaptive capacity, which covers community, infrastructure, resources, environmental and climatic factors.” Incidentally, Canadian cities swept the top three in this international index: Toronto, Vancouver and Calgary respectively.
So, why does Toronto lead the pack?
Grosvenor Group offers an interesting perspective. They acknowledge that success in business (and of course, in real estate investment) is inextricably linked to “sustainable growth of the cities in which we invest, and understanding a city's resilience, its ability to avoid or bounce back from an adverse event.” It’s how cities preserve and grow capital values over time. Toronto, as is pointed out in the report, has this ability in spades.
"Toronto is no stranger to the importance of resiliency, having endured natural disasters such as the 1998 ice storm and even Hurricane Hazel, in 1954," said Richard Barkham, Grosvenor's Group Research Director. "The investment of city leaders in infrastructure and its commitment to upgrading it over the decades has put Toronto at the top of Grosvenor's list of the world's most resilient cities."
According to Grosvenor, there is an inverse relationship between vulnerability (infrastructure, environmental and social adaptability in the face of challenge or change) and the likelihood of long term real estate investment value.
They talk too about the relationship between risk and reward. Some centres that rank lower down on the list, present significant upside - which comes at a greater risk of course. They stress that they are not trying to discourage people from investing in cities that rank further down the list, but rather that their research draws light to the risks faced in specific cities, which they hope can encourage dialogue between sectors on how they can reduce levels of vulnerability and increase resiliency.
Toronto is a frequent grabber of media headlines. At the moment, click Rob Ford's face below for some Jimmy Fallon 'Tonight Show/CTV' fun:
Ok, so when the media isn't lauding the bizarre behaviour of our Mayor Rob Ford, it's raging on the scorching property market, where prices keep climbing and climbing as buyers out populate quality housing stock at a speedy pace. Analysts are frequently expressing concern about the state of the market, suggesting that bubble-forming behaviour is taking place. These opinions have been frequently countered with other analysts, who feel that Toronto’s housing market is not vulnerable to a major correction, because of the existence of demographic and economic fundamentals that will contribute to balance.
This latest index helps strengthen the argument for balance, suggesting additional external factors (like those Grosvenor attributes to a city’s resilience) show that the framework that supports and surrounds Toronto is strong.
Correction- it’s not just strong. It’s the strongest in the world, according to this Report.
Do you find yourself often trying to decipher media headlines and data surrounding Toronto Real Estate? While this information is all important, it can be difficult to interpret and to understand in context of your own real estate goals. Urbaneer monitors the media regularly, and makes a point of uncovering and sharing timely information- which is the best route towards solid decisions.
~ Steven and the urbaneer team
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**Skyscraper Walk Photo by Ian Rebello
** So Hip It Hurts by Scooter Korek