The stability of Canada’s real estate market continues to attract positive attention from domestic and international investors. These market participants range from sovereign wealth funds to experienced local market investors. While the overall market could easily be described as “healthy,” the current real estate and capital market environment requires that each investment be carefully evaluated on its own merits.
Emerging Trends in Real Estate survey participants optimistic for profitable 2014
Canada’s economy is expected to continue to grow, albeit at a slower pace. Job growth is projected to be slower, but still good, in 2014. The slower economic growth is not expected to significantly disrupt the real estate market. Survey participants are optimistic for a profitable 2014.
This year's survey indicates that capital will be available. The investment market is expected to remain strong in 2014 as both domestic and non-domestic investors find the Canadian real estate market attractive. Any change in the investment market could see a change in the most active acquirers as different investors adjust their return expectations.
Urbanization may continue as a dominant trend in 2014 and with it generate the opportunity for redevelopment of urban locations and the rise in mixed-use projects. The retail market will see changes as a number of retailers are expected to continue to add location in the market. Development, condominiums and for-rent apartments will again be a key topic during the year. Rising housing prices will put more focus on how the nation can continue to provide enough affordable housing to a population base fuelled by strong immigration.
Canadian real estate markets to watch
Survey respondents see the average overall rating for Canada's nine largest commercial real estate markets as "modestly good" for investment and development in 2014. Average prospects for homebuilding are rated as "fair." Calgary is their unanimous choice for "top market" for prospects in three categories: investment, development and homebuilding. Edmonton, Saskatoon and Vancouver followed, in order, to make the top four cities in Canada.
Read our survey, Emerging Trends in Real Estate 2014 on real estate investment and development trends in Canada and the US to learn more.
|Emerging Trends in Real Estate® 2013 (7.90 MB)
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