The latest Investment Trends Survey by Altus Group found that investment activity in Canadian real estate remained strong in the second quarter of this year, a trend fuelled by robust demand with investors predicting that “overall cap rates will remain flat with a modest decline for specific markets and assets.”
This despite prevailing uncertainty over global trade and the Canada-U.S. tariff tit-for-tat, as the study established that Canada’s property markets are still seen as prime destinations by both domestic and foreign investors.
“Quarter-to-quarter, Toronto’s cap rates for suburban multi-unit residential and industrial products are anticipated to push downwards,” the report noted. “Tier 1 Regional Malls and downtown Class ‘AA’ office cap rates remain steady, following a slight uplift in retail and a cap rate compression among offices in the previous quarter.”
Meanwhile, “Vancouver’s average overall cap rates for industrial and multi-unit residential moved down slightly from Q1, while Vancouver’s Tier 1 Regional Malls have gently climbed and downtown Class ‘AA’ office remains stable,” Altus added.