Investment in Canada continues to exhibit robust activity, demand

 

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.

 

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