Viewpoints

Canadian Real Estate Outlook “One foot on the gas, and the other on the brake”

Posted on April 30, 2013 in Viewpoints by admin

Canadian Real Estate CEOs Show Cautious Optimism for the Coming Year.

The latest report from William Ferguson reflects on what is likely around the corner for Canada’s real estate market.

(for a full report, click here) Canadian real estate executives are bullish about their prospects for the coming year, but a few unknowns, like continued low U.S. interest rates and the level of demand for Canadian products and resources, were cause for caution. The report, “Canadian Real Estate Outlook,” by Ferguson Partners Ltd., brings together insights from some of Canada’s top real estate CEOs to paint a picture of where the Canadian real estate sector is headed in 2013.

“Last year, the Canadian real estate market did enviably well because of the country’s fiscal conservatism and close-knit professional real estate community,” said William J. Ferguson, author of the report and co-chairman and co-CEO of Ferguson Partners. “This year, it seems as though executives have one foot on the gas and one on the brake. On one hand, they’re optimistic about the increasing institutionalization of real estate investors, with capital-rich pension funds and REITs making a bigger imprint on the market. On the other hand, they’re not sure what will happen with global interest rates or demand for Canadian exports – both of which will have a large impact on real estate.”

Overall, a few common themes emerged from interviews with the CEOs, including:

“Canadian Real Estate Outlook” is a result of conversations with some of Canada’s most prominent real estate CEOs, including Lorne Braithwaite, president and CEO of Build Toronto, Inc., Michael R. Emory, president, CEO and trustee of Allied Properties REIT, R. Scott Hutcheson, chairman and CEO, Aspen Properties, and David Podmore, chairman and CEO, Concert Properties, Ltd. In addition, the report draws from Bill Ferguson’s newly released book: “Market Discipline – The Competitive Advantage: Lessons from Canada’s Real Estate Leaders,” published by the Real Property Association of Canada (REALpac).