Canadian real estate hits high
Canada’s commercial real estate market hit a record C$11.16 billion ($8.41 billion) in quarterly transaction volumes and is on track to reach new highs for the year, as investors’ hunt for yield and gains in the oil-producing province of Alberta bolster activity, real estate services firm CBRE Limited said.
A recovery in oil prices and a few large transactions helped Calgary post its best third quarter in over two years with C$1.2 billion ($904.23 million) in investment and a rise in activity in the hard-hit, commodity-driven city, CBRE wrote in a report.
“With oil prices beginning to slowly drift upwards and improved market sentiment, we’re seeing increasing activity in Calgary, particularly for prime, well-leased assets,” Peter Senst, president of CBRE Canada Capital Markets, said in a statement.
“Although a few large transactions helped make Q3 a very strong quarter for Calgary, what’s more encouraging is the 21 percent increase in the number of deals made compared to the previous quarter.”
Nationally, real estate transactions rose 87 percent in Canada during the third quarter of 2016, compared with the same period in 2015, and were up 13 percent compared with the second quarter of this year, CBRE wrote.
Foreign capital, which totaled C$3 billion ($2.26 billion) during the quarter, represented 41 percent of all transactions worth C$10 million ($7.54 million) and over, and was directed primarily at Canadian hotels.