CRE industry conditions and sentiment survey - Canada Q3 2024 results
Gain insights into the market sentiment, conditions, metrics, and issues affecting the Canada commercial real estate industry based on our Q3 2024 survey.
Q3 results reveal a rise in community and regional concerns, shifts in pricing perception and transaction intentions
Altus Group conducted a survey across Canada to provide insights into the market sentiment, conditions, metrics, and issues affecting the commercial real estate (CRE) industry.
Key questions include:
How would you characterize current pricing by property type?
What are your expectations for the availability of capital over the next 12 months?
Rank which property types you expect to be the best/worst performing in the next 12 months.
We are happy to announce that the Q3 2024 results for Canada are now available for download.
Canadian Survey Results
Key findings
Price perception
The majority of respondents viewed land/development and single-family residential properties as "priced too high", with 81% and 77% of responses, respectively.
Community concerns
Zoning reform became a top priority, surging by 10 percentage points (pp) followed by an 8 pp rise in province/local regulations, and a 6 pp increase in employment and income growth.
Industrial & Multifamily
People who viewed industrial properties as a potential "best performer" dropped 15 percentage points (pp) compared to Q2. Similarly, multifamily properties also suffered a 10pp decline.
Transaction intent
A significant majority (75%) of respondents stated that they plan to transact (buy and/or sell) in the near term, up 10 percentage points from Q2, and the highest level in the last four quarters.
Capital conditions
Expectations for cost of capital and interest rates swung significantly over the last two quarters, with respondents anticipating a decrease in both metrics over the next 12 months.
About the survey
The Commercial Real Estate Industry Conditions and Sentiment Survey is a quarterly survey providing insights into the market sentiment, conditions, metrics, and issues affecting the Canadian and United States commercial real estate industry.
The Q3 installment of the Canada survey was conducted between July 11th and August 6th, 2024. There were 241 respondents, representing at least 89 different firms.
Resources
Latest insights
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