CRE industry conditions and sentiment survey - Canada Q2 2024 results
Gain insights into the market sentiment, conditions, metrics, and issues affecting the Canada commercial real estate industry based on our Q2 2024 survey.
Canadian Survey Results
Key findings
Capital availability
Concerns regarding capital/credit availability overtook concerns about inflation with 45% citing the former as a top priority issue in the next 12 months.
Construction costs
The percentage citing development / construction costs (land, labor, materials) as a top priority issue in the next 12 months increased 10 percentage points from 1Q 2024 to 56%.
Transaction intentions
Intentions to buy (56%) in the next 6 months still outweigh intentions to sell (38%), though those intending to hold (35%) was up 6 percentage points from Q1 2024.
Cost of debt
Respondents’ 12-month forward view of all-in, fixed-rate financing increased to 6.0-7.3%, up from 5.6-7.0% in Q1 2024, across the main portfolio strategies.
Recession concerns
Across investment strategies, 45% of respondents expect a recession to be either “very likely” or “somewhat likely” in the next 6 months, however this is down from 63% in Q1 2024.