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Monday, January 28, 2013

Canadian Real Estate Market in 2013

Toronto Office Space

With a slow recovery from the US economy and Europe struggling to find its way out of the economic crisis, Canada remains waiting to feel the effects, and opinions are divided between those who are optimistic and those who believe the crisis is already here.
Let’s start by mentioning some numbers released recently about the Canadian real estate market.

In 2012, most of the cities saw a decline in sales:
Toronto, which is one of the important areas saw a decrease of 5%, Vancouver’s sales dropped 20% year over year, Newfoundland went down 11%, but not everything was bad news.
Calgary saw an increase of 18.6% and the Durham area increased nearly 12% year over year.
This leads us to the national average, which went down 1.1%

While some experts have started talking about a bubble which will destabilize Canada, others say that the market will remain stable as purchasing activity is robust, and will continue for another year.

What will happen with the commercial market? Experts say there will be some risk increase by the end of the year especially in Toronto, Calgary and Vancouver, but during 2013 rental market conditions will improve, and this is backed up by the construction volume.

According to Colliers, few changes are expected as during the last quarter of 2012, office renting saw a high absorption of spaces, especially in the downtown areas.
With new projects entering the market this year, it’s probable that landlords will face stronger competition and may have to reduce prices or increase the value they are offering to remain in this competitive market.
The bank of Canada lowered its growth forecast to 1% for 19th consecutive time and set at 2% the expansion of the economy.

While experts debate on the future of the economy, we prefer to be part of the ones that think positive. It’s understandable a slowdown with the economic context the world is living, but we’re confident it can be reverted during 2013.

While the year unfolds and we see answers to these questions, OfficeList will always be ready to help those who need an workspace, we can always find your next office.

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