Real Estate Returns Slip


    With returns of 7.3 per cent for 2014, Canadian real estate appears to be slowing after five strong years, says Simon Fairchild, executive director of MSCI. He revealed results of the ‘REALpac/IPD Canada Quarterly Property Index.’ Last year’s return was down from the 11 per cent of 2011 and ended a five-year string where Canada was a global leader in the category. Still, the 10-year return is 11.4 per cent. Of the return in 2014, 5.2 per cent came from income return and 1.9 per cent was from capital growth. Net inflows were $5.5 billion with retail and offices getting the lion’s share and Toronto, ON, receiving about half of the inflow. However, Stephen Taylor, vice-president, real estate, at HOOPP, doesn’t see anyone cutting back on real estate. However, they may have to look outside Canada as even in the secondary markets here prices have been bid up, reducing the opportunities.