MISSISSAUGA—Morguard’s latest report for the real estate development sector highlights the continuing effect of inflation in the Canadian market and predicts strong investment property sales for the rest of the year.
The Canadian Economic Outlook and Market Fundamentals Report covering Q1 analyzes the real estate market and forecasts trends to watch out for in 2022.
Morguard notes consumer price growth reached a 30-year high level in the first quarter, and inflation was predicted to outdistance income and wage growth.
The report found Canadian investment property sales activity continued at a peak level in the first quarter, driven in large part by the industrial and multi-suite residential rental sectors, and are predicted to continue at or near record-high levels for the balance of 2022.
The Canadian economy was forecast to expand at a relatively strong rate over the balance of the year thanks to robust service sector expansion and moderate goods sector expansion.
Just shy of $3.4 billion of investment transaction volume was reported for the industrial, office, multi-suite residential, office and retail property sectors for the Vancouver, Calgary, Toronto, Ottawa and Montreal metros combined in the first quarter.
Industrial supply remained critically low in the country’s three largest markets, Morguard reported, with Vancouver, Toronto and Montreal beset by availability rates of less than 1.0 per cent.