Canadian real estate returns fall to 14 year low, says IPD



    CHICAGO, Feb. 19 /CNW/ - IPD today released the 2008 results for the
ICREIM / IPD Canada Annual Property Index, which at the end of December 2008
covered C$96.5 billion of commercial real estate. The Index saw a total return
for 2008 of just 3.7%, down sharply from the 15.8% recorded in 2007, and the
lowest level since 1994.(1)
    Despite the softening of investment yields, direct property still
outperformed equities, which fell by -31.4% according to the MSCI Canada
Index, and REITs which returned -39.3% according to the FTSE EPRA/NAREIT
Index, but trailed bonds which returned 15.2%, as measured by the JP Morgan
7-10 Year Government Bond Index.
    "Declines in property values account for the weaker returns recorded in
2008, with on average capital value write downs of 2.3%," said Doug Rowlands,
Senior Manager at IPD.
    Of the major sectors, Offices was the top performer for the third
consecutive year with a total return of 7.6%, followed by Residential at 6.4%
and Industrials at 2.3%. Retail returns turned modestly negative in 2008, at 
-0.1%.
    Western Canada markets continued to outperform markets in Eastern Canada.
Edmonton once again took top spot among the major markets, although its return
of 11.7% was down significantly from 29.8% in 2007. The other major markets
all moved down into single-digit return territory or lower: Calgary (7.3%);
Vancouver (7.0%); Ottawa (5.4%); Toronto (2.7%) and Montreal (0.3%).

    Notes to editors:

    (1) Data prior to 2000 provided by Frank Russell Canada

    Additional results will be presented at the 2009 launch to be held in
Toronto March 4th. (Contact Patricia Arsenault,
patricia.arsenault@altusgroup.com for details).

    IPD is a global information business, dedicated to the objective
measurement of commercial real estate performance. As the world's number one
provider of real estate performance analysis for funds, investors, managers
and occupiers, we offer a full range of services including research,
reporting, benchmarking, conferences and indices. We operate in over 20
countries including most of Europe, the US, Canada, South Africa, Australia,
New Zealand and Japan. Our indices are the basis for the developing commercial
property derivatives market, and the most authoritative measures of real
estate returns worldwide. For further information visit www.ipd.com

    The ICREIM / IPD Canada Annual Property Index, one of the 22 component
country indices of the IPD Global Property Index, measures the returns to
directly held standing property investments from one open market valuation to
the next. Additional indices are calculated covering the major sectors of the
Canadian property market.





For further information:

For further information: Douglas Rowlands, Senior Manager, Canada, (312)
646-6251, douglas.rowlands@ipd.com; Patricia Arsenault, Executive
Vice-President, Altus Group (IPD Canadian affiliate), (416) 698-4652,
patricia.arsenault@altusgroup.com; James Wallace, Global Press Officer, +44
(0)20 7336 4778, james.wallace@ipd.com

Organization Profile

INVESTMENT PROPERTY DATABANK (IPD)

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890