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Canada  + Finance  | 
Montreal condo prices rose in the first quarter of 2024.

Cost of CRE Capital Expected to Stabilize

Canadian commercial real estate investors will come off the sidelines in the first six months of 2024, according to a new Altus Group report.

Most respondents to a quarterly Altus survey on conditions and sentiment said they intend to complete transactions after a prolonged period of muted activity. Intentions vary significantly according to company size, said Altus.

Meanwhile, the cost of capital is expected to stabilize. However, capital availability remains challenged in the near term amidst expectations of a shallow recessionary macroeconomic backdrop and a challenging operating environment.

Investors rank industrial and multi-family as the most favoured property types. Canadian investors are targeting returns of 11.6%. Financing, cost of capital and concerns are rated as the top issues. Regulatory and political risks have emerged as higher priority items, particularly in the U.S.

A report from PwC and the Urban Land Institute has rated industrial as the best Canadian commercial real estate investment bets in 2024. A Morguard report says that Canada’s commercial real estate market remains steady.

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About Monte Stewart

Monte Stewart serves as Content Director - Canada for Connect Commercial Real Estate. Based in Vancouver, British Columbia, Monte provides daily news coverage of major Canadian commercial real estate markets, including Vancouver, Toronto, Montreal and Calgary. He has written about the real estate sector for various media outlets and Avison Young since the early 2000s. In addition, he has covered sports, general news and business for several leading wire services and publications, including The Canadian Press, The Associated Press, The Calgary Herald, The Globe and Mail, Research Money, The Daily Oil Bulletin, Natural Gas World and The Toronto Star. Monte is active in his community as a youth basketball coach and raises funds for such charitable causes as Movember.

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