The REALpac/IPD Canada Quarterly Property Index shows that Canadian commercial real estate continued to deliver strong results in 2013 with a total return of 10.7 per cent, reports CNW.
In 2013, real estate underperformed public equities, checking in at 13.6 per cent (MSCI Canada Index). However, it outperformed bonds at -3.6 per cent (J.P. Morgan Government Bond Index 7-10 years) and inflation at 1.2 per cent (Statistics Canada).
Of Canada's six largest real estate markets, commercial real estate in Calgary
showed the biggest gains. But the situation was noticably different in Montreal and Toronto, where returns were slightly below the market average.
The lowest returns were seen in Ottawa. The
sub-par performance in the capital region was caused by below-market income and capital returns.
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