Canada’s real estate investment universe moved up a notch in the global rankings in 2020 as MSCI pegged the inventory of professionally managed real estate held for investment purposes at nearly USD $364 billion (CAD $546 billion), representing a USD $2.9 billion (CAD $3.6 billion) gain in market size from 2019. That places the Canadian market as the seventh largest among the 33 that the Global Property Index producer monitors for its annual report gauging the size of the professionally managed global real estate investment market.
Making way for Canada’s ascendance, the Hong Kong market slipped to eighth following a USD $22-billion loss in market size, trimming it to USD $356.3 billion. It was one of just three markets, along with Brazil and South Africa, on a downward trajectory.
Overall, MSCI estimates global market size grew 9 per cent to reach USD $10.5 trillion in 2020. That’s up from USD $9.6 trillion in 2019. The United States was a significant contributor to that tally, registering a USD $232.5 billion increase in market size over the course of the year. Other strong performers include Germany, Sweden and Switzerland.
“The real estate market’s convincing expansion in the face of the COVID-19 pandemic seems to underscore investors’ resolute search for returns across asset classes,” René Veerman, MSCI’s head of real estate, asserted in his foreword to the recently released report.
Although he attributes some of the value gain to currency fluctuation, he notes 2020’s “subdued” transaction activity and asset value growth — concluding that the growth in market size stems more from new additional investment than dynamics of the pre-existing holdings. Across the global market, asset value fell 1.3 per cent relative to 2019, in contrast to the 2.9 per cent gain in 2019 relative to 2018. Currency movement pushed market size up by 3.9 per cent in 2020 versus just 0.1 per cent in 2019.
Those effects were not felt evenly among the 33 surveyed markets. Canada saw one of the steepest declines in capital growth of any nation — at negative 7.8 per cent — yet still achieved 1.1 per cent asset value growth. Ten markets recorded positive capital growth, led by Norway with a gain of 5.2 per cent. The U.S. recorded negative 2.8 per cent capital growth with 1.2 per cent asset value growth, while the United Kingdom suffered steeper losses, with capital growth at negative 6.5 per cent and more moderate asset value growth at 0.5 per cent.
After the U.S., which alone accounts for a nearly 35 per cent quotient of the global real estate investment universe, the next largest markets are Japan, the United Kingdom, Germany, China and France. The U.S., Canada and Brazil, which together are defined as “the Americas” accounted for nearly 39 per cent of market size in 2020 versus about 35 per cent for nations identified as EMEA (Europe, Middle East and Africa) and 26.5 per cent for Asia-Pacific nations.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
