Real estate lending holds promise for 2022, particularly for borrowers with multifamily and/or grocery-anchored retail acquisitions in mind. More than two-thirds of Canadian lenders participating in CBRE’s recent annual survey indicated plans to increase allocations to real estate, equating to an estimated 10 to 20 per cent boost in availability of capital compared to 2021.
“The survey results represent a significant shift in lender sentiment from caution to opportunity and real estate lenders are ready to support businesses and investors looking to finance real estate transactions,” maintains Carmin Di Fiore, executive vice president with CBRE’s debt and structured finance team.
The survey was conducted in October and early November of 2021 and draws findings from 30 finance companies that collectively have more than $200 billion in loans under management. It generally shows improved lender confidence in 14 of 17 identified asset sub-classes, while regional malls in secondary markets and Class B office buildings, both downtown and in the suburbs, now inspire more consternation than they did in the fall of 2020.
Those three categories currently carry the most pessimistic outlook in lenders’ views. Hotels aren’t exactly inspiring zeal, with more than 65 per cent of respondents indicating concerns, but they have improved standing from 2020 and a small percentage of lenders reports plans to increase budget allocations to the asset class in 2022.
Meanwhile, experiential retail, which was also ranked in the bottom three asset classes last year, has made the most notable gains in lenders’ estimation. Slightly more than 30 per cent of respondents labelled it a cause for concern this fall versus nearly 70 per cent in the fourth quarter of 2020. Regional malls in central business districts, retail power centres and value-add retail are also considered in a markedly more optimistic light than 12 months ago. Overall, the survey found the most upbeat perspective on retail since 2018.
“Last year, the vast majority of lenders saw the disruption in retail as a sign of a permanent structural shift, but this year, lenders are now evenly split on whether it is permanent or temporary,” the report notes. “In order for lenders to proceed with a retail deal, it appears that NOI (net operating income) durability is paramount. The top two most important factors for securing a retail loan were the credit worthiness of the tenant(s) and the existence of a food or necessity-based anchor.”
Looking to the most favoured asset classes, lenders express little to no concern about multifamily apartment buildings or grocery-anchored retail. For industrial, the miniscule uptick in concern compared to 2020 might relate to the highly competitive market.
In 2021, 34 per cent of surveyed lenders were under their envisioned budget for industrial loans. They recorded the next largest shortfall on multifamily, with 15 per cent failing to meet their budgets. At the same time, 48 per cent of lenders reported they surpassed their envisioned allocation to multifamily in 2021, 28 per cent were over budget on industrial loans, and 75 per cent of respondents have plans to increase allocations to both those asset classes next year.
Ambitions to expand real estate lending in 2022 occur in the context of 2021’s record-setting investment volume and expectations for a competitive deal environment heading into the new year. In response, survey respondents expect to employ a range of tactics, with refinancing within their existing loan portfolio emerging as the most popular option.
“Over the latter half of 2021, 60 per cent of lenders reported experiencing a moderate increase in competition for real estate deals, while a further 27 per cent found the increase in competition to be material. This momentum is expected to continue into 2022, where lenders expect Canadian domestic banks, insurance companies and pension funds to be the most aggressive in securing deals next year. Normal levels of competitiveness are expected from foreign banks and trust companies,” the report affirms.
In addition to the 70 per cent of lenders expecting to expand real estate lending through refinancing, 59 per cent plan to pursue a wider array of borrowers; 41 per cent promise more competitive rates; 37 per cent are targeting additional property markets and/or more geographic locales; and 22 per cent are looking at alternative property types such as student housing, life science facilities, data centres and other non-conventional asset classes.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
