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 – Strength in the energy and base metal stocks lifted Canada’s main stock index higher in late-morning trading, while U.S. stock markets also climbed higher.
The S&P/TSX composite index was up 78.80 points at 23,973.51.
In New York, the Dow Jones industrial average was up 89.81 points at 42,214.46. The S&P 500 index was up 2.55 points at 5,721.12, while the Nasdaq composite was up 21.24 points at 17,995.51.
The Canadian dollar traded for 74.24 cents US compared with 74.02 cents US on Monday.
The November crude oil contract was up US$1.06 at US$71.43 per barrel and the November natural gas contract was down two cents at US$2.83 per mmBTU.
The December gold contract was up US$18.10 at US$2,670.60 an ounce and the December copper contract was up 15 cents at US$4.49 a pound.
This report by The Canadian Press was first published Sept. 24, 2024.
TORONTO – Canada’s main stock index was essentially unchanged Friday, while U.S. markets were mixed to end the week, with the Dow ekeing out a new record high.
The S&P/TSX composite index closed up 1.28 points at 23,867.55.
In New York, the Dow Jones industrial average was up 38.17 points at 42,063.36. The S&P 500 index was down 11.09 points at 5,702.55, while the Nasdaq composite was down 65.66 points at 17,948.32.
The Canadian dollar traded for 73.72 cents UScompared with 73.73 cents US on Thursday.
The November crude oil contract was down 16 cents at US$71 per barrel and the November natural gas contract was up 12 cents at US$2.72 per mmBTU.
The December gold contract was up US$31.60 at US$2,646.20 an ounceand the December copper contract was down a penny at US$4.34 a pound.
This report by The Canadian Press was first published Sept. 20, 2024.
TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.
The S&P/TSX composite index was up 254.62 points at 23,847.22.
In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.
The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.
The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.
The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.
This report by The Canadian Press was first published Sept. 19, 2024.
