Trump 2.0: The First 100 Days | Canada

Canada Capital Markets Lagging

Key Observations

• Heading into 2025, there was growing sentiment in the CRE investment space.

Sales Volume Slightly Down (YOY)

Pricing Still Correcting

• Although most global regions were showing signs that a trough in markets had been reached in both pricing and volumes, Canada appears to be lagging. In Q4 2024, volumes continued to mildly decline at a ~10% YOY pace for the third quarter in a row, while others saw stabilization or increases: APAC (-5.5%, less than Q3 2024 when the decline was -16.3%), Europe (+16.8%) and the U.S. (+15.0%). Likewise, Canada’s CPPI has not mimicked patterns in other regions and is 1% off its Q3 2024 peak. By comparison, the U.S. All Property CPPI is down 11% after peaking in Q2 2022. • Although all sectors have been hit by the recent market sell-off, CRE pricing has been relatively more resilient in public markets and during periods of uncertainty — especially those accompanied by inflation — hard assets tend to be favored. • Despite that, rising uncertainty may create a cloud over investor sentiment that derails some of the recent positive progress.

245

200%

150%

240

100%

235

50%

6.5%

230

0%

-10.3%

-50%

225

-100%

220

22Q1

22Q2

22Q3

22Q4

23Q1

23Q2

23Q3

23Q4

24Q1

24Q2

24Q3

24Q4

22Q1

22Q2

22Q3

22Q4

23Q1

23Q2

23Q3

23Q4

24Q1

24Q2

24Q3

24Q4

Global

Canada

Canada All Property CPPI

Source: MSCI Real Capital Analytics

Cushman & Wakefield

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