The Canadian Real Estate Services Market is Estimated to Register a CAGR of Approximately 2.5% Between 2022 and 2027 – ResearchAndMarkets.com
DUBLIN–(BUSINESS WIRE)–The “Canada Real Estate Services Market – Growth, Trends, COVID-19 Impact, and Forecasts (2022 – 2027)” report has been added to ResearchAndMarkets.com’s offering.
The Canadian real estate services market is estimated to register a CAGR of approximately 2.5% during the forecast period.
A boost in the demand for mortgages, amid historically low levels of interest rates during much of the period, has boosted the demand for real estate.
Developers and investors have been working on increasing rental supply, to offset the demand that is brought on by more stringent mortgage qualification rules and the country’s growing population over the past two years, resulting in a decrease in mortgage credit.
By the end of Q3 2019, it was reported that nearly 72,000 rental units were under construction in Canada, the highest rate in more than 30 years. The annual growth rate of 21%, during the third quarter of 2019, was the highest since Q2 2016.
Ontario and Quebec hold the largest shares in the country’s facility management market. Growing infrastructure-based developments, increasing demand for sustainable facility management solutions, and rising technology integration are some of the other factors that can aid the facility management market in the country.
After a period of stability, 2018 witnessed more than a 16% drop in the number and value of residential appraisals. Commercial appraisals were more stable.
Canada Mortgage’s interest rates declined, including the Bank of Canada’s benchmark five-year rate used by Canada’s largest banks to qualify their applicants under the B-20 mortgage stress-test. The number of houses available for sale in these provinces, which represented over 80% of the national activity, was at a 15-year low. This is expected to support the solid price growth of homes in the coming years.
Key Market Trends
Recovery in the National Sales of Houses
The sales of houses in July 2019 rose by 12.6%, as compared to that of the same month in the previous year. This increase was due to a rise in sales in most of the country’s largest markets, including the B.C.’s Lower Mainland, Calgary, Edmonton, the Greater Toronto Area and Hamilton-Burlington, Ottawa, and Montreal.
On a month-over-month basis, the sales were up by 3.5% in July 2019, as compared to that of June 2019. This increase in sales was a result of the number of newly listed homes edging back by 0.4%, in July 2019. Slightly higher sales and a drop in the new listings further tightened the national sales-to-new listings ratio to 66.3%, which was well above the long-term average of 53.7%.
If such trends keep continuing, the balance between the supply and demand will result in further gains from the prices of houses. Meanwhile, an ongoing shortage of homes available for purchase across most of Ontario, Quebec, and the Maritime provinces shows that the sellers have the upper hand in sales negotiations.
The number of months in the inventory is another important measure for the balance between the sales and supply of listings. It represents the time required for liquidating the current inventories, at the current rate of sales activity.
Major Contribution to the Canadian GDP from the Real Estate Industry
The service sector accounts for 75% of the jobs in Canada and 78% of the country’s GDP. This sector includes the following segments: transportation, economics, health care, construction, banking, communication, retail, tourism, and government. As an essential part of the Canadian economy, the most popular sector is retail, which has some big franchise names, including Walmart and Future Shop.
In the recent years, the financial services, real estate, and communications industries have grown exponentially, especially in the business hubs of Vancouver, Montreal, and Toronto. Real estate contributes to a major portion of the GDP. In housing estimates, housing under construction (242,183 units in Q3 2018) and housing completions (48,798 Q3 in 2018) increased in Q3 2019, to 258,694 units and 49,201 units respectively.
Competitive Landscape
This report covers the major players operating in the Canadian real estate services market. The market is fragmented, comprising both international and local players. Some of the prominent international companies present in the region include Colliers International Group Inc. and Cushman & Wakefield ULC. The real estate sector is gradually recovering and is expected to grow during the forecast period.
For more information about this report visit https://www.researchandmarkets.com/r/s1q5ey
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