Investment in commercial properties in the Greater Toronto Area stood at around $5.6 billion – across 574 transactions worth over $1 million – in the second quarter of this year alone, according to a new study by the Altus Group.
This buttressed the market’s status as a leading real estate destination for buyers and investors alike. Residential land posted a total of $1.5 billion in investments last quarter, while ICI land saw $1.3 billion. Together, these accounted for 50% of the total capital flows for Q2 2018.
Overall investments for the first half of the year stood at $11.3 billion, representing a 6% annual gain over the record-breaking first 2 quarters of 2017.
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However, Altus warned that the robustness of GTA commercial real estate might not hold until the end of this year, as reticence will characterize most investment activity for the second half of 2018.
“Investors will continue to move cautiously and remain selective in the bidding of assets as investment product remains limited, especially core assets,” the report stated. “Regulatory and lending policies as well as trade disputes may cause some uncertainty surrounding the economy, leading investors to be more selective with their acquisitions.”
This will ultimately lead to this year’s investment activity being lower than 2017 levels, Altus concluded.
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