Raymond James Ltd is planning to release a new research study that compares the Canadian and U.S. real estate markets.
The report will cover 16 Canadian real estate investment trusts and operating companies.
“The publicly-traded real estate sector in Canada has performed well over the past year, with the TSX/Capped REIT index delivering a 14.4% total return,” says Ken Avalos, senior real estate analyst in Canada.
Read: Cdn housing headed for a soft landing
He adds, “This compares favourably with the U.S. benchmark over the same period, which posted a 16.6% total return.”
He says the Canadian real estate market has considerable room to grow, and expects the current low interest rate environment and improving commercial real estate fundamentals to benefit several Canadian real estate equities in the short term.
“While there are attractive growth opportunities ahead, the sector will likely not operate without some volatility in the year ahead,” says Avalos. “If investors can stomach some volatility, the long-term gains for several Canadian real estate equities should be very attractive if they continue to mirror the U.S. real estate experience.”
Read:
U.S. housing to grow at slower pace