Canada commercial property records three year high

Figures have shown that investment in commercial real estate bounced back in Canada last year.

The market recorded its strongest performance in three years - measuring 11.1% on the REALpac/IPD Canada Annual Property Index. This result came after a negative return in 2009 of -0.3%, and 2008's figure of 3.7%. Last year's annual total return was boosted by 4% capital growth and an income return of 6.5%.

The index measured directly held commercial real estate of 97 billion Canadian dollars (£60 billion) at the end of last year. Simon Fairchild, managing director of IPD North America, said: "A rebound in property values was entirely responsible for boosting the total return back into double-digit territory in 2010.

"The return to capital growth last year follows two consecutive years of write-downs worth 9.3% at the all property level." Retail's total return of 15.6% made it the top sector. This was followed by Industrial at 8.8%, Offices at 8.5% and Residential at 7.6%.

Source: Press Association