Canadian commercial real estate posted an average return for investors of 13.1 per cent during the first quarter of this year, according to the REALpac/IPD Canada Annual Property Index.
Over the past 12 months, real estate outperformed public equities, at 5.9 per cent; bonds at 4 per cent, and inflation, at 1 per cent, the index shows. And, since 2000, the year ending March 31, 2013 posted the sixth highest annual return, according to Simon Fairchild, IPD managing director.
The total returns varied between six Canadian cities surveyed for the index. The biggest average returns on real estate were in Calgary, up 17.4 per cent and Edmonton, up 17.1 per cent. In descending order, other cities were: Toronto, up 13 per cent; Montreal, 11.8 per cent; Vancouver, 10.6 per cent; and Ottawa, up 10.9 per cent.
The IPD Index tracks 2,200 properties valued at $107 billion.
