Every year, the two firms PwC and the Urban Land Institute, jointly conduct a survey among private property owners, real estate firms, investment managers, banks, homebuilders, land developers and mortgage investors to determine their views on the real estate industry, then publish the results in their annual publication Emerging Trends in Real Estate, generally considered to be the most widely read forecast report in the industry.
One of the questions posed in the survey is a question on everyone’s mind these days: How long can Canada’s real estate market continue to grow? Survey respondents pointed to several factors influencing their thinking:
- The stronger U.S. dollar
- Lower oil prices
- Foreign investment
- Housing affordability concerns
- The rising trend of permanent renters
These factors are leading to the following trends in the Montreal area:
- Major infrastructure spending is a bonus for the construction sector.
- Lower energy prices and a lower Canadian dollar will benefit local manufacturers.
- Montreal’s suburban population is falling as the younger generations embrace urban living.
- Condo development will slow down.
Outlook for Montreal: The survey respondents generally feel that Montreal’s economy will show stable but relatively low growth.