a press release<\/a>.<\/p>\n\u201cAfter the highly disruptive year in 2020, we\u2019re seeing renewed demand and competition for Canadian real estate, which is building momentum for a strong and well-capitalized 2022,\u201d he added.<\/p>\n
With the pandemic dominating most of 2020, many lenders were hesitant to make real estate deals. However, \u201cincreased clarity in the market\u201d has prompted lending conditions to return to normal, with 90 per cent of lenders planning to \u201cactively\u201d or “very actively\u201d bid on deals over the next 12 months.<\/p>\n
This renewed bullishness from investors would translate into 10 per cent to 20 per cent of additional net new capital available for Canadian real estate next year. Approximately one in two lenders plan to materially increase their loan books by releasing 20 per cent to 30 per cent net new capital in the year ahead. Looking into the future, this means that borrowers can anticipate stronger capital availability for their real estate financing needs in 2022, CBRE said.<\/p>\n
Retail is the hottest<\/h4>\n
Lender sentiments improved the most within the retail sector, particularly around entertainment and food services, CBD regional malls and power centres. However, asset concerns around regional malls in secondary markets, Class B offices in core and suburban markets are still prominent.<\/p>\n
Single-family housing, apartment buildings and grocery-anchored retail were among the property types that lenders were the least concerned about. Apartments were especially in favour for lenders this year, with nearly half coming in above budget.<\/p>\n
\u201cLooking ahead, lender demand for apartments are only going to get stronger in 2022 with 75 per cent planning to further increase their budgets next year,\u201d said the report.<\/p>\n
Canada\u2019s biggest cities have and will continue to draw lender financing into the real estate market. CBRE noted that lender appetite for Canadian real estate markets were stronger than 2020 and 2019 in some areas. The Greater Toronto Area, Vancouver, Montreal, Ottawa and the Waterloo region continue to attract the strongest desire for lending in the country. Despite headwinds over the last couple of years, lenders also continue to be active in Alberta, namely Calgary and Edmonton, with about 80 per cent willing to transact in the region.<\/p>\n
\u201cThis proportion of lenders is in fact comparable to other markets \u2013 the willingness of lenders to transact in Montreal, Vancouver and Ottawa fall in the range of 80 per cent to 83 per cent of lenders,\u201d said CBRE.<\/p>\n
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<\/a>Photo:\u00a0Reimar<\/a>\u00a0\/ Adobe Stock<\/em><\/p>\n