On May 28, Benoit Egan, Partner in charge of Raymond Chabot Grant Thornton’s Real Estate Consulting Group, addressed more than 100 guests at a luncheon meeting held at the Club St-James on the status of the real estate market in Greater Montreal.
This event was organized by the Risk Management Association (RMA), Montreal Chapter, an association grouping financial services institutions and professionals whose objective is to perfect an overall understanding of credit risk identification and management. This chapter is part of a worldwide organization headquartered in Philadelphia that has approximately 2,500 institutional members represented by some 16,000 risk management professionals.
For almost 45 minutes, Raymond Chabot Grant Thornton’s specialist painted a picture of the status of Montreal real estate, expounding on the prospects for developing the various asset categories that are found in the Greater Montreal region.
According to the expert, several conclusions can be drawn from the current situation and the anticipated prospects for development:
- An increase in Montreal’s economic growth in a context characterized by:
- An end to major institutional projects in the medium term;
- A slowdown in the condominium sector;
- Stability in real estate yields through an arbitrage of real estate premiums;
- High construction costs calling for innovative approaches to any new development;
- The need to closely monitor household debt, without it being a brake on development as it has been in other cities;
- An increase in the value of real estate assets to be achieved only through an increase in revenue and not by additional decreases in rates of return.
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13 Jun 2014 | Written by :