Stronger corporate profit enabled nonresidential markets to recover from recessionary declines.
New York, NY (PRWEB) July 26, 2014
The Real Estate Asset Management and Consulting industry comprises companies that provide services to corporations and individuals in real estate markets. Industry operators provide transactional services, such as escrow and tenant representation. They also generate data and analysis on local and regional markets, as well as provide consulting and advisory services to property owners, managers, investors and developers; this includes advice on market valuation, property taxes and property management.
Over the past five years, the industry has recorded slow growth as construction activity has recovered from recessionary lulls. Nonresidential markets were quick to improve following a sharp contraction in construction, which helped boost industry revenue. This was primarily caused by stronger corporate profit, relatively low interest rates and greater access to credit. Additionally, the value of nonresidential construction improved as the federal government increased expenditure and investment in the form of stimulus packages. The industry also improved as rising consumer confidence caused spending to increase and, therefore, injected the residential construction market with new vitality. Growth was strong during 2010 and 2011; however, it has fallen more recently due to fears over a potential property bubble. The International Monetary Fund identified Canada's house price-to-rent and house price-to-income ratios as dangerously high, and this has limited growth toward the end of the five-year period. Overall, industry revenue is expected to rise at an average annual rate over the five years to 2014, including anticipated growth in 2014.
The Real Estate Asset Management and Consulting industry exhibits a very low level of market share concentration. Industry growth is forecast to accelerate over the next five years due to more stable economic conditions. Corporate profit across all industries in Canada is projected to grow, which will cause operators to see an uptick in demand from their largest market, the corporate sector. Additionally, stronger consumer confidence will help boost residential construction, though, ongoing fears of a property bubble have the potential to derail industry growth. Nonetheless, since the industry provides services on market valuation and property management, uncertainty may deliver increased business for consulting firms. Overall, the industry is forecast to grow at an average annual rate over the five years to 2019.
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IBISWorld industry Report Key Topics
This Real Estate Asset Management and Consulting industry provides real estate-related services, including escrow, fiduciary, consultancy, research, listings, tenant representation and other miscellaneous activities. The industry does not include real estate agent and broker offices, real estate lessors, real estate property managers or real estate appraiser offices.
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