“Canadian real estate companies are closely monitoring catalysts like declining interest rates, government policy changes and business model reinvention to reinvigorate investment and development. At the same time, they are exploring new technologies such as GenAI to enable productivity improvements,” said Fred Cassano, Partner, National Real Estate Leader, PwC Canada. “The use of generative AI in the real estate sector though still evolving, offers significant competitive advantages.”
While the use of technology is a clear benefit for making real estate more efficient and for monitoring market trends, for investors the asset classes that they consider are informed by fundamental basics – what’s selling and what isn’t.
The report shows that investors are looking beyond traditional favourites that are slowing down in markets such as Toronto and Vancouver, and instead eying opportunities in emerging asset classes such as data centres, cold storage facilities and student housing.
These investments and others that blend real estate and infrastructure are appealing to investors and can bring significant value, along with other niches including those in digital connectivity (i.e. GenAI) and sustainable energy.
Whatever assets are added to real estate portfolios though, there is a strong focus on sustainability and values will be scrutinized by investors for inclusion of climate resilience, insurance, and factors such as energy efficiency.