Value-Add Investing in Canadian Real Estate

Canadian real estate provides domestic and foreign investors with attractive long-term returns, low volatility and high transparency. Canada also offers a diverse economy with a stable, sophisticated and well-regulated banking and lending environment, all of which are beneficial to real estate investing.

Private real estate in Canada has generated attractive absolute and relative returns over short, medium and long time horizons and it is expected to continue to do so over the long term. 

This backdrop is favourable to both core and value-add investing strategies. LaSalle published a report on core real estate investing (Investing in Canadian Real Estate, January 2017) and in this paper we turn our attention to value-add investing. This report starts with an overview of the benefits of investing in Canadian real estate, followed by value-add strategies that are attractive in the current environment.