PROPERTY PRICE INDEX (last update August 2003)

The following data measures the return on investment in real estate in Canada over time.  The data is the ICREIM/IPD Canadian Property Index.  The index is compiled from valuation and management records for individual buildings.  As of the end of 2002, the data was comprised from 16 pension funds, life insurance companies and real estate managers contributing information on properties worth Can $ 45.20 bn, (which represents about 50% of institutional holdings and publicly listed vehicles). Because of nuances in the calculation of these indexes the data is presented only for the purpose of providing a general description of trends in real estate.  As well local trends may be different, as may the experiences associated with any single property, in particular smaller properties which are not covered by this index.

Annual Capital Growth %

This table measures the growth/decline in value of various catergories of real estate, from one year to the next, commencing 1988.  For example the data for 2002, shows how property value changed from the end of the year 2001. 

 

Year	Retail	Office	Industrial	Multi-Unit Residential
1988	6.8	8.5	10.8	3.7
1989	10.0	9.4	7.9	15.0
1990	-3.2	-2.6	-2.9	2.0
1991	-4.1	-6.9	-4.5	-2.8
1992	-5.9	-12.9	-11.0	-3.3
1993	-4.6	-17.1	-9.3	-5.2
1994	1.1	-10.6	-2.4	4.9
1995	0.9	-6.7	-1.7	2.7
1996	-1.2	-3.2	-0.6	10.1
1997	2.6	14.2	5.7	10.4
1998	4.4	8.9	3.9	4.7
1999	0.7	3.1	2.7	4.3
2000	2.0	3.9	3.9	2.2
2001	-0.8	1.0	1.4	4.7
2002	1.8	-2.1	0.9	2.4
2003	3.1	-2.7	2.2	-3.6

ANNUAL CAPITAL GROWTH (%)

Total Capital Growth

This table measures the growth/decline in value of various catergories of real estate, by comparision to values in 1987, in the form of an index.  An index value of 100, means that the property in that catergory had the same value as in 1987, 110 would mean that the property had a value 10% greater than in 1987. 

 

Year	Retail	Office	Industrial	Multi-Unit Residential
1987	100	100	100	100
1988	107	108	111	104
1989	117	119	120	119
1990	114	116	116	122
1991	109	108	111	118
1992	103	94	99	114
1993	98	78	90	108
1994	99	70	87	114
1995	100	65	86	117
1996	99	63	85	129
1997	101	72	90	142
1998	106	78	94	149
1999	106	81	96	155
2000	109	84	100	158
2001	108	85	102	166
2002	110	83	102	170
2003	113	80	105	164

          TOTAL CAPITAL GROWTH INDEX (1987=100)

Income Return %

This table measures the income earned by a property, from year to year, based on the value of the property as of the beginning of the year.
 

Year	Retail	Office	Industrial	Multi-Unit Residential
1988	9.0	7.5	8.2	8.3
1989	8.2	7.3	8.1	6.6
1990	7.5	6.8	7.5	6.5
1991	7.6	7.1	8.0	7.1
1992	7.8	6.7	7.7	7.0
1993	7.9	7.1	8.6	7.1
1994	8.3	8.7	9.3	8.5
1995	8.5	8.8	9.5	9.3
1996	9.0	9.3	9.9	8.8
1997	9.0	9.2	9.5	7.9
1998	8.9	8.5	9.6	7.9
1999	7.9	8.1	9.6	7.9
2000	9.0	9.9	9.9	8.1
2001	8.8	8.6	9.7	7.8
2002	9.3	8.7	10.2	7.5
2003	9.1	8.2	9.6	7.9

This table measures the accrued return from both income and capital growth over time, with 1987 as the base year

Year	Retail	Office	Industrial	Multi-Unit Residential
1987	100	100	100	100
1988	116	116	120	112
1989	138	137	139	137
1990	144	142	146	149
1991	148	142	150	155
1992	151	132	144	161
1993	155	118	143	163
1994	170	115	152	186
1995	186	117	164	209
1996	200	123	179	249
1997	224	154	207	296
1998	254	181	236	334
1999	276	202	265	376
2000	307	228	302	415
2001	332	250	335	467
2002	369	266	372	513
2003	414	281	415	526