CETANA PROOF - Flipbook - Page 53
C H A L L E NGE
Financing & Attracting Investors
Market Conditions & High Risk:
According to Deloitte’s January 2023 Quarterly Economic Outlook
Report, the economic outlook remains uncertain. The biggest
risk is that past interest rate increases may be more impactful
than anticipated, leading to a deeper and more protracted global
downturn. While a recession has been expected in the eurozone
for months, the downgraded outlook for the US is impacting the
Canadian outlook given our trade dependence. These market
conditions translate to risk intolerance. Unfortunately, property
development is often considered a high-risk investment, as it
involves a substantial amount of capital, long lead times, and
uncertain returns. The property market can be volatile, subject
to fluctuations in supply and demand, and there is always the
risk that the development project may not succeed. A highrisk endeavor combined with a downturn in the market makes it
especially difficult to attract investors.
High Property Prices:
According to the Chartered Professional Accountants of Canada,
after setting sales records across the country in 2020, demand
in 2021 continued to outstrip the supply of available properties,
which drove up prices. According to the government’s December
DELOITTE’S
JANUARY 2023
QUARTERLY
ECONOMIC OUTLOOK
REPORT
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