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CA Real estate industry revenue rose 5 percent in 2011

Property Here - Monday, March 18, 2013

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A new report from Statistics Canada says that total operating revenue for the real estate agents and brokers industry grew to $10.3 billion in 2011, up five per cent from 2010. The industry reported operating expenses of $7.9 billion, an increase of 5.1 per cent from the previous year. As a result, the overall operating profit margin remained steady at 23.4 per cent, says Statistics Canada.

The province of Ontario is the largest real estate market in Canada and accounted for 49.1 per cent of total operating revenues earned by real estate agents and brokers. British Columbia followed at 18 per cent, while Quebec’s share was 13.3 per cent and Alberta’s share stood at 12.2 per cent.

The report says real estate appraisers reported a 2.6-per-cent increase in total operating revenue to $716.8 million in 2011. Concurrently, operating expenses grew by 1.9 per cent to $562.1 million. The overall operating profit margin increased to 21.6 per cent from 21.0 per cent in 2010, says Statistics Canada.

It says, “Typically, labour costs comprise the largest expense for the industry. In 2011, the commissions paid to non-employees accounted for 46.9 per cent of operating expenses, followed distantly by salaries and wages.”