Canada Real Estate Market Report and Forecast 2025-2034

Canada Real Estate Market Report and Forecast 2025-2034

Market Outlook

According to the report by Expert Market Research (EMR), the Canada real estate market size witnessed a healthy growth in 2024. Aided by the rising demand for suburban and rural properties due to remote work trends and increasing interest in sustainable, energy-efficient homes, the market is projected to grow at a CAGR of 2.90% between 2025 and 2034.

The Canada real estate market growth is being driven by shifting economic conditions, population growth, and changing consumer preferences. The demand for residential, commercial, and industrial properties remains strong, with key metropolitan areas experiencing sustained growth. The rising urbanisation trend, coupled with increasing investments in infrastructure development, has contributed to the market growth. As affordability remains a concern in major cities, government policies and market dynamics are influencing housing supply, mortgage rates, and investment opportunities. The increasing appeal of suburban and secondary markets has also reshaped the real estate landscape, creating new avenues for growth and development.

As per the Canada real estate market analysis, the residential real estate segment is witnessing a shift in consumer preferences, with homebuyers and investors focusing on properties that offer a balance between affordability, location, and lifestyle amenities. The demand for condominiums, townhouses, and single-family homes remains robust, especially in urban centres such as Toronto, Vancouver, and Montreal. The rise of remote work and flexible working arrangements has further fuelled interest in suburban and rural housing, where buyers seek larger living spaces and access to green areas. The availability of low-interest mortgage rates has played a significant role in supporting homeownership, although rising borrowing costs and inflationary pressures are impacting purchasing power.

The commercial real estate sector continues to adapt to evolving Canada real estate market trends, with demand fluctuating across office, retail, and industrial segments. The office space market is undergoing a transformation as businesses reassess their workspace needs in response to the hybrid work model. While prime office locations in major business districts maintain their value, the demand for flexible workspaces, co-working facilities, and suburban office developments is increasing. The retail real estate sector is also experiencing a shift, with e-commerce growth reshaping traditional brick-and-mortar retail spaces. Retailers are focusing on experiential shopping environments, mixed-use developments, and last-mile distribution centres to align with changing consumer behaviour.

The industrial real estate market remains one of the most resilient segments in the Canada real estate market, driven by the expansion of e-commerce, logistics, and supply chain networks. The demand for warehouses, distribution centres, and fulfilment facilities has surged as businesses seek to optimise their logistics operations and meet the growing demand for online shopping. The rise of automation and smart warehouse technologies is further shaping the industrial real estate landscape, with investors increasingly targeting high-tech logistics hubs and strategically located industrial properties. The growing emphasis on sustainability and energy efficiency in industrial real estate is also driving investments in green building initiatives and environmentally friendly infrastructure.

Government policies and regulatory frameworks play a crucial role in shaping the Canada real estate market dynamics. Housing affordability remains a key concern, prompting authorities to introduce measures aimed at increasing housing supply, controlling speculation, and supporting first-time homebuyers. Initiatives such as tax incentives, mortgage stress tests, and zoning reforms are being implemented to ensure a balanced and sustainable housing market. Additionally, foreign investment regulations and property taxation policies continue to influence market dynamics as policymakers strive to maintain housing accessibility while ensuring stability in the real estate sector.

Technological advancements and digital transformation are reshaping the Canada real estate market landscape. The adoption of proptech solutions, virtual property tours, and blockchain-based transactions is enhancing efficiency, transparency, and accessibility in the market. Real estate developers and investors are leveraging data analytics and artificial intelligence to make informed decisions, identify emerging trends, and optimise property management strategies. The integration of smart home technologies and sustainable building practices is also gaining traction as buyers and investors prioritise energy efficiency, environmental impact, and long-term cost savings.

In the Canada real estate market, the luxury real estate market continues to thrive, with high-net-worth individuals and international investors showing interest in premium properties located in prime urban and waterfront locations. The demand for high-end condominiums, penthouses, and luxury estates remains strong, driven by lifestyle preferences, economic stability, and the appeal of Canada as a safe and attractive destination for real estate investment. The growing interest in sustainable luxury properties, eco-friendly designs, and smart home features is influencing the development of upscale residential projects catering to affluent buyers.

The rental market is also experiencing dynamic changes in the Canada real estate market, with demand for rental properties increasing due to population growth, immigration, and shifting economic conditions. Urban rental markets are witnessing steady demand, particularly in cities with strong employment opportunities and educational institutions. The rise of purpose-built rental developments, co-living spaces, and short-term rental platforms is diversifying the rental market landscape, offering tenants a variety of housing options. Rental price trends, vacancy rates, and government rent control policies continue to impact the supply and demand dynamics in the rental housing sector.

Despite the positive outlook, challenges such as economic uncertainties, interest rate fluctuations, and construction costs remain key considerations for the leading Canada real estate market players. Market volatility, global economic trends, and geopolitical factors can influence investor sentiment and property values. The increasing focus on sustainable development, affordable housing solutions, and innovative real estate financing models will be critical in addressing the evolving needs of the market.

The continued expansion of the Canada real estate market is driven by urbanisation, technological advancements, and shifting consumer preferences. As cities grow and new investment opportunities emerge, the market is poised for sustained development supported by strategic policy interventions, infrastructure investments, and evolving real estate trends. With a focus on sustainability, affordability, and innovation, the market remains a cornerstone of economic growth, offering opportunities for buyers, investors, and developers across various segments of the market.

Market Segmentation

The market can be divided based on property, type, and region.

Market Breakup by Property

• Residential
• Commercial
• Industrial

Market Breakup by Type

• Sales
• Rental/Lease

Market Breakup by Region

• British Columbia
• Alberta
• The Prairies
• Central Canada
• Atlantic Canada

Competitive Landscape

The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the Canada real estate market. Some of the major players explored in the report by Expert Market Research are as follows:

• Living Realty Inc.
• Brookfield Corp.
• Polygon Realty Limited
• Century 21 Canada Limited
• Bosa Properties Inc.
• Aquilini Development
• AMACON
• Concert Properties Ltd.
• Jones Lang LaSalle (JLL) Inc.
• CAPREIT
• Slavens & Associates Real Estate Inc.
• Others

About Us

Acquire unparalleled access to critical industry insights with our comprehensive market research reports, meticulously prepared by a team of seasoned experts. These reports are designed to equip decision-makers with an in-depth understanding of prevailing market trends, competitive landscapes, and growth opportunities.

Our high-quality, data-driven analysis provides the essential framework for organisations seeking to make informed and strategic decisions in an increasingly complex and rapidly evolving business environment. By investing in our market research reports, you can ensure your organisation remains agile, proactive, and poised for success in today's competitive market.

Don't miss the opportunity to elevate your business intelligence and strengthen your strategic planning. Secure your organisation's future success by acquiring one of our Expert Market Research reports today.

*We at Expert Market Research always strive to provide you with the latest information. The numbers in the article are only indicative and may be different from the actual report.