IMARC Group has recently released a new research study titled “Canada Real Estate Market Report by Property Type (Residential Buildings and Dwellings, Commercial Complexes, Industrial Infrastructure, Government Infrastructure), Business (Sales, Rental, Lease), and Region 2025-2033,” which offers a detailed analysis of the market drivers, segmentation, growth opportunities, trends, and competitive landscape to understand the current and future market scenarios.
Canada Real Estate Market Overview
The Canada real estate market size reached USD 183.8 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 231.5 Billion by 2033, exhibiting a growth rate (CAGR) of 2.60% during 2025-2033.
Market Size and Growth
Base Year: 2024
Forecast Years: 2025-2033
Historical Years: 2019-2024
Market Size in 2024: USD 183.8 Billion
Market Forecast in 2033: USD 231.5 Billion
Market Growth Rate 2025-2033: 2.60%
Request for a sample copy of the report: https://www.imarcgroup.com/canada-real-estate-market/requestsample
Key Market Highlights:
✔️ Strong market activity driven by population growth and urban development in major cities
✔️ Increasing demand for affordable housing and sustainable building practices
✔️ Expanding investments in smart infrastructure and mixed-use developments across residential and commercial sectors
Canada Real Estate Market Trends
In 2024, the Canada real estate market faced one of its toughest years in recent memory. With the Bank of Canada raising its benchmark interest rate to 5.0%, borrowing became more expensive, and qualifying for mortgages turned into a major hurdle for many, especially first-time buyers. Stricter stress tests left nearly one in three potential buyers unable to enter the market, leaving room for larger investors to step in. Home sales slowed noticeably, with the average listing staying on the market for about 45 days, compared to just 18 days in 2022. To attract buyers, some sellers even offered vendor take-back mortgages, highlighting how affordability and financing continue to shape current market conditions.
Rental Demand Outpacing Supply
As buying a home became harder, the rental market saw record demand. Vacancy rates in major cities like Toronto and Vancouver dropped below 1%, leading to fierce competition for rental units. At the same time, more than 60,000 housing projects were either delayed or canceled due to rising construction costs, worsening the supply crunch. Interestingly, while affordability challenges weighed on the broader market, the luxury segment remained strong. High-end properties—such as penthouses, waterfront homes, and resort estates—rose in value by nearly 12%, supported by wealthy Canadians and international buyers. This contrast underscores the uneven nature of demand in the Canada real estate market.
Policies, Immigration, and Market Share
Government policies are having a direct impact on the Canada real estate market share. The federal ban on foreign buyers was extended until 2026, while provinces introduced their own initiatives. British Columbia launched its Homes for People program to boost multi-unit housing, Ontario expanded its land speculation tax, and Calgary accelerated approvals for new developments. Immigration is another powerful driver: with nearly 500,000 newcomers arriving in 2024, both rental and ownership demand rose sharply. Quebec responded by investing $1.2 billion in modular housing, cutting construction times by up to 40% and providing much-needed relief for supply constraints.
Affordability and New Housing Models
Housing affordability remains the biggest concern in the Canada real estate market outlook. On average, Canadians are spending about 62% of their income on housing, far above the recommended 30%. To cope, many households are exploring alternatives like co-ownership among friends, intergenerational living, and family-backed purchases. These new models reflect a cultural and financial adjustment to high housing costs. Meanwhile, in the commercial sector, office vacancies remain high at nearly 18%, encouraging cities to convert office spaces into residential units. Climate risks are also influencing decisions, with areas like the Fraser Valley seeing households relocate due to flood risks and rising insurance costs.
Canada Real Estate Market Outlook
Looking ahead, the Canada real estate market is showing a mixed picture. Affordability challenges and stalled construction continue to weigh on everyday buyers, while the rental and luxury segments remain resilient. Developers such as Brookfield Asset Management, Tridel, and Mattamy Homes, along with major brokerages like RE/MAX Canada and Royal LePage, are expected to continue shaping the overall Canada real estate market share. The future will depend on how well the industry addresses affordability, labor shortages, and climate resilience. Despite the challenges, the long-term Canada real estate market outlook points to steady growth, with innovation and policy reforms playing a central role.
Canada Real Estate Market Segmentation:
The market report segments the market based on product type, distribution channel, and region:
Breakup by Property Type:
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Residential Buildings and Dwellings
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Commercial Complexes
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Industrial Infrastructure
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Government Infrastructure
Breakup by Business:
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Sales
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Rental
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Lease
Breakup by Region:
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Ontario
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Quebec
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Alberta
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British Columbia
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Others
Ask Analyst & Browse Full Report with TOC & List of Figures: https://www.imarcgroup.com/request?type=report&id=25484&flag=C
Competitive Landscape:
The market research report offers an in-depth analysis of the competitive landscape, covering market structure, key player positioning, top winning strategies, a competitive dashboard, and a company evaluation quadrant. Additionally, detailed profiles of all major companies are included.
Key Highlights of the Report
1. Market Performance (2019-2024)
2. Market Outlook (2025-2033)
3. COVID-19 Impact on the Market
4. Porter’s Five Forces Analysis
5. Strategic Recommendations
6. Historical, Current and Future Market Trends
7. Market Drivers and Success Factors
8. SWOT Analysis
9. Structure of the Market
10. Value Chain Analysis
11. Comprehensive Mapping of the Competitive Landscape
About Us:
IMARC Group is a leading market research company that offers management strategy and market research worldwide. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses.
IMARC’s information products include major market, scientific, economic and technological developments for business leaders in pharmaceutical, industrial, and high technology organizations. Market forecasts and industry analysis for biotechnology, advanced materials, pharmaceuticals, food and beverage, travel and tourism, nanotechnology and novel processing methods are at the top of the company’s expertise.
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