5 Emerging Trends in Canadian Real Estate in 2025

PwC Canada and Urban Land Institute’s (ULI) Emerging Trends in Real Estate (ETRE) is now out and it predicts "slow growth improvement and, two years out, tremendous growth." Here are the 5 key trends the report has highlighted as opportunity for investors in the Canadian Real Estate:

Shifting Investment Focus: Investors are targeting distressed properties and exploring alternative financing methods, such as mezzanine financing and subordinate debt, to navigate capital constraints.

Generative AI Integration: The adoption of generative AI is streamlining tasks like architectural design and market analysis, enhancing efficiency and innovation in the real estate sector.

Regional Market Variations: Diverse economic conditions across provinces are leading to varied real estate trends, with some regions experiencing growth while others face challenges.

Affordable Housing Initiatives: There's a growing emphasis on developing affordable housing to address the affordability crisis, with both public and private sectors collaborating on solutions.

Sustainability and ESG Prioritization: Environmental, Social, and Governance (ESG) considerations are becoming central, influencing investment decisions and development practices toward sustainability.

Source: Storeys.com, PwC Canada

OUR TAKE

In our opinion, these trends point to a mixed impact on consumers. While technological advancements, affordable housing initiatives, and sustainability efforts offer tangible benefits, challenges like increased competition for distressed properties and regional disparities may create barriers for some buyers and renters. Consumers will need to stay informed, adaptable, and strategic to navigate this evolving landscape effectively. Having said that, the report is worth a read and provides some key insights that could dictate the future of Canadian real estate landscape.

Market Revival for Ski Homes in 2025

A recent Royal LePage report highlights growing optimism in Canada's top ski destinations, driven by recent interest rate cuts. The report forecasts a 7.5% increase in the median price of single-family detached homes in these regions over the next year. Phil Soper, President and CEO of Royal LePage, notes, "This is a testament to the resilience of the winter recreational segment, even under the pressure of the 2023-2024 high interest rate environment."

The report also indicates that the median price and sales data for 18 popular ski regions across Canada remained essentially stable between January 1, 2024, and September 30, 2024, compared to the same period in 2023. This stability suggests that the market is well-positioned to benefit from the recent interest rate cuts, with potential for increased activity and price growth in 2025.

Overall, the combination of lower interest rates and the inherent appeal of Canada's ski destinations is expected to drive demand and price appreciation in these markets in the coming year.

Source: Cision, Royal LePage

OUR TAKE

We believe it's a welcoming sign for many of these key markets that have seen falling demand over the last couple of years. In 2025, these property markets are well-positioned for growth, supported by falling interest rates and renewed buyer confidence. While top-tier destinations will likely see steady price increases, emerging regions may experience sharper growth as buyers seek affordability and investment opportunities. However, external factors such as regulatory changes and broader economic conditions will remain key variables to watch.

Luxury Real Estate Headlines: Third Week in November, 2024

A mid-century bungalow built for U.S. Army staff stationed in post-war Berlin is now on the market?

Personal Retreat of Renowned Architect John Portman Lists in Georgia for $40M – The Wall Street Journal

It’s No ‘Two Buck Chuck.’ California Winery Where Brand Charles Shaw Got Its Start Lists for $35M?– Mansion Global

This $25M Flatiron Penthouse Features a Gold Dome – Bloomberg

Kiefer Sutherland’s Former NYC Townhouse Renovated Impeccably by Steven Gambrel Lists for $20.5M – Cottages & Gardens

A Piece of American Architecture in Berlin, Built for U.S.

Source: Sotheby's International Realty

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