Real Estate - Canada

Canada

The Real Estate market market in Canada is expected to reach a value of €7.77tn in 2024.
Among the various segments, Residential Real Estate holds the largest share, projected to reach a market volume of €6.01tn in the same year.
This segment is anticipated to grow at an annual rate of 3.57% from 2024 to 2029, resulting in a market volume of €9.26tn by 2029.
In terms of global comparison, United States is expected to generate the highest value in the Real Estate market market, reaching €121.2tn in 2024.
Canada's real estate market is experiencing a surge in demand and rising prices, driven by low interest rates and a strong influx of foreign buyers.

Key regions: United States, China, Japan, Germany, United Kingdom

Mercado

Región

Comparación de regiones

Moneda

Analyst Opinion

The Real Estate market in Canada has been experiencing significant growth and development in recent years.

Customer preferences: One of the main customer preferences driving the Real Estate market in Canada is the desire for homeownership. Canadians place a high value on owning their own homes, and this has led to a strong demand for residential properties across the country. Additionally, there is a growing trend towards sustainable and energy-efficient homes, with many buyers seeking properties that are environmentally friendly and have low energy consumption.

Trends in the market: One of the key trends in the Canadian Real Estate market is the increasing prices of properties. This trend can be attributed to several factors, including low interest rates, population growth, and limited housing supply in certain regions. As a result, the market has become highly competitive, with bidding wars becoming more common and properties often selling above asking price. Another trend is the rise of condominium living, particularly in urban areas. Many Canadians, especially young professionals and empty nesters, are opting for the convenience and amenities offered by condominiums.

Local special circumstances: There are several local special circumstances that are impacting the Real Estate market in Canada. One of these is the regional variations in housing prices. While some cities, such as Toronto and Vancouver, have seen significant price increases, other regions have experienced more moderate growth. This can be attributed to factors such as job opportunities, population growth, and local economic conditions. Additionally, government policies and regulations, such as foreign buyer taxes and mortgage stress tests, have also had an impact on the market dynamics in certain areas.

Underlying macroeconomic factors: Several underlying macroeconomic factors are contributing to the development of the Real Estate market in Canada. One of these is the low interest rate environment. With interest rates at historic lows, borrowing costs for homebuyers have remained affordable, which has fueled demand for properties. Additionally, population growth, both through natural increase and immigration, has increased the demand for housing. This, coupled with limited housing supply in certain regions, has put upward pressure on prices. Lastly, the stability of the Canadian economy and its strong job market have also played a role in attracting buyers and investors to the Real Estate market.

Methodology

Data coverage:

Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.