Canada Condominiums and Apartments Market Size (2024 - 2029)

The Canada Condominiums and Apartments Market is experiencing significant growth, driven by the increasing demand for affordable housing and the interest of first-time buyers in various property types. The market size is influenced by the rising popularity of condominiums in major urban and suburban areas, where buyers are seeking more affordable home ownership options. Despite challenges such as rising interest rates and shifting market conditions, the market has reached a balanced state, offering opportunities for buyers and sellers to meet their goals. The availability of diverse condominium products and favorable market conditions contribute to the market's expansion, as buyers navigate through a more negotiable and balanced environment.

Market Size of Canada Condominiums and Apartments Industry

Canada Condominiums and Apartments Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 8.00 %
Market Concentration Low

Major Players

Canada Condominiums and Apartments Market Major Players

*Disclaimer: Major Players sorted in no particular order

Canada Condominiums and Apartments Market Analysis

The Canada Condominiums and Apartments Market is currently valued at around USD 100 billion and is anticipated to register a CAGR of more than 8% during the forecast period. The rising demand for affordable housing is driving the market. Furthermore, the market is propelled by first-time buyers looking for different types of properties in the country.

  • Condominium market share increased in major urban areas across the country this year, reflecting new market realities and the changing path of entry-level buyers. Condominium sales fell in four markets in the first eight months of 2022: Greater Vancouver/Fraser Valley, Greater Toronto, Ottawa, and Nova Scotia, while Calgary and Edmonton saw double-digit sales increases over the same period in 2021. Condo values are up year over year in almost all markets, with many boosted by a strong first quarter of 2022. The key issue in today's housing market is affordability. Rising interest rates gradually eroded purchasing power, and despite lower housing values and cooling market conditions, purchasing a home is now more difficult than ever.
  • Given sharp double-digit increases in rental rates across the major markets, particularly in BC and Ontario, the cost of carrying a mortgage versus renting is now more comparable for those who adjusted expectations with each rate hike. As a result, while there were fewer sales in 2022, condominiums accounted for a higher proportion of total sales, as buyers sought more affordable options to achieve home ownership. In most major urban areas, condominium prices remained stable or increased yearly. Overall, conditions are balanced, so buyers and sellers with realistic expectations should be able to meet their goals. Buyers can take a breather in Canada's active condominium market for the most part, as the heated momentum of recent years cooled with inflationary pressures, shifting conditions into more balanced territory. This equilibrium created a once-in-a-lifetime opportunity for those willing and able to act. It ranges from first-time buyers looking to establish a foothold in the market to move-up buyers and empty nesters. It is being seen all over the place.
  • Condominiums in suburban areas are the most popular among today's buyers. Over the last eight months, areas such as Saddle Ridge, Panorama Hills, Currie Barracks, and McKenzie Town saw strong demand, with condominium apartment sales doubling year on year. Saddle Ridge, Panorama Hills, Currie Barracks, Garrison Woods, and Killarney/Glengary increased double-digit values. However, as people continued to work from home, the demand for condominium apartments in the city's downtown core remained lukewarm. It changed in the following months as more people returned to work in the downtown core. Out-of-province buyers from British Columbia and Ontario continued to pour into Calgary and invest in the city's housing stock.
  • While buyers are aware of the Bank of Canada's interest rate increase, they are also acutely aware of market conditions changing. The transition from a seller's market to a more balanced environment gave many buyers plenty of breathing room. It is at a time when there is a good selection of condominium products available in various price points and neighborhoods, sellers are more willing to negotiate, and overall market conditions are favorable. Three months' worth of inventory is currently available for sale, and sellers discovered that days on the market are increasing. Most buyers believe the worst is over, and with some minor adjustments on the way, volatility should be kept to a minimum.

Canada Condominiums and Apartments Industry Segmentation

An apartment is a private residence in a building or house divided into several separate dwellings. A condominium (or a "condo") is a large property complex comprising individual units owned separately. Typically, ownership includes a nonexclusive interest in certain "community property" managed by the condominium management. The report covers a complete background analysis of the Canada Condominiums and Apartments Market. It includes the assessment of the economy and the contribution of sectors in the economy, market overview, market size estimation for key segments, emerging trends in the market segments, market dynamics and geographical trends, and COVID-19 impact.

The Canada Condominiums and Apartments Market is segmented by city (Toronto, Montreal, Vancouver, Ottawa, Calgary, Hamilton, and other cities). The report offers market size and forecasts in value (USD billion) for all the above segments.

By City
Toronto
Montreal
Vancouver
Ottawa
Cagalry
Hamilton
Other Cities
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Canada Condominiums and Apartments Market Size Summary

The Canada condominiums and apartments market is experiencing significant growth, driven by increasing demand for affordable housing and a shift in buyer demographics. The market is characterized by a rising interest from first-time buyers seeking diverse property options across the country. Urban areas have seen a notable increase in condominium market share, reflecting new market dynamics and the evolving preferences of entry-level buyers. Despite some declines in sales in major markets like Greater Vancouver and Greater Toronto, other regions such as Calgary and Edmonton have witnessed substantial sales increases. The market's affordability challenge, exacerbated by rising interest rates, has led to a greater proportion of condominium sales as buyers opt for more cost-effective homeownership solutions. This shift has created a balanced market environment, offering opportunities for both first-time and move-up buyers.

The demand for condominiums, particularly in suburban areas, has surged, with significant interest in neighborhoods like Saddle Ridge and Panorama Hills. While downtown core demand remained subdued initially due to remote work trends, it has rebounded as more people return to office settings. The market is marked by a good selection of condominium products across various price points, with sellers more open to negotiations. The inventory levels and days on the market indicate a shift towards a more balanced market, providing buyers with the confidence that the most challenging conditions may have passed. The fragmented market features numerous local and regional players, with major developers like Onni Group and Concert Properties Ltd. actively investing to meet the rising demand. Collaborative efforts, such as those between Rentsync and Urbanation, aim to enhance market transparency through comprehensive rental data analysis, further shaping the market landscape.

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Canada Condominiums and Apartments Market Size - Table of Contents

  1. 1. MARKET INSIGHTS DYNAMICS

    1. 1.1 Current Market Scenario

    2. 1.2 Market Overview

    3. 1.3 Market Dynamics

      1. 1.3.1 Drivers

      2. 1.3.2 Restraints

      3. 1.3.3 Opportunities

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Bargaining Power of Suppliers

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Threat of New Entrants

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Current Economic Scenario and Consumer Sentiment

    7. 1.7 Residential Real Estate Buying Trends - Socioeconomic and Demographic Insights

    8. 1.8 Government Initiatives and Regulatory Aspects for the Residential Real Estate Sector

    9. 1.9 Insights into Size of Real Estate Lending and Loan to Value Trends

    10. 1.10 Insights into Interest Rate Regime for General Economy and Real Estate Lending

    11. 1.11 Insights into Rental Yields in the Residential Real Estate Segment

    12. 1.12 Insights into Capital Market Penetration and REIT Presence in Residential Real Estate

    13. 1.13 Insights into Affordable Housing Support Provided by Government and Public-private Partnerships

    14. 1.14 Insights into Real Estate Technology and Startups Active in the Real Estate Segment (Broking, Social Media, Facility Management, and Property Management)

    15. 1.15 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By City

      1. 2.1.1 Toronto

      2. 2.1.2 Montreal

      3. 2.1.3 Vancouver

      4. 2.1.4 Ottawa

      5. 2.1.5 Cagalry

      6. 2.1.6 Hamilton

      7. 2.1.7 Other Cities

Canada Condominiums and Apartments Market Size FAQs

The Canada Condominiums and Apartments Market is projected to register a CAGR of greater than 8% during the forecast period (2024-2029)

Onni Group, Concert Properties Ltd, The Minto Group, Aquilini Development and Bosa Properties are the major companies operating in the Canada Condominiums and Apartments Market.

Canada Condominiums and Apartments Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)