Canada Real Estate Services Market Size (2024 - 2029)

The Canada Real Estate Services Market is projected to experience growth over the forecast period, with its market size expanding significantly. This growth is influenced by various factors, including affordability challenges in major cities and the impact of rising mortgage rates. While some regions, particularly in Alberta and Saskatchewan, maintain reasonable pricing, the overall trend indicates a widespread increase in ownership expenses. The market's dynamics are further shaped by fluctuations in property prices, especially in the Greater Toronto Area and British Columbia's Lower Mainland, which have seen notable changes due to interest rate adjustments.

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Market Size of Canada Real Estate Services Industry

Canada Real Estate Services Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 29.43 Billion
Market Size (2029) USD 37.56 Billion
CAGR (2024 - 2029) 5.00 %
Market Concentration Low

Major Players

Canada Real Estate Services Market Major Players

*Disclaimer: Major Players sorted in no particular order

Canada Real Estate Services Market Analysis

The Canada Real Estate Services Market size is estimated at USD 29.43 billion in 2024, and is expected to reach USD 37.56 billion by 2029, growing at a CAGR of 5% during the forecast period (2024-2029).

  • In the second quarter of 2022, RBC's aggregate affordability metric reached a new high (60.0%) nationally, as well as in Victoria (67.6%), Vancouver (90.2%), and Toronto (83.0%). Smaller markets in Ontario (including Hamilton, London, St. Catharines, Kitchener-Waterloo-Cambridge, and Windsor) and British Columbia (including Kelowna) also attained their lowest levels of affordability in history, based on the mortgage carrying cost to family income ratio.
  • Ottawa (RBC composite affordability of 48.5%) and Halifax (41.3%) reached previous highs. While the situation isn't as bad in other parts of the country—in fact, many markets in Alberta and Saskatchewan, as well as some in Atlantic Canada, appear to be decently priced—the rapidly deteriorating trend is widespread. A spike in RBC's indicator indicates a lack of affordability.
  • Higher mortgage rates have yet to have their full impact. Further expected, Bank of Canada rate hikes will put additional upward pressure on ownership expenses in the second half of 2022. Buying a typical property in Canada costs an extra USD 380 per month in the second quarter (or 5.9% of household income), with higher mortgage rates accounting for USD 230 (3.5 percentage points). Buyers in Vancouver (up 8.1 percentage points as a share of income), Toronto (up 8.1 percentage points), Victoria (up 6.7 percentage points), and Ottawa and Halifax (both up 4.8 percentage points) saw the greatest increases.
  • According to the Canadian Real Estate Association, the average selling price of a home sold on the MLS system in April 2022 was USD 716,000. This is the fourth monthly gain in a row, with a total increase of more than USD 100,000 since the beginning of the year.
  • Much of the bounce is due to an increase in sales in the Greater Toronto Area and British Columbia's Lower Mainland, two areas of the country that experienced both the greatest gains during the early days of COVID-19 and the greatest decline once interest rates rose.
  • When those two areas are excluded, the national average price falls by more than USD 144,000 to an average house price of USD 572,000 in cities other than Toronto and Vancouver.

Canada Real Estate Services Industry Segmentation

Real Estate Services means providing a service with respect to the purchase, sale, lease, rental, or appraisal of real property. The report provides a comprehensive background analysis of the Canadian real estate services market, covering the current market trends, restraints, technological updates, and detailed information on various segments and the industry's competitive landscape. The impact of COVID-19 has also been incorporated and considered during the study.

The Canadian real estate services market is segmented based on type (residential, commercial, and other types) and service (property management, valuation services, and other services). The report offers market size and forecasts for the Canada Real Estate Services Market in value (USD) for all the above segments.

By Type
Residential
Commercial
Other Types
By Service
Property Management
Valauation Services
Other Services
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Canada Real Estate Services Market Size Summary

The Canadian real estate services market is poised for significant growth over the forecast period, driven by various economic and demographic factors. The market is characterized by a fragmented landscape with both international and local players, including prominent companies like Colliers International Group Inc. and Cushman & Wakefield ULC. The sector is gradually recovering from the pandemic's impact, with expectations of continued expansion. However, the market faces challenges such as high mortgage rates and affordability issues, particularly in major cities like Vancouver, Toronto, and Victoria. These challenges are compounded by the need for increased housing supply to accommodate anticipated immigration-driven demand, which is expected to boost real GDP growth across the country.

Residential investment has become a crucial component of Canada's economic recovery, contributing significantly to GDP growth. This sector includes the costs associated with building new homes, major renovations, and ownership transfers. Despite recent declines in housing investment due to rising borrowing costs, the real estate market remains a vital part of the economy. The focus on sustainability and ESG performance is increasingly influencing the industry, with companies striving to attract investment by demonstrating strong commitments to environmental responsibility. The market's growth trajectory is supported by strategic acquisitions and technological advancements, such as Cadillac Fairview's implementation of the CF Concierge Platform, which enhances workplace experiences in its office buildings.

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Canada Real Estate Services Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increasing new construction activity as well as expansion of new startups and small enterprises

      2. 1.2.2 Increasing demand for affordable housing units

    3. 1.3 Market Restraints

      1. 1.3.1 Lack of housing spaces and mortgage regulation

    4. 1.4 Market Opportunities

      1. 1.4.1 Demand for office spaces is likely to increase across key cities in Canada

    5. 1.5 Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Impact of Covid-19 on the market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Residential

      2. 2.1.2 Commercial

      3. 2.1.3 Other Types

    2. 2.2 By Service

      1. 2.2.1 Property Management

      2. 2.2.2 Valauation Services

      3. 2.2.3 Other Services

Canada Real Estate Services Market Size FAQs

The Canada Real Estate Services Market size is expected to reach USD 29.43 billion in 2024 and grow at a CAGR of 5% to reach USD 37.56 billion by 2029.

In 2024, the Canada Real Estate Services Market size is expected to reach USD 29.43 billion.

Canada Real Estate Services Market Report Snapshots

Canada Real Estate Services Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)