Canadian Real Estate Market Update – Q3 2025
November 12, 2025 | Market Commentary, Private Markets
In our latest report, Michael Le Coche, Vice President, Research and Predictive Analytics, identifies key trends shaping Canada’s real estate landscape today, and where the most compelling opportunities in Canadian real estate lie for investors seeking income durability with inflation protection.
Economic Growth Trends1
- Canada’s economy contracted by 1.6% annualized in Q2 2025 (latest reading), reversing the prior quarter’s revised 2.0% growth and falling short of expectations
- While the headline figure suggested a soft patch, the underlying story was one of an external drag rather than domestic deterioration
- The decline was driven by a 7.5% drop in exports, the steepest since 2020, as U.S. tariff measures temporarily disrupted trade flows
- Key export categories such as passenger vehicles (-24.7%) and industrial machinery (-18.5%) were hardest hit
- Encouragingly, final domestic demand rose at its fastest pace in a year, buoyed by resilient household consumption and a rebound in public-sector spending
- More recently, preliminary gross domestic product (“GDP”) shows July as the strongest month since January, with August holding steady, signaling stabilization
- Further, corporate inventory builds point to business confidence in improving demand as trade tensions ease
- Overall conditions suggest Canada is well positioned for a growth rebound as external pressures normalize
Most Recent
