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Is Real Estate Still a Good Investment in Canada in 2025?

  • Writer: Konstantin Shaburov
    Konstantin Shaburov
  • Sep 22, 2025
  • 2 min read

Updated: Oct 17, 2025

Illustration of a balance scale with a piggy bank on one side and a house on the other, symbolizing real estate investment in Canada in 2025

Is Real Estate Still a Good Investment in Canada in 2025?

For decades, Canadian real estate has been considered one of the safest and most profitable investments. But in 2025, with high interest rates, shifting affordability, and signs of cooling in certain markets, many are wondering: is real estate still a good investment in Canada? The answer depends on where you buy, what you buy, and your long-term strategy.


The Case for Real Estate in 2025

  1. Long-Term Appreciation. Despite recent volatility, Canadian real estate has a strong history of long-term price growth. Even modest annual increases compound significantly over time.

  2. Population Growth. Canada continues to welcome hundreds of thousands of newcomers annually. Immigration fuels demand for both rentals and ownership, especially in major cities.

  3. Rental Demand. With affordability stretched, more Canadians are renting for longer. This creates strong rental markets in urban centres and university towns.

  4. Tangible Asset. Real estate offers security that stocks or crypto can’t - you own a physical property that holds intrinsic value.


The Challenges in 2025

  1. High Interest Rates. Borrowing is expensive, cutting into cash flow and making it harder to finance multiple properties.

  2. Affordability Pressures. With prices still high in Toronto, Vancouver, and Ottawa, breaking into the market is difficult for new investors.

  3. Market Corrections. Some regions (Ontario and B.C.) are forecasted for slight price declines in 2025. Buying at the wrong time or over-leveraging can lead to losses.

  4. Government Regulations. Foreign buyer restrictions, tighter mortgage rules, and rental caps in some provinces add uncertainty for investors.


Best Opportunities for Investors

  • Secondary Cities: Places like London, Hamilton, Halifax, and Saskatoon offer better entry points with strong rental demand.

  • Multi-Unit Properties: Duplexes, triplexes, and basement apartments generate stronger rental yields.

  • Pre-Construction Condos: While risky, they can provide value if purchased in high-growth areas.

  • Long-Term Buy & Hold: Investors with a 7–10 year outlook are best positioned to ride out short-term fluctuations.


Who Should Be Cautious

  • Short-term flippers relying on rapid appreciation.

  • Highly leveraged buyers who may struggle if rates stay high.

  • Those without a financial cushion for vacancies, repairs, or rate hikes.


Bottom Line

Real estate in Canada is still a good investment in 2025 - but not for everyone. It’s less about quick profits and more about long-term strategy, location, and stable financing. Investors who buy smart and hold through market cycles will likely see strong returns. But caution, research, and patience are essential.



Thinking about making your next move in real estate? Whether you’re buying, selling, or balancing both, the right strategy starts here.



 
 
 

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