Canadian Real Estate Market Update – Q1 2025

Canada entered 2025 with economic resilience. GDP growth remains positive, inflation is easing, and real estate fundamentals are stabilizing across key sectors.

Industrial and retail assets are benefiting from steady tenant demand and limited new supply, while multi-residential remains structurally undersupplied despite some cyclical softening. Even the office sector is showing early signs of cyclical recovery. Against this backdrop, Fiera Capital’s base case assigns a 60% probability to a “Trade Resolution” scenario, where partial tariff rollbacks ease inflationary pressure and pave the way for cautious rate cuts. This sets the stage for a renewed commercial real estate investment cycle in Canada, especially in income-producing assets with pricing power and yield durability.

Our latest report outlines where the most compelling opportunities lie for forward-looking investors.