Real Estate and Urban Development | Secteurs | TTC Nantel Services-Conseils

Canadian Real Estate Market: A Key Sector in the Economic Recovery

Real estate brokerage plays a pivotal role in the Canadian economy: it facilitates property transfers, drives private investment, and shapes the development of major urban centers. In 2025, fees generated from residential, commercial, and industrial transactions will reach $19.3 billion CAD, equivalent to 0.7% of GDP.
The network comprises 948 firms and employs over 162,000 professionals—licensed brokers, appraisers, and digital marketing specialists—whose compensation is primarily commission-based.

The market’s strength is supported by three main drivers:

Demographics and immigration – Over 465,000 new permanent residents annually keep pressure on the housing supply, particularly in the Toronto–Montreal–Ottawa corridor.
Resurgence of commercial private equity – Urban logistics, data centers, and multifamily assets are regaining popularity, with investment volumes up 11% compared to 2023.
Digital substitution – Virtual tours, e-signatures, and AI-powered lead generation shorten sales cycles by about 18 days, while expanding brokers’ geographic reach.

Beyond transactions, professionals influence urban planning: their land analyses guide decision-makers on density planning, industrial site repurposing, and integrating public transit into new neighborhoods.

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Key Indicators for Real Estate Brokerage (Residential + Commercial)

These three aggregated statistics provide a quick overview of the sector’s size, profitability, and structural momentum.

2025 Revenue

$19,320.7M

Net fees derive 77% from residential resales, 15% from commercial assets, and 8% from land and institutional portfolios.

Average Profit Margin

28,4 %

The variable-cost model—commission paid only upon closing and growing reliance on hybrid work—maintains profitability nearly three times higher than that of traditional real estate development.

Projected CAGR 2025–2030

+ 2,1 %

The anticipated drop in interest rates below 3% and continued urbanization will support moderate volume growth, tempered by price normalization following the post-pandemic surge.

Structural Trends and Five-Year Outlook

Over the next five years, three major trends will shape the landscape:

Technology and Data
- MLS platforms enhanced with predictive algorithms will offer real-time valuations and scenarios for energy or rental value increases.
- Asset tokenization via blockchain could open the door to fractional retail ownership, creating new consulting revenue streams for specialized brokers.
Regulation & ESG
- Municipalities will increase density around transit zones (TODs) and enforce stricter energy performance standards.
- Brokers will need to understand carbon audit terminology and green tax policies to guide both investors and individual buyers.
Consolidation Movements
- The ecosystem is still fragmented (no single player holds >5% market share), but Canadian–U.S. megagroups will emerge, offering integrated legal, mortgage, and wealth management services.
- Niche agencies will join forces to pool client databases and digital marketing resources.

In this environment, professionals who invest early in real estate analytics, ESG expertise, and strategic alliances will capture the majority of added value—while helping to redefine urban development in Canada.