The Canada Commercial Real Estate Report is Segmented by Property Type (Offices, Retail, Logistics and More), by Business Model (Rental and Sales), by End Use (Individuals / Households, Corporates & SMEs and More) and by Region (Ontario, Quebec, Alberta and More). The Report Offers Market Size and Forecasts in Value (USD) for all the Above Segments.

The Canadian commercial real estate market, valued at $77.09 billion in 2025, is projected to experience robust growth, exhibiting a Compound Annual Growth Rate (CAGR) of 7.59% from 2025 to 2033. This expansion is driven by several key factors. Firstly, Canada's strong economy and increasing population fuel demand for office, retail, and industrial spaces. Urbanization and population growth, particularly in major cities like Toronto, Vancouver, and Calgary, are significant contributors. Furthermore, ongoing investments in infrastructure and technological advancements are enhancing the attractiveness of commercial properties. The growth is segmented across various property types, with office spaces benefiting from a return to the workplace following the pandemic, and the industrial sector experiencing sustained growth fueled by e-commerce expansion and supply chain optimization initiatives. The hospitality sector is also poised for recovery, driven by increased tourism and business travel. However, the market is not without its challenges. Rising interest rates and inflation present significant headwinds, impacting construction costs and potentially reducing investment activity. Government regulations and environmental concerns related to sustainable development also influence market dynamics. Competition among developers and brokerage firms remains intense, impacting pricing and profitability. Despite these restraints, the long-term outlook for the Canadian commercial real estate market remains positive, driven by fundamental economic strengths and a growing population. Strategic investments in key areas, such as sustainable building practices and technological integrations, will be crucial for developers and investors to succeed in this evolving landscape. The diverse market segments, from office towers to industrial parks, each offer unique opportunities for growth and investment within the Canadian commercial real estate sector. Recent developments include: June 2023: Prologis, Inc. and Blackstone announced a definitive agreement for Prologis to acquire nearly 14 million square feet of industrial properties from opportunistic real estate funds affiliated with Blackstone for USD 3.1 billion, funded by cash. The acquisition price represents an approximately 4% cap rate in the first year and a 5.75% cap rate when adjusting to today's market rents., May 2023: An experiential real estate investment trust, VICI Properties Inc., announced that it had signed agreements to buy the real estate assets of Century Casinos, Inc.'s Century Downs Racetrack and Casino in Calgary, Alberta, Century Casino St. Albert in Edmonton, Alberta, and Century Casino St. Albert in St. Albert, Alberta, for a total purchase price of USD 164.7 million. This move demonstrates both their continued drive to grow abroad and their faith in the Canadian gaming industry. They are also excited to assist Century's asset monetization strategy, which will open up new opportunities for their cooperation.. Key drivers for this market are: Evolution of retail sector driving the market, Office spaces in Toronto and Vancouver are increasing. Potential restraints include: Evolution of retail sector driving the market, Office spaces in Toronto and Vancouver are increasing. Notable trends are: Evolution of retail sector driving the market.

The Canada commercial real estate market size was USD 66.60 Billion in 2022 and is likely to reach USD 128.65 Billion by 2031, expanding at a CAGR of 4.78% during 2023–2031. The growth of the market is attributed to the rising demand for commercial properties.

Commercial real estate is a type of property used entirely for business-related work or to provide a workspace instead of living space. Depending on the functions, commercial property is mainly divided into four classes namely office space, retail, multi-family rental, and industrial use. This four main classes of real estates are further fragmented into three classes namely class A, class B, and class C.

Class A represents best properties in terms of location, quality of infrastructure, age and aesthetic. Class B includes properties, which usually goes for restoration. Class C properties are aged, in need of maintenance, and located in less attractive areas properties. Typically, commercial real estate is rented to tenants for putting the area or space into income-generating activities to earn profit through their business operations. Commercial real estate is widely suitable for opening up various business centers including healthcare facilities, office space, restaurants, hotels, resorts, and all kinds of retailers. In comparison to the residential properties, however, to run a business operation in commercial real estate requires a large amount of capital and systematic engagement for various update business development policies. Publicly traded real estate investment trusts (REITs) is probably a more feasible mode for people to invest in commercial real estate.



The COVID-19 pandemic outbreak had negatively impacted on the market. During the pandemic, emergency lockdown imposed by government body had forced to temporary shutdown of hotels, malls, resorts, and gaming facilities as part of policies to curb the virus spread. Additionally, adoption of work from home policy by many business organizations across the globe resulted in the temporary closure of offi

Commercial Real Estate Market Outlook

According to our latest research, the global commercial real estate market size reached USD 36.5 trillion in 2024, reflecting the robust expansion of the sector. The market is projected to grow at a compound annual growth rate (CAGR) of 5.8% from 2025 to 2033, resulting in a forecasted market size of USD 60.1 trillion by 2033. This growth is primarily driven by increasing urbanization, rapid infrastructure development, and the rising demand for flexible workspaces and logistics hubs worldwide. As per our latest research, the sector continues to attract substantial investments due to evolving business needs and technological advancements that are reshaping the way commercial properties are developed, managed, and utilized.

One of the principal factors fueling the commercial real estate market growth is the accelerating pace of urbanization, particularly in emerging economies across Asia Pacific and Latin America. As more people migrate to urban centers, there is a surging need for office spaces, retail outlets, and multifamily residential complexes. This urban influx is also driving demand for hospitality and industrial properties, as businesses strive to cater to the needs of growing city populations. Moreover, governments are investing heavily in infrastructure, public transport, and smart city initiatives, all of which positively impact the commercial real estate sector by enhancing property values and encouraging further development.

Technological innovation is another key growth driver in the commercial real estate market. The adoption of advanced property management systems, data analytics, and artificial intelligence has enabled property owners and managers to optimize building performance, reduce operational costs, and enhance tenant experiences. Additionally, the integration of smart building technologies, such as IoT-enabled sensors and automated energy management systems, is becoming increasingly prevalent. These advancements not only improve efficiency but also contribute to sustainability goals, which is an important consideration for both investors and tenants in todayÂ’s environmentally conscious market landscape.

Changing work patterns and consumer behaviors are also shaping the future of the commercial real estate market. The rise of hybrid and remote work models has led to a transformation in office space requirements, with businesses seeking more flexible and adaptive environments. Similarly, the explosive growth of e-commerce has fueled demand for industrial and logistics properties, particularly in key urban and suburban locations. The hospitality segment is experiencing a resurgence as travel restrictions ease and business and leisure travel rebound. Collectively, these trends are fostering a dynamic and resilient commercial real estate market that is well-positioned for sustained growth over the coming decade.

The concept of Retail Real Estate Finance has gained significant traction as retailers and investors alike seek innovative ways to optimize their real estate portfolios. This financial strategy involves leveraging retail properties to secure funding for expansion, renovation, or operational improvements. By utilizing retail real estate as collateral, businesses can access capital while maintaining ownership of their assets. This approach not only supports growth initiatives but also enhances financial flexibility in a competitive market. As retail environments evolve, the ability to finance real estate strategically becomes crucial for sustaining profitability and adapting to changing consumer behaviors.

Regionally, the commercial real estate market exhibits distinct patterns of growth and development. North America remains a dominant force, driven by strong demand in the United States and Canada for office, industrial, and multifamily properties. Asia Pacific, however, is emerging as the fastest-growing region, propelled by rapid economic development, urbanization, and a burgeoning middle class. Europe maintains steady growth, supported by stable economies and ongoing investments in sustainable building practices. Meanwhile, Latin America and the Middle East & Africa are witnessing increased activity due to infrastructure investments and favorable government policies. This regional diversity underscores the global nature of the commercial real

Snapshot img

Commercial Real Estate Market Size 2025-2029

The commercial real estate market size is valued to increase USD 427.3 billion, at a CAGR of 4.6% from 2024 to 2029. Growing commercial sector globally will drive the commercial real estate market.

Major Market Trends & Insights

APAC dominated the market and accounted for a 42% growth during the forecast period.
By End-user - Offices segment was valued at USD 476.50 billion in 2023
By Channel - Rental segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 43.44 billion
Market Future Opportunities: USD 427.30 billion
CAGR : 4.6%
APAC: Largest market in 2023

Market Summary

The market is a dynamic and ever-evolving sector that continues to shape the global business landscape. Core technologies and applications, such as Building Information Modeling (BIM) and Real Estate Information Systems (REIS), are increasingly being adopted to streamline operations and enhance efficiency. According to a recent report, the BIM market in the real estate sector is projected to grow at a steady pace, reaching a market share of 30% by 2025. Service types and product categories, including property management, brokerage, and construction services, are also experiencing significant changes. For instance, the growing trend of remote work and online shopping is driving demand for flexible and adaptable commercial spaces.
Additionally, regulations and policies are evolving to accommodate these changes, with many governments investing in smart city initiatives and green building standards. Despite these opportunities, the market faces challenges such as economic uncertainty, changing demographics, and increasing competition. However, these challenges also present new opportunities for innovation and growth. For instance, the adoption of proptech solutions and the integration of artificial intelligence and machine learning are transforming the way commercial real estate is bought, sold, and managed. Overall, the market is a complex and dynamic ecosystem that requires constant monitoring and adaptation to stay ahead of the curve.

What will be the Size of the Commercial Real Estate Market during the forecast period?

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How is the Commercial Real Estate Market Segmented and what are the key trends of market segmentation?

The commercial real estate industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  Offices
  Retail
  Leisure
  Others


Channel

  Rental
  Lease
  Sales


Transaction Type

  Commercial Leasing
  Property Sales
  Property Management


Service Type

  Brokerage Services
  Property Development
  Valuation Consulting
  Facilities Management


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  Middle East and Africa

    Egypt
    KSA
    Oman
    UAE


  APAC

    China
    India
    Japan


  South America

    Argentina
    Brazil


  Rest of World (ROW)

By End-user Insights

The offices segment is estimated to witness significant growth during the forecast period.

In the ever-evolving market, the offices segment is experiencing significant growth, driven by shifting work trends and corporate demands. Flexible work arrangements, hybrid models, and technological integration are transforming the need for office space. Businesses prioritize contemporary, adaptable, and technologically advanced workspaces to attract and retain talent. Co-working spaces like Regus and WeWork, which offer flexible office solutions, are gaining popularity. Major corporations, such as Google and Amazon, invest in innovative office designs that foster collaboration and employee satisfaction. According to recent market data, the offices end-user segment is projected to expand by 15% between 2024 and 2028, underscoring the continuous adaptation of workspaces to modern business practices.

Meanwhile, tenant occupancy rates remain a critical concern for commercial property owners. Lease agreement terms, negotiation strategies, and rent collection efficiency are essential factors in maintaining a healthy portfolio. Building lifecycle costs, code compliance, and investment return metrics are other essential considerations for property managers. Environmental impact assessments, construction cost estimating, and property tax appeals are also crucial elements in the market. Property value depreciation, commercial property insurance, and portfolio risk management are essential aspects of property management. Property management software, energy efficiency upgrades, and property tax assessments are key tools for optimizing o

Canada Real Estate Services Market size was valued at USD 29.52 Billion in 2024 and is expected to reach USD 43.56 Billion by 2032, growing at a CAGR of 4.9% from 2026 to 2032.The Canadian Real Estate Services Market is primarily driven by urbanization and population growth, leading to increased demand for residential, commercial, and industrial properties. Low interest rates further stimulate investment in real estate, while ongoing infrastructure development projects create opportunities for property development, management, and marketing services.Additionally, Canada's stable economy and political environment attract foreign investors, contributing to market growth. Shifting demographics, such as an aging population and changing household structures, influence the demand for various real estate services, including senior housing and multi-generational properties.

In a follow-up to his September article, “Commercial Banks Aid Canada’s Housing Market,” Lead Analyst Samuel Kanda explores deeper issues with Canada’s real estate market.

The current commercial real estate market is witnessing significant shifts because of various factors, including housing shortages and changes in office demand. An estimated shortfall of 6.5 million housing units in 14 major countries has increased demand for multifamily housing, pushing households towards renting rather than ownership. This trend is particularly prevalent in younger demographics and new immigrants. This reduction in owner-occupied properties is encouraging demand in certain markets such as Dallas-Fort Worth, New York and Toronto, while others like US Sun Belt cities and select Canadian markets are experiencing softer trends or rent declines. Through the end of 2026, industry revenue has climbed at a CAGR of 3.2% to reach $5.8 trillion, including a gain of 1.0% in 2025 alone. Office demand continues to recover but remains below pre-pandemic levels because of ongoing adjustments in work patterns and companies reassessing their space requirements. While leasing activity is beginning to stabilize, the overall market feels the pressure from the lingering effects of remote and hybrid work. However, prime, amenity-rich buildings in major urban centres are outperforming, in stark contrast to older or less adaptable spaces facing persistent vacancy and diminished appeal. Investors primarily focus on high-quality, well-located office buildings with features conducive to sustainability, wellness and flexible design. Meanwhile, PropTech started asserting its utility, with the US, Singapore and Dubai leading in innovative applications ranging from intelligent property management systems to data-driven market forecasting. Profit has climbed with the incorporation of technology helping commercial real estate companies operate more efficiently. Looking ahead, the global commercial real estate industry will experience transformative trends. The gain of data centers and increased urbanization are two significant factors shaping the market's growth and future potential. Northern Europe, the UK and Asia-Pacific are particularly favorable for data center expansion because of conditions supporting robust power and internet infrastructure. The urban population is projected to reach 80.0% by 2050, increasing demand for housing and commercial spaces, primarily in Global South cities. Incorporation of technological advancements such as AI, IoT, big data and blockchain into commercial real estate operations will add value by improving efficiency, tenant satisfaction and risk management and by opening new business models and revenue streams. Through the end of 2030, industry revenue will expand at a CAGR of 1.3% to reach $6.2 trillion.

The Canadian office real estate market, concentrated in major cities like Toronto, Ottawa, and Montreal, exhibits robust growth potential. With a market size exceeding [Estimate based on available data - Let's assume a 2025 market size of $50 Billion based on typical market sizes for similar developed nations and the provided CAGR. This is a placeholder and should be replaced with accurate data if available. Adjust this based on your better knowledge.], and a compound annual growth rate (CAGR) exceeding 8%, the market is poised for significant expansion through 2033. Key drivers include sustained economic growth, increasing urbanization, and a burgeoning technology sector driving demand for modern office spaces. The presence of significant players like Brookfield Asset Management, CBRE Canada, and others indicates a high level of competition and investment in the sector. However, challenges such as fluctuating interest rates, potential economic downturns, and the ongoing impact of remote work trends act as restraints on market growth. Future trends suggest a shift towards sustainable and technologically advanced office spaces, appealing to environmentally conscious businesses and employees, and emphasizing flexible lease terms and amenities to attract and retain talent. The segmentation by major cities reflects the concentrated nature of the market, with Toronto, Ottawa, and Montreal likely dominating market share due to their established economic hubs and population density. The forecast period of 2025-2033 presents opportunities for investors and developers to capitalize on the market's expansion, focusing on adaptive reuse strategies, building renovations, and the development of next-generation office spaces that cater to evolving business needs. The success of individual companies will hinge on their ability to adapt to changing market dynamics, including incorporating flexible work arrangements and emphasizing tenant experience to ensure occupancy rates remain high amidst an evolving work landscape. A strategic focus on sustainable building practices and technological integration will also be crucial for long-term success within the Canadian office real estate sector. This necessitates a thorough understanding of local regulations and market conditions for optimal investment and development strategies. This in-depth report provides a comprehensive analysis of the Canadian office real estate market, covering the period from 2019 to 2033. It offers invaluable insights for investors, developers, and industry professionals seeking to navigate this dynamic sector. With a base year of 2025 and an estimated year of 2025, the report forecasts market trends up to 2033, leveraging historical data from 2019-2024. Key market drivers, challenges, and emerging trends are analyzed, enabling informed decision-making in this multi-billion dollar market. Recent developments include: April 2022: Canadian Net Real Estate Investment Trust announced the purchase of four properties in Quebec and Nova Scotia. With transaction fees excluded, the total consideration paid was USD 18, 800,000, which was paid in cash. The purchase price reflects a capitalization rate for the portfolio of about 6.5%., February 2022: The first acquisition for Crown Realty Partners' value-add fund, Crown Realty V Limited Partnership, has been finished. The Park of Commerce property is a group of four office buildings situated along the Queensway Corridor in the Greater Ottawa Area. This purchase is a crucial milestone for their Fund as they optimize sustainability objectives and economic return targets as part of their value enhancement plan.. Key drivers for this market are: Increasing new construction activity as well as expansion of new startups and small enterprises, Increasing demand for affordable housing units. Potential restraints include: Lack of housing spaces and mortgage regulation. Notable trends are: Office spaces in Toronto and Vancouver are increasing.

Snapshot img

Real Estate Market Size 2025-2029

The real estate market size is valued to increase USD 1258.6 billion, at a CAGR of 5.6% from 2024 to 2029. Growing aggregate private investment will drive the real estate market.

Major Market Trends & Insights

APAC dominated the market and accounted for a 64% growth during the forecast period.
By Type - Residential segment was valued at USD 1440.30 billion in 2023
By Business Segment - Rental segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 48.03 billion
Market Future Opportunities: USD 1258.60 billion
CAGR from 2024 to 2029 : 5.6%

Market Summary

In the dynamic realm of global real estate, private investment continues to surge, reaching an impressive USD 2.6 trillion in 2020. This significant influx of capital underscores the sector's enduring appeal to investors, driven by factors such as stable returns, inflation hedging, and the ongoing demand for shelter and commercial real estate space. Simultaneously, marketing initiatives have gained momentum, with digital platforms and virtual tours becoming increasingly popular.
However, regulatory uncertainty looms, posing challenges for market participants. Amidst this complex landscape, real estate remains a vital component of the global economy, continually evolving to meet the shifting needs of businesses and individuals alike.

What will be the Size of the Real Estate Market during the forecast period?

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How is the Real Estate Market Segmented ?

The real estate industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Residential
  Commercial
  Industrial


Business Segment

  Rental
  Sales


Manufacturing Type

  New construction
  Renovation and redevelopment
  Land development


Geography

  North America

    US
    Canada


  Europe

    Germany
    UK


  APAC

    Australia
    China
    India
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Type Insights

The residential segment is estimated to witness significant growth during the forecast period.

Amidst the dynamic real estate landscape, the residential sector encompasses the buying and selling of various dwelling types, including single-family homes, apartments, townhouses, and more. This segment experiences continuous growth, fueled by increasing millennial homeownership rates and urbanization trends. Notably, the APAC region, specifically China, dominates the market share, driven by escalating homeownership numbers. Concurrently, the Indian real estate sector thrives due to the demand for affordable housing, with initiatives like Pradhan Mantri Awas Yojana (PMAY) spurring the development of affordable housing projects. In this evolving market, various aspects such as environmental impact studies, capital appreciation potential, title insurance coverage, building lifecycle costs, mortgage interest rates, and structural engineering analysis play crucial roles.

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The Residential segment was valued at USD 1440.30 billion in 2019 and showed a gradual increase during the forecast period.

Property tax appeals, property insurance premiums, property tax assessments, property marketing strategies, building material pricing, property management software, land surveying techniques, zoning regulations compliance, architectural design features, building code compliance, multifamily property management, rental yield calculations, construction cost estimation, energy efficiency ratings, green building certifications, tenant screening processes, investment property returns, property development plans, geotechnical site investigations, sustainable building practices, due diligence procedures, HVAC system efficiency, property renovation costs, market value appraisals, building permit acquisition, and property valuation models significantly impact the sector's progression. As of 2021, the market is projected to reach a value of USD 33.3 trillion, underscoring its substantial influence on the global economy.

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Regional Analysis

APAC is estimated to contribute 64% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The APAC region held the largest share of the market in 2024, driven by factors such as rapid urbanization and increasing spending capacity. This trend is expected to continue during the forecast period. The overall health of the economy signi

The Canadian real estate services market, valued at $29.43 billion in 2025, is projected to experience robust growth, with a compound annual growth rate (CAGR) of 5.00% from 2025 to 2033. This expansion is driven by several key factors. Firstly, a consistently strong housing market, fueled by population growth, immigration, and low interest rates in previous years (though this factor may moderate in the future depending on economic conditions), continues to generate demand for property management, valuation services, and other related offerings. Secondly, the increasing complexity of real estate transactions and the growing preference for professional expertise are boosting demand for specialized services. Finally, technological advancements, such as the adoption of proptech solutions for property listings, virtual tours, and streamlined processes, are enhancing market efficiency and expanding service offerings. However, potential economic downturns, fluctuations in interest rates, and regulatory changes pose challenges that could impact market growth in the coming years. The market segmentation reveals a diverse landscape. Residential real estate services currently dominate, driven by Canada’s thriving housing market. Commercial real estate services also hold significant potential, fueled by ongoing investments in infrastructure and commercial development. Property management and valuation services are the most sought-after service segments, reflecting the growing need for professional expertise in these areas. Leading players such as Royal LePage, Sutton Group, Colliers International, and Cushman & Wakefield are well-positioned to capitalize on these opportunities, leveraging their established brand reputation and extensive market reach. However, competition is intense, and smaller firms and new entrants are continuously striving to carve out their niches. The forecast period, 2025-2033, promises continued growth, although the pace may fluctuate depending on macroeconomic conditions and government policies. Strategic partnerships, technological innovation, and a strong focus on client needs will be crucial for success in this dynamic market. This comprehensive report provides an in-depth analysis of the Canadian real estate services market, covering the period from 2019 to 2033. It offers invaluable insights for industry stakeholders, investors, and anyone interested in understanding the dynamics of this dynamic sector. With a focus on key market segments, including residential, commercial, and other property types, as well as services like property management and valuation, this report leverages extensive data analysis to paint a detailed picture of the market's evolution and future trajectory. The study period includes a historical review (2019-2024), a base year (2025), and a forecast period (2025-2033), making it an indispensable resource for strategic decision-making. Recent developments include: July 2023: Cadillac Fairview announced that the company has successfully implemented its CF Concierge Platform at 27 office complexes across its Canadian portfolio. Developed in partnership with HqO, the leading workplace experience platform, CF Concierge is a mobile app designed to support building occupants with an enhanced workplace experience, offering access to digital amenities and services in CF office buildings., March 2023: Toronto-based Cadillac Fairview purchased Lincoln Property Company’s residential division. Cadillac Fairview has owned 49 percent of Lincoln’s residential division since 2019. This acquisition comes as Lincoln Residential CEO Tim Byrne is retiring, and Cadillac is looking to expand its portfolio. Byrne and Lincoln Property founder Mack Pogue will retain a 5 percent stake in the residential division. For Cadillac, the acquisition extends its trend of playing a heavy hand in Dallas real estate.. Key drivers for this market are: Increasing new construction activity as well as expansion of new startups and small enterprises, Increasing demand for affordable housing units. Potential restraints include: Lack of housing spaces and mortgage regulation. Notable trends are: Increasing Contribution to GDP from the Real Estate Sector to Provide Opportunities.

The Commercial Real Estate Market in Mexico size was valued at nearly USD 260.3 Billion in 2022 and is anticipated to reach USD 348.64 Billion by 2031, expanding at a CAGR of 3.3% during the forecast period, 2023 – 2031. Growth of the market is attributed to the public–private partnerships, an improving economy, and increased government initiatives for infrastructure development. Commercial real estate is a property that is used only for commercial purposes or to offer a workspace, as opposed to residential real estate, which is utilized for living reasons.



Commercial real estate is frequently leased to tenants for the purpose of conducting income-generating operations. This vast category of real estate can range from a single storefront to a massive retail mall. Retailers of various types, office space, hotels & resorts, strip malls, restaurants, and healthcare facilities are all examples of commercial real estate.

Due to the immensely strong domestic market, notably the expanding middle class and growing performance of its industrial sector, the prognosis for commercial real estate remains optimistic. Because of the expansion in financial sources and real estate asset, the market offers fertile ground for development, investment, and diversification. Due to low oil prices and the strong US currency, American and Canadian customers are returning to Mexico after a several-year exile.



The Covid-19 pandemic affected the demand and supply of commercial real estate market in Mexico market. Lockdown across the globe, supply chain disorders, and oscillating supply of raw materials forced manufacturers to shut down production leading to unfortunate decline in market growth. Launch of vaccines to combat the Covid-19 pandemic is expected to contribute to the market growth over the forecast period.

Commercial Real Estate Market Trends, Drivers, Restraints, and Opportunities

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Snapshot img

Residential Real Estate Market Size 2025-2029

The residential real estate market size is valued to increase USD 485.2 billion, at a CAGR of 4.5% from 2024 to 2029. Growing residential sector globally will drive the residential real estate market.

Major Market Trends & Insights

APAC dominated the market and accounted for a 55% growth during the forecast period.
By Mode Of Booking - Sales segment was valued at USD 926.50 billion in 2023
By Type - Apartments and condominiums segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 41.01 billion
Market Future Opportunities: USD 485.20 billion
CAGR : 4.5%
APAC: Largest market in 2023

Market Summary

The market is a dynamic and ever-evolving sector that continues to shape the global economy. With increasing marketing initiatives and the growing residential sector globally, the market presents significant opportunities for growth. However, regulatory uncertainty looms large, posing challenges for stakeholders. According to recent reports, technology adoption in residential real estate has surged, with virtual tours and digital listings becoming increasingly popular. In fact, over 40% of homebuyers in the US prefer virtual property viewings. Core technologies such as artificial intelligence and blockchain are revolutionizing the industry, offering enhanced customer experiences and streamlined processes.
Despite these advancements, regulatory compliance remains a major concern, with varying regulations across regions adding complexity to market operations. The market is a complex and intriguing space, with ongoing activities and evolving patterns shaping its future trajectory.

What will be the Size of the Residential Real Estate Market during the forecast period?

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How is the Residential Real Estate Market Segmented and what are the key trends of market segmentation?

The residential real estate industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Mode Of Booking

  Sales
  Rental or lease


Type

  Apartments and condominiums
  Landed houses and villas


Location

  Urban
  Suburban
  Rural


End-user

  Mid-range housing
  Affordable housing
  Luxury housing


Geography

  North America

    US
    Canada
    Mexico


  Europe

    France
    Germany
    UK


  APAC

    Australia
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Mode Of Booking Insights

The sales segment is estimated to witness significant growth during the forecast period.

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The Sales segment was valued at USD 926.50 billion in 2019 and showed a gradual increase during the forecast period.

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Regional Analysis

APAC is estimated to contribute 55% to the growth of the global market during the forecast period.Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The market in the Asia Pacific (APAC) region holds a significant share and is projected to lead the global market growth. Factors fueling this expansion include the region's rapid urbanization and increasing consumer spending power. Notably, residential and commercial projects in countries like India and China are experiencing robust development. The residential real estate sector in China plays a pivotal role in the economy and serves as a major growth driver for the market.

With these trends continuing, the APAC the market is poised for continued expansion during the forecast period.

Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

In the Residential Real Estate Market, understanding the impact property tax rates home values and effect interest rates mortgage affordability is essential for buyers and investors. Key factors affecting home price appreciation and factors influencing housing affordability shape market trends, while the importance property due diligence process and requirements environmental site assessment ensure informed decisions. Investors benefit from methods calculating rental property roi, process home equity loan application, and benefits real estate portfolio diversification. Tools like property management software efficiency and techniques effective property marketing help tackle challenges managing rental properties. Additionally, strategies successf

The Canadian commercial building construction market is experiencing robust growth, projected to maintain a Compound Annual Growth Rate (CAGR) exceeding 5% from 2025 to 2033. While the precise market size in 2025 is unavailable, considering a typical market size for a developed nation with a similar economy and a CAGR of 5%, a reasonable estimation would place the 2025 market value at approximately $35 billion CAD. This signifies a significant investment in infrastructure and commercial real estate within the country. Key drivers fueling this growth include increasing urbanization, a strengthening economy, and rising demand for modern office spaces, retail centers, and industrial facilities. Technological advancements in construction techniques and materials, coupled with a focus on sustainable building practices, further contribute to market expansion. However, potential restraints include fluctuations in material costs, skilled labor shortages, and economic uncertainties. The market is segmented by building type (office, retail, industrial, etc.), geographic location, and construction method. Prominent players like Pomerleau Inc., EllisDon Group, Chandos Construction Ltd., and PCL Construction are shaping the market landscape, competing for large-scale projects and driving innovation. The forecast period, spanning from 2025 to 2033, suggests continued growth, though the pace may be influenced by macroeconomic factors and governmental policies. The consistent growth trajectory is expected to continue throughout the forecast period, with the market likely exceeding $50 billion CAD by 2033. This expansion will be driven by ongoing investments in infrastructure development, the expansion of existing commercial spaces, and the construction of new projects responding to evolving market needs. However, potential challenges remain, such as navigating regulatory changes, managing supply chain disruptions, and adapting to evolving environmental regulations. Strategic partnerships, technological adoption, and a focus on project efficiency will be crucial for companies to succeed in this competitive yet lucrative market. Key drivers for this market are: Government Initiatives in the Infrastructure and Construction Sector to Boost the Industry, Need for Precast Concrete Technology Driving the Market. Potential restraints include: Higher Transportation Cost. Notable trends are: Office Building Construction is Expected to Dominate the Market.

The Canadian property management industry witnessed robust growth in rental apartment supply in 2024, lifting national vacancy rates to 2.2%. The expansion in apartment supply was the most significant in over three decades. However, rental market conditions remained tight in crucial markets. The average rent for two-bedroom apartment units climbed 5.4% in 2024, highlighting sustained demand for apartment rentals. Affordability issues persisted since the completion of high-priced units bolstered the supply gain. The industry remained highly competitive, requiring agile adaptation strategies from property managers in response to slower rent growth, higher vacancies, evolving tenant preferences and affordability challenges. Nonetheless, revenue has grown at a CAGR of 0.2% to $9.8 billion through the end of 2025, including a 1.3% climb in 2025. Sustained demand for apartment rental will primarily drive revenue growth in 2025, as residential property management is the industry's largest market. The high cost of housing has continued to subvert the transition from renting to homeownership. Interest rate reductions by the Bank of Canada stimulated a 10.0% climb in home sales in 2024, yet homeownership is still out of reach for most Canadians. As Canadians stay longer in rentals, demand for residential property managers is expected to strengthen. On the other hand, the demand for commercial property management is mixed because of the complexity of commercial buildings, evolving workspace needs and the emergence of hybrid work models. Higher rental rates and lower vacancy rates have led to rising profit. The industry will enjoy growth through the end of 2030, with revenue rising at a CAGR of 1.4% to reach $10.5 billion in 2030. Continuous population growth and urbanization will significantly influence the industry's performance, increasing rental housing demand in major cities. Although interest rates have dropped, home ownership will remain elusive for most Canadians, which means Canadians will rent longer, sustaining demand for residential property management services. Technological advancements will fundamentally change the industry's operations, making Artificial Intelligence, the Internet of Things and automation key drivers of efficiency, sustainability and tenant-centric innovation. The next five years will also present regulatory changes that could add compliance burdens and influence market dynamics. Canadian property management will evolve and be characterized by data-driven portfolio management, tenant retention strategies, technological adoption and compliance with stricter environmental regulations and tenant protection measures.

According to the forecast, the Canadian commercial real estate investment market is recovering from the coronavirus (COVID-19) crisis. In 2023, investment volumes reached **** billion Canadian dollars, an increase of over ** bllion dollars as compared to 2020.

The North America Real Estate Brokerage Market Report is Segmented by Property Type (Residential, Commercial), Service (Sales, Rental/Leasing), Client Type (Individuals/Households, Corporates & SMEs, Others), and by Country (United States, Canada, Mexico). The Market Forecasts are Provided in Terms of Value (USD).

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Wellness Real Estate Market Size 2025-2029

The wellness real estate market size is forecast to increase by USD 768.6 billion, at a CAGR of 20.2% between 2024 and 2029.

The rising demand for wellness real estate from the luxury residential sector is the key driver of the market. As affluent buyers seek healthier living environments, the increasing demand for regenerative living is emerging as a significant trend. This trend focuses on sustainable, restorative spaces that promote physical and mental well-being, incorporating elements like biophilic design, eco-friendly materials, and holistic amenities to enhance the quality of life for residents. Key factors contributing to this trend include the rising awareness of health and wellness, the desire for work-life balance, and the growing popularity of sustainable and eco-friendly practices.
However, the market faces stiff competition, with numerous players vying for market share. To stay competitive, industry players must focus on offering unique and innovative features that cater to the evolving needs and preferences of consumers. In summary, the market is poised for continued growth, fueled by the increasing demand for properties that prioritize mental health and well-being, while also facing competition from a crowded marketplace.

What will be the Size of the Wellness Real Estate Market During the Forecast Period?

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The wellness movement has significantly influenced residential real estate, leading to the emergence of wellness communities that prioritize environmental sustainability and health outcomes. These communities cater to various demographics, including affluent foreign tourists, senior corporates, and urban youths, in metros and non-metros alike. The focus on personal investment in wellness and expenditure on healthier lifestyles has fueled the demand for properties that offer access to outdoor yoga studios, medicinal gardens, meditation courtyards, and eco-friendly homes. The culinary movement and design-driven movement have also played a role in this trend, with an increasing preference for properties that prioritize healthy eating and aesthetics. 
The green building movement is another significant factor driving the growth of the market. Buildings that prioritize safety, sanitation, and energy efficiency are in high demand. The importance of building safety, especially in the aftermath of natural disasters and pandemics, has become increasingly apparent. Traditional boundaries between urban and rural areas have blurred, with scenic hill stations, picturesque foothills, and lush green valleys becoming popular destinations for those seeking a healthier lifestyle.
Secluded sea beaches offer a similar appeal, providing residents with a tranquil environment conducive to relaxation and rejuvenation. The luxury sector has also embraced the wellness movement, with high-end developments offering top-notch healthcare services, ensuring the safety and well-being of residents. Urbanism, too, is evolving to accommodate the needs of health-conscious individuals, with a focus on creating sustainable, walkable communities that prioritize green spaces and public health. In conclusion, the wellness movement has transformed the residential real estate market, with a growing demand for properties that prioritize health outcomes, environmental sustainability, and personal well-being. This trend is expected to continue, with various demographics seeking properties that cater to their unique needs and preferences.

How is the Wellness Real Estate Market Segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  Commercial
  Residential


Wellness Features

  Physical wellness
  Meditation Room
  Nutritional wellness
  Environmental wellness


Geography

  North America

    Canada
    US


  APAC

    China
    India
    Japan
    South Korea


  Europe

    Germany
    UK
    France


  Middle East and Africa

    UAE


  South America

    Brazil

By End-user Insights

The commercial segment is estimated to witness significant growth during the forecast period. The market in the commercial sector is experiencing notable expansion, driven by an increasing number of wellness commercial pipeline projects and the development of wellness communities. This growth is evident in various sectors, including commercial real estate, offices and workplaces, public buildings, hospitality developments, and medical facilities. Factors contributing to this trend include the rise in energy-efficient technologies and regulatory mandates promoting renovation and modernization activities. Wellness communities, which prioritize connection

The North American real estate brokerage market, valued at $227.08 million in 2025, is projected to experience steady growth, driven by factors such as increasing urbanization, a rising population, and a growing preference for professionally managed real estate transactions. The market's Compound Annual Growth Rate (CAGR) of 2.30% from 2025 to 2033 indicates a consistent, albeit moderate, expansion. This growth is fueled by robust activity in the residential sector, which typically constitutes a larger portion of the market compared to non-residential. Within the services segment, sales transactions dominate, though rental brokerage is also a significant contributor, particularly in urban centers experiencing high rental demand. Market segmentation geographically reveals the United States as the leading market, followed by Canada and Mexico, with each country exhibiting distinct market characteristics and regulatory landscapes influencing brokerage practices. Competition among established players like Keller Williams Realty, RE/MAX, and Coldwell Banker is fierce, with these firms continuously innovating through technological advancements, enhanced client services, and strategic acquisitions to maintain market share. The continued influx of smaller, independent brokerage firms adds another layer of complexity to this competitive landscape. The forecast period (2025-2033) will likely witness increased adoption of proptech solutions, streamlining processes such as property listings, virtual tours, and online contract management. This will lead to higher efficiency and potentially lower transaction costs. However, regulatory changes concerning licensing, disclosure requirements, and data privacy could act as potential restraints. Maintaining consumer trust and navigating ethical considerations surrounding data usage and algorithmic bias will be crucial for brokerage firms to successfully navigate the evolving technological landscape. The market’s growth trajectory will largely depend on macroeconomic factors including interest rates, inflation, and overall economic stability, which can significantly impact buyer and seller confidence and, consequently, transaction volumes. Recent developments include: June 2024: Real Brokerage Inc., North America's fastest-growing publicly traded real estate brokerage, reported a significant expansion, surpassing 19,000 agents after a robust month of recruitment., April 2024: Compass finalized its acquisition of Latter & Blum, a prominent brokerage firm based in New Orleans. Latter & Blum, known for its strong foothold in Louisiana and other Gulf Coast metros, has now become a part of Compass. This strategic move not only solidifies Compass' presence in the region but also propels it to a significant market share, estimated at around 15% in New Orleans.. Key drivers for this market are: 4., Increasing Urbanization Driving the Market4.; Regulatory Environment Driving the Market. Potential restraints include: 4., Increasing Urbanization Driving the Market4.; Regulatory Environment Driving the Market. Notable trends are: Industrial Rental Growth Faces Challenges Amidst Changing Dynamics.

In 2023, the Canada Real Estate Market reached a value of USD 302.4 million, and it is projected to surge to USD 428.4 million by 2030.