A real estate expert has pointed to early signs of a recovery in Canada’s property market as employees return to offices, despite ongoing challenges in the condominium sector.
Brian Rosen, CEO of Colliers Canada, said that the office market improved in the second quarter of the year, recording its best performance in eight to nine quarters. The Ontario government has required employees to return to working from offices five days a week after years of operating under a hybrid model.
A CBRE report noted that the office vacancy rate fell to 18% by the end of 2025, compared with 18.7% the previous year. Rosen explained that vacancy rates in downtown Toronto declined by nearly 3%, and he expects this trend to continue in the absence of new office developments.
Condominiums, however, are facing a major crisis. Rosen described the sector as being “in a complicated situation,” adding that indicators suggest it is approaching a bottom but will not recover before 2026.
He linked this to tighter immigration policies introduced in 2024 to reduce unemployment and improve access to housing and public services, which led to weaker demand as the number of non-permanent residents declined.
Greater Vancouver recorded a 5.3% year-on-year drop in condo prices, with expectations that prices will continue to fall this year, although there is hope that demand will return in the future.
