Anticipate a transformative 2025 as Toronto unveils a series of groundbreaking property developments, enhancing the skyline and providing lucrative Toronto property investment opportunities. This year focuses on both residential and commercial spaces, promising modern amenities and innovative architectural designs. The city’s ambitious aim includes developing 20,000 new rental homes, featuring up to 16,000 purpose-built rental homes and a minimum of 4,000 affordable rental homes1. Such developments are part of a concerted effort to make Toronto one of Canada’s most dynamic real estate markets.
Backed by over 20 years of experience, GTA-Homes provides invaluable guidance for individuals looking to buy, sell, or invest in new property developments in Toronto. Their expert advice and market insights empower investors to make well-informed decisions, ensuring successful outcomes in this bustling property market.
Key Takeaways
- The City of Toronto is set to develop 20,000 new rental homes, including 16,000 purpose-built rentals and 4,000 affordable rental units1.
- Incentives such as indefinite deferral of development charges and a 15% property tax reduction for 35 years are proposed for eligible projects1.
- GTA-Homes offers expert real estate guidance, helping confident decisions in Toronto’s dynamic property market.
- Toronto seeks $7.3 billion in low-cost financing from the federal government to aid affordable and purpose-built rental homes1.
- The city’s development initiatives are part of a strategy to make Toronto a prime destination for property investment.
Overview of Toronto’s Real Estate Progress in 2024
Toronto’s real estate landscape in 2024 saw significant growth, despite multiple challenges. The city witnessed a change in the dynamics of various sectors, bringing both hurdles and notable achievements.
Key Challenges Faced
The real estate development Toronto sector encountered several challenges. Rising costs and zoning disputes were significant hurdles that impacted Toronto real estate developers’ plans. Additionally, the industrial sector recorded $4.1 billion in transactions—a 24% decrease year-over-year, with an availability rate of 5.3%2. The office sector also faced difficulties, with $1 billion transacted, marking a 62% drop and an availability rate of 19.8%2.
Important Progress Made
Despite these challenges, substantial progress was achieved. Notably, the multi-family sector experienced a $1.8 billion volume, showing a 34% increase year-over-year2. The retail sector too saw growth, with $1.5 billion transacted, a 4% rise2. Furthermore, partnerships between public and private entities strengthened, leading to innovative real estate development strategies in Toronto. The city also reported significant residential land transactions, such as Empire Communities acquiring a 1.59-acre site in Etobicoke for $48 million2.
The demand for the best property developers Toronto surged, as indicated by the GTA home sales, which increased by 14% in October compared to the previous month and surged 44% year-over-year3.
Moreover, the condo market saw a notable rise in demand, with condo leasing activity increasing by 29% year-over-year in Q33. Such indicators suggest a resilient market adapting to changing economic climates.
Major Streets Policy and Mixed-Use Avenues Up-Zoning
The new Major Streets Policy, established to invigorate Toronto’s arterial roads with mid-rise developments and small-scale retail, represents a significant step forward in urban planning. These changes align with the city’s efforts to balance residential and commercial spaces, enhancing the urban experience for residents and businesses alike4.
Mid-Rise Buildings and Small-Scale Retail
Under this policy, mid-rise buildings up to six stories are allowed along designated arterial roads, bringing small-scale retail options at the ground level4. This initiative promotes a walkable urban environment, fostering community engagement and local commerce. By enabling Toronto real estate development along these corridors, the city expects a more vibrant and dynamic street life5.
As-of-Right Zoning for Mid-Rise Buildings
The As-of-Right Zoning initiative simplifies the approval process for mid-rise buildings, allowing their construction along Mixed-Use Avenues without the need for extensive rezoning applications4. This zoning policy permits building heights equal to the width of the adjacent road, usually translating to structures between six to eleven stories tall4. As part of this, the policy maximizes the development potential of Toronto’s major streets, contributing to a more efficient and streamlined Toronto real estate development process.
In addition, gentle density housing models like fourplexes and sixplexes will be streamlined with a federal design catalogue set to release in April 20254. These efforts are crucial in addressing the city’s housing needs by making mixed-use developments Toronto a more attainable reality.
Development of Government-Owned Land
In 2024, the focus on transforming government-owned land into mixed-income communities continued to gain momentum in Toronto. By implementing phased development models, the city is establishing mixed-income housing that promotes inclusivity and sustainability. These initiatives are integral to the city’s long-term plans for government land development Toronto, which addresses the housing crisis by utilizing public lands effectively.
Phased Development Models
Toronto’s approach to phased development models ensures gradual and strategic development of government-owned land. The government has announced plans to lease public lands to developers, reducing capital costs and expediting construction, which includes unlocking five federal properties for lease to build over 800 new homes across various cities6. Notably, Budget 2024 allocates a $500 million Public Lands Acquisition Fund for acquiring land aimed at mid-range housing6, and a $20 million investment in the Centre of Expertise on Disposals to streamline administrative processes for faster housing construction6.
Collaboration for Mixed-Income Communities
Collaboration is key to the success of these projects. The government has earmarked $15 million for developing a comprehensive public land bank and an interactive mapping tool to enhance planning6. It also aims to attract and train more skilled tradespeople to meet the demand for housing development6. The Federal Lands Initiative will receive an additional $117 million to release public lands for at least 1,500 new affordable homes6. Moreover, the urgent unlocking of federal properties is set to create over 800 new homes, with significant contributions in cities such as Ottawa, Montréal, Calgary, and Toronto7.
For more details, visit this link to explore the government’s plans and initiatives further.
Tackling Housing Affordability in Toronto
The issue of housing affordability in Toronto has been a significant challenge. Various federal housing initiatives have been introduced to address the crisis, focusing on creating more affordable rental units and improving overall housing conditions within the city. Two of the most impactful initiatives are the Federal Housing Supply Initiatives and the National Housing Fund, both aimed at increasing housing accessibility in partnership with municipalities.
Federal Housing Supply Initiatives
Through the Federal Housing Supply Initiatives, Toronto is expected to see accelerated construction of affordable rental units, targeting a staggering goal of 65,000 new rent-controlled homes by 20308. Furthermore, an essential part of this push includes the Rental Housing Supply Program, which promises a streamlined process for developing mid-rise buildings along major corridors in the city8. The combination of these federal efforts is critical to mitigate the shortage of affordable housing and to meet the high demand of the city’s growing population.
National Housing Fund
The National Housing Fund has played a pivotal role in Toronto’s efforts to improve housing affordability. This fund works to lower rents and finance affordable housing projects, significantly impacting the available supply9. For instance, the West Don Lands project by Dream Unlimited, in collaboration with Tricon Residential and Kilmer Group, dedicates 25% of its units to affordable housing9. Similarly, in Ottawa, Dream’s affordable development under the National Capital Commission (NCC) will provide up to 41% affordable housing, highlighting the program’s substantial contributions9. The success in Ottawa sets a precedent for what could be achieved in Toronto as well.
The investment in affordable housing projects has proven beneficial in other cities. For example, Vancouver has over 2,000 units of small-scale housing developed since 2009, which has considerably increased the supply of affordable homes despite the high market prices8. Such successes provide a blueprint for Toronto as it embarks on similar initiatives supported by the National Housing Fund and other federal programs.
Impact of Public Transit and Bike Lanes Developments
The expansion of Toronto public transit development and the addition of bike lanes Toronto signify the city’s commitment to sustainable development. The benefits of these initiatives are multifaceted, extending far beyond mere infrastructure improvement. Promoting a greener, more active lifestyle, these measures also address pressing safety concerns on the streets.
A notable aspect is the financial implications associated with these developments. The removal of existing bike lanes could lead to an estimated $48 million in additional costs to provincial taxpayers and a lost investment of $27 million in city costs incurred to install the current infrastructure10. Additionally, safety remains a critical factor, with 28 people killed and 380 seriously injured while cycling in Toronto from 2015 to 2024, and 68% of these collisions occurring on streets without safe cycling accommodations10.
On the brighter side, the percentage of customers cycling to Bloor Street almost tripled from 7% to 20% after introducing bike lanes, in contrast to Danforth Avenue where no bike lane was present11. Walking has remained the most popular travel choice for visitors on Bloor Street, used by nearly half (48%), while driving was the least favored at 10%11. Interestingly, perceptions regarding safety also improved, with the proportion of visitors regarding Bloor Street as safe for cycling more than tripling from 17% to 61% after bike lane installation11.
Despite the positive feedback from the public, a significant portion of the city’s population did not support bike lanes on major arterial roadways12. Opposition often stems from concerns over the influence of cycling advocacy groups on city policy and the perceived conflicts of interest12. The Keep Toronto Moving organization advocates for data-driven decisions regarding bike lane placements, aiming for a balanced approach that considers the needs of all residents, including cyclists, drivers, and local businesses12.
Highlighting these conflicting viewpoints underscores the need for ongoing discussions around bike lanes in Toronto. By fostering diverse perspectives and constructive dialogue, Toronto can develop policies that truly reflect the city’s commitment to sustainable urban development.
Aspect | Impact | Source |
---|---|---|
Financial Costs for Bike Lane Removal | $48 million additional costs | 10 |
Lost Investment | $27 million | 10 |
Cyclist Deaths and Injuries (2015-2024) | 28 deaths, 380 injuries | 10 |
Safety Perception Post-Bike Lane | 17% to 61% increase | 11 |
Customer Cycling Percentage on Bloor | 7% to 20% increase | 11 |
New Pre-Construction Condos for 2025
Exciting opportunities await prospective homeowners and real estate investors with the announcement of new pre-construction condos set for completion in 2025. These developments promise modern amenities, strategic locations, and competitive pricing, positioning them as a top choice for buyers. A total of 23 new pre-construction condos in Toronto are scheduled to be completed in 2025, with prices starting from $390,900 to the high $900s13
Developers such as Minto Group, Mattamy Homes, and Menkes are leading these upcoming property developments Toronto, which spans diverse neighborhoods from North York to the Waterfront13. Mattamy Homes holds the most listings, boasting four developments, an impressive testament to their influence in Toronto’s real estate market13.
The total number of units across all developments is 9,182, with an average of 399 units per development, showcasing a broad range of investment options13. Some of the standout projects include Encore Festival Condos with 1,800 units and Forêt Condos with 1,000 units, highlighting the diverse scale of these ventures13.
From high-rise towers like the Sky Tower at Pinnacle One Yonge Condos starting at $1,269,900 to more affordable options like Craft Residences priced from $496,990, the variety of price points ensures that there’s something for every investor and prospective homeowner14. The high-demand areas like Downtown and West Toronto have seen substantial sales, exemplified by JAC Condos and 8 Wellesley Condos selling out well before their completion dates14.
This flurry of pre-construction condos Toronto within the upcoming property developments Toronto signifies a vibrant real estate landscape. With an average of 27.5 stories per development, these projects cater to various tastes and needs, from sky-high luxury living to intimate, community-centered residences13. Investment opportunities are multifaceted, offering potential for personal occupancy, resale, or rental purposes, making these condos a valuable addition to any real estate portfolio15.
Commercial Property Developments Toronto
Toronto’s commercial property landscape is evolving rapidly, with a surge in new developments to meet the growing economic demands. The city is known as the economic capital of Canada, housing the second largest stock exchange in North America and serving as a hub for numerous high-tech firms and film production companies16.
Upcoming Commercial Spaces
Several key projects are set to enhance Toronto’s commercial infrastructure, creating opportunities for both startups and established companies. Oxford Properties has secured one of Toronto’s largest office leases, maintaining the EY Tower at 100% occupancy17. This reflects the intense demand for quality office spaces, driven by the city’s robust tech talent growth and economic resilience.
Major Commercial Projects
Toronto’s office market is poised for its first positive net absorption year since 2019, with significant demand evident across multiple sectors16. Notable projects include Northcrest Developments’ Downsview Airport initiative and other urban regeneration plans designed to support long-term growth.More insights on Toronto’s property developments The development landscape is characterized by collaborative ventures aiming to build sustainable, healthy communities, thus elevating the market expectations17.
A notable example is CBRE’s Toronto Downtown Office at 145 King Street West, which serves as the head office for Canadian operations16. Additionally, quality retail spaces are in short supply, which has led to rising rents as landlords navigate inflation, higher interest rates, and property tax increases16. These dynamics underscore the diverse and thriving nature of commercial property developments in Toronto, making it a prime location for property investment.
Residential Property Development Toronto
As Toronto continues to grow, the best property developers in Toronto are pioneering new residential communities and key projects. These developments are strategically designed to enhance living standards, providing a blend of luxury accommodations and more affordable housing options. This approach ensures diverse homeowner needs are met, optimizing accessibility to amenities and public services.
New Residential Communities
One of the major initiatives in residential property development Toronto is the creation of master-planned, mixed-use communities. For instance, a significant project is underway at the Scarborough GO Station by Harlo Capital and their partner, which aims to develop a thriving, interconnected community that maximizes convenience and accessibility18. Additionally, the initiative to develop an 18-storey condominium building with retail spaces on a 0.53-acre property at Bathurst Street and Richmond Street West exemplifies the commitment to integrating residential and commercial spaces seamlessly18.
Key Residential Projects
Several key residential projects are on the horizon, reflecting the expertise of the best property developers Toronto. For example, the redevelopment of a 44-storey mixed-use project in Yonge and Eglinton, including a 312,000-sf condominium and a place of worship on a 1.05-acre church property, showcases innovative use of urban space18.
Another notable project is a 494-unit, 350,000 sf condominium in downtown Kitchener, which became the tallest approved building in Kitchener upon completion18. Meanwhile, the Leaside neighborhood is witnessing the development of a 46-storey, 419-unit residential condominium on a 0.35-acre parcel of land18. Such developments highlight the commitment to meeting the growing demand for housing while maintaining high standards of living.
Further illustrating the dynamic landscape of residential property development in Toronto, a 43-storey, approximately 549-unit residential condominium project is being rezoned on a 0.69-acre parcel of land in south Etobicoke by Harlo Capital and partners18. These projects are further testament to the innovation and strategic planning that define Toronto’s residential development sector.
An 11-storey, 174-unit, 116,000-sf condominium project in the Bayview and Sheppard area is another example of targeted residential development18. Similarly, Harlo Capital and a partner are developing a 198-unit, 182,000-sf mid-rise condominium complex in Leaside, demonstrating a balanced approach to mid-rise and high-rise urban living18.
Harlo Capital and its partner, with 70 years in business, manage an impressive 11.5 million sq. ft. and have built over 50 million sq. ft. across various projects, serving more than 150 tenants and employing over 500 individuals19. For more details on these exciting residential projects, interested individuals can register and learn more about the upcoming initiatives.
Property Developments Toronto: Trends and Predictions
As we look towards the future property developments Toronto has to offer, several key trends are expected to shape the landscape. One significant trend is the move towards sustainability and resilience, addressing the dual challenges of climate change and housing affordability. According to industry sentiment, there is a growing concern for the long-term resilience of real estate due to the increasing frequency and severity of natural disasters20. This focus on sustainability is likely to drive innovations in Canadian homebuilding, particularly in the Toronto real estate market.
Another prominent trend involves technological advancements, particularly the integration of smart home technologies. These advancements are becoming increasingly widespread, offering enhanced energy efficiency and security features that are highly attractive to modern homebuyers. Additionally, the condo market in Toronto is facing challenges, especially for developments led by smaller companies with fewer financial resources20. This shift emphasizes the importance of technological integration to remain competitive.
Mixed-use developments are also gaining traction, merging residential, commercial, and recreational spaces to create vibrant, lived-in communities. The City of Toronto’s Official Plan directs significant growth towards areas such as Avenues, Centres, Downtown, Mixed Use Areas, and Employment Areas21. This strategic growth enables better utilization of space and resources, aligning with modern urbanization trends.
Looking at the data, large-scale projects outside Downtown and Urban Growth Centres contain 102,425 proposed residential units and 3,958,000 square meters of non-residential gross floor area21. Moreover, most new residential development (79%) occurs in areas targeted for intensification by the City’s Official Plan21. This level of detailed planning is critical for successfully navigating the future property developments Toronto will experience.
For a more comprehensive look at these trends, including an in-depth analysis of the current state and future predictions, you can read the full article on real estate predictions in the Greater Toronto Area21. This information is indispensable for both buyers and sellers aiming to make informed decisions in this dynamic market.
Conclusion
Toronto continues to shine as a beacon of innovation and growth in the real estate sector. With the metro area home to approximately 6.7 million people, opportunities to invest in Toronto real estate have never been more compelling22. Despite challenges such as high house listings in the Greater Toronto Area (GTA) and a drop in condominium sales, strategic policies and targeted action plans aim to address these issues22.
Key initiatives, like the Housing Action Plan, set ambitious yet achievable targets, including the approval of 40,000 new affordable rental homes and 18,000 supportive housing units by 203023. The City Council’s commitment to unlocking 20,000 new rental homes, alongside collaboration for government financial incentives, underscores the vast Toronto development opportunities available22. Additionally, the reduction in condo construction and price drops present prospective buyers with unique investment openings24.
For investors, residents, and developers, the landscape in Toronto is vibrant and dynamic. The ongoing developments and incentivized policies promise sustainable growth. As the Bank of Canada lowers its policy rate, and with a consensus for subdued price growth over the coming years, the market shows signs of stabilization22. To delve deeper into the specifics, the full report on Toronto’s housing crisis and strategic plan offers a detailed roadmap, accessible here. Indeed, the stage is set for Toronto to remain a prime destination for real estate development in 2025 and beyond.
FAQ
What new property developments are expected in Toronto by 2025?
By 2025, Toronto will see groundbreaking property developments including both residential and commercial spaces. These developments will feature modern amenities, innovative architectural designs, and strategic locations to enhance accessibility and appeal.
What were the key challenges in Toronto’s real estate market in 2024?
Throughout 2024, significant challenges included zoning disputes and rising costs. However, the city made progress in improving housing affordability and land use efficiency by fostering partnerships and implementing innovative strategies.
How will the Major Streets Policy impact new developments in Toronto?
The Major Streets Policy aims to activate arterial roads with mid-rise developments and small-scale retail. This policy facilitates quicker construction turnarounds, revitalizing neighborhoods and making them more attractive for businesses and residents.
What is “As-of-Right Zoning” and how does it benefit developers?
As-of-Right Zoning allows for the automatic approval of certain mid-rise building developments, reducing bureaucratic delays and helping developers expedite construction projects. This policy is expected to increase the vibrancy of Toronto’s neighborhoods.
How is government-owned land being utilized for development in Toronto?
Government-owned land is being transformed into mixed-income communities through phased development models. These efforts are in collaboration with various stakeholders to ensure inclusivity and sustainability in new communities.
What initiatives are in place to tackle housing affordability in Toronto?
Initiatives like the Federal Housing Supply Initiatives and the National Housing Fund aim to make housing more affordable. These programs partner with municipalities to facilitate the construction of affordable units by leveraging federal resources for financing and planning.
How will public transit and bike lane developments impact Toronto’s property market?
The expansion of public transit options and the addition of new bike lanes reflect a commitment to sustainable development. These improvements enhance infrastructure and promote a greener, more active lifestyle, making neighborhoods more desirable for residents and investors.
What can prospective buyers expect from the new pre-construction condos in 2025?
The new pre-construction condos set for 2025 completion promise modern amenities, competitive pricing, and strategic locations. These features make them an attractive option for both homebuyers and real estate investors.
What major commercial property developments are underway in Toronto?
Toronto’s commercial real estate scene is expanding with several major projects catering to startups, established companies, and retail businesses. These developments are designed to support economic growth and provide versatile environments for business operations.
What trends are shaping the future of property development in Toronto?
Key trends include a heightened focus on sustainability, technological integration in smart homes, and an increasing interest in mixed-use developments. These elements are expected to significantly influence Toronto’s real estate landscape in the coming years.
Source Links
- https://www.toronto.ca/news/city-of-toronto-staff-report-aims-to-unlock-20000-new-rental-homes-immediately-kick-starting-process-to-create-7000-new-rental-homes/
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- https://www.pwc.com/ca/en/industries/real-estate/emerging-trends-in-real-estate.html
- https://www.toronto.ca/city-government/data-research-maps/research-reports/planning-development/development-pipeline/
- https://www.mortgagesandbox.com/news/torontos-property-market-a-delicate-balance-of-demand-supply-and-uncertainty
- https://www.toronto.ca/legdocs/mmis/2023/ex/bgrd/backgroundfile-234815.pdf
- https://financialpost.com/real-estate/great-toronto-condo-boom-finally-hit-wall