Canada’s safe-haven status and tight supply are fueling renewed investor interest
Global capital is flowing back into real estate, with Canada emerging as a top destination for investors seeking stability and yield in 2026.
According to Colliers’ 2026 Global Investor Outlook, institutional players who had stepped back during recent market turbulence are returning, drawn by Canada’s resilient fundamentals and persistent supply constraints.
“Lenders are still very much open for business for the right product, and fundraising on the equity side is improving but we’re still below prior peaks,” said Reid Taylor, senior vice president, Capital Markets, Colliers Canada.
“Following a lull in transaction activity in 2025, a lot of dry powder has been sidelined but pressure to deploy remains, which bodes well for investment activity to improve next year.”
Investors shift strategies and diversify globally
The report highlighted a decisive shift in investor strategies, with nearly half now favouring direct investments and separate accounts over traditional funds.
Platform joint ventures and M&A are gaining traction, while private equity is increasingly targeting both property-owning entities and operating businesses.
“This imbalance is prompting investors to rethink how they engage with the market, choosing structures that offer faster execution, flexibility and scale,” said Damian Harrington, director, head of research, Global Capital Markets and EMEA at Colliers.
Canada’s appeal is underpinned by strong demographics and a supply environment tighter than most global peers.
“It’s not easy to develop here, which means we’re much less overbuilt in basically every asset class,” said Adam Jacobs, head of research, Colliers Canada.
“The limited development outlook supports the argument for investing in Canada, because in many areas there’s a fairly clean slate without competition.”
Sector trends: Multifamily, retail and industrial in focus
Multifamily investment volumes in Canada rose over 20% in 2025, with expectations for another active year as rental demand stays strong in cities like Toronto, Calgary and Ottawa.
Retail, particularly grocery-anchored and necessity-based centres, remains a core focus for institutional investors due to consistent income profiles and scarce new construction.
Industrial and logistics assets continue to perform well, especially in urban infill and small- to mid-bay facilities.
Institutional capital is also showing signs of reactivation, especially among Canadian pension funds and major landlords.
Many are shifting from development-heavy strategies toward stabilized, income-producing assets and platform-level partnerships.
Public-to-private opportunities are expanding, with several REITs trading below NAV and strategic buyers exploring privatizations and joint ventures.
Broader market context and outlook
Prime minister Mark Carney cautioned that the Canadian economy could shrink by nearly 2% in the coming years if growth fails to keep pace, largely due to the ongoing impact and uncertainty of United States tariffs. Despite this, Canada’s fundamentals remain supportive.
Population growth continues to outpace most advanced economies, and persistent housing undersupply keeps multifamily demand elevated.
As financing conditions improve and interest rates normalize, both domestic and international investors are preparing to re-enter the market in a more meaningful way. The year ahead is expected to reward investors who can combine speed with strategy.
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