Executives surveyed in the report ranked Calgary as the city with the strongest real estate prospects for 2026
Canada’s real estate sector entered 2026 in a state of reinvention, with industry leaders betting on cross-industry partnerships and private capital to drive the next wave of growth.
The latest Emerging Trends in Real Estate (ETRE) report from PwC Canada and the Urban Land Institute (ULI) painted a picture of a market adapting rapidly to shifting capital flows, policy momentum, and evolving demand.
Executives surveyed in the report ranked Calgary as the city with the strongest real estate prospects for 2026, outpacing Toronto and Edmonton.
“Calgary remains a standout, with policy agility and supply delivery driving momentum,” said Richard Joy, executive director at ULI Toronto.
Purpose-built rental and new construction models gain ground
With housing affordability still a national concern, developers have pivoted from condos to purpose-built rental, leveraging Canada Mortgage and Housing Corporation (CMHC) programs and municipal incentives.
“Rents have softened in some urban areas as supply arrives, but mid-market and family-sized units remain scarce and in demand,” the report noted.
Industry leaders also highlighted the rise of prefabricated and modular construction methods, which could accelerate new home supply if financing and policy frameworks adapt.
“New models like equipment and inventory finance, bulk procurement, and streamlined codes are critical to scale beyond pilots,” the report stated.
Private capital fills funding gaps as traditional channels slow
As bank debt and traditional equity have tightened, private capital—particularly from private REITs, family offices, and private debt funds—has stepped in to bridge the gap.
“With traditional capital channels constrained, private capital and private debt are decisively filling the void. This shift is fuelling innovative business models and unlocking value in key growth areas like student housing, medical offices, and other alternative sectors,” said Fred Cassano, partner and national real estate leader at PwC Canada.
Technology and alternative assets reshape the market
Artificial intelligence is moving from pilot projects to real-world performance, streamlining leasing, pricing, and maintenance. Quebec’s Law 25 has set a new standard for data governance, while AI-driven agent platforms are compressing transaction timelines and raising the bar for privacy and compliance.
Meanwhile, asset classes such as grocery-anchored retail, seniors’ housing, and medical offices are gaining momentum, reflecting demographic and policy shifts.
As Cassano put it, “Canadian real estate is at a pivotal moment—policy momentum is building, and the sector’s ability to collaborate across industries is opening doors to new opportunities. By embracing new approaches and partnerships, we have a tremendous opportunity to build the spaces our communities need and unlock growth throughout the market.”
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