High interest rates, changing immigration and interprovincial migration trends, and regional economic shifts are reshaping where and how property investors are finding success. Whether new to real estate or growing your portfolio, this year could present opportunities for growth if you know where to look.

Whether you’re eyeing cash flow, long-term appreciation, or short-term rental potential, here’s a look at some of the best places to invest in Canadian real estate in 2025 and why they’re worth your attention.

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Key Takeaways

• Define your investment goals to determine the right property and location to invest in.
• Market demand can significantly impact investment potential.
• Affordable markets offer more opportunities for price appreciation.

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What to Look for When Investing in Real Estate in Canada

A few things can make or break your investment when evaluating real estate opportunities in Canada. Location remains the golden rule, but it’s not just about being in a big city. Look for areas with strong population growth, economic development, and infrastructure projects. 

Cities attracting students or remote workers tend to have higher rental demand and long-term appreciation potential. Research local vacancy rates, average rent prices, and job market trends to ensure the area supports your investment goals, cash flow, appreciation, or both.

Additionally, consider local bylaws, zoning regulations, and landlord-tenant laws, as these can vary widely across provinces and municipalities. For example, some cities ban or restrict short-term rentals like Airbnb, while others support secondary suites and multi-family developments.

Identifying the Purpose of Investing in Real Estate 

Before you invest in real estate, it’s essential to determine your purpose. Your purpose will directly influence the type of property you should purchase and the markets you target. 

Are you investing to live in the property and have monthly cash flow? Are you aiming to generate passive income from a rental property? Is your long-term goal appreciation where you hold onto a property to sell for a profit down the road? 

Some investors may want to focus solely on diversifying their portfolios and use investing in real estate as a tax advantage. Others may invest in real estate to generate income in retirement or build generational wealth. Understanding your investment goals can help you assess your risk tolerance and time horizon. 

Defining why you want to invest in real estate from the start can help guide the type of property you should choose and what financing is required. It can allow you to develop an exit strategy that aligns with your broader financial objectives. 

Top Places to Invest in Real Estate in Canada

Each province offers a unique opportunity, depending on your investment goals. While some cities are ideal for generating steady cash flow, others show strong potential for long-term appreciation. Here are some cities in Canada that real estate investors should keep on their radar this year.

1. Calgary, Alberta

Calgary remains a hot spot for investors thanks to its affordable housing and increase in interprovincial migration. While much of Canada struggles with high home prices, Calgary remains one of the most affordable housing markets. 

Population: 1,457,222

Average Home Price: $576,800

Average Monthly Rent: $1,916

2. Moncton, New Brunswick

Moncton boasts some of Canada’s lowest average home prices and has a growing demand for rental housing. The real estate market is growing steadily in Moncton, allowing investors to take advantage of property values that continue to lag behind other locations. 

Population: 103,405

Average Home Price: $359,000

Average Monthly Rent: $1,242

3. Edmonton, Alberta

Edmonton has seen robust economic growth while having an affordable housing market. The city’s economy is diversifying to include technology, healthcare, and renewable energy sectors. This has led to a surge in population growth as many interprovincial migrants come to the city to take advantage of a lower cost of living. 

Population: 1,137,000

Average Home Price: $421,800

Average Monthly Rent: $1,531

4. Windsor, Ontario

Windsor has seen strong demand thanks to its relative affordability and proximity to the US border. This city is a major manufacturing epicentre, and many tourists pass through since it has a major border crossing. Its proximity to the border supports a cross-border workforce with residents who live in Canada and work in the US.

Population: 257,000

Average Home Price: $551,048

Average Monthly Rent: $1,620

5. Halifax, Nova Scotia

Halifax has seen property appreciation over the past few years as interprovincial migration to lower-cost-of-living areas picked up. Although the market has cooled, Halifax remains an area still attracting buyers, but with few homes on the market, there is increased competition. 

Population: 502,008

Average Home Price: $561,400

Average Monthly Rent: $2,277

6. Ottawa, Ontario

Canada’s capital remains in constant demand thanks to the many government jobs, colleges, and universities, including Univerisité d’Ottawa and Carleton University, which are located in the city. The housing market in Ottawa has remained relatively stable, but housing remains in constant demand due to federal employees and a large student population. 

Population: 1,138,189

Average Home Price: $683,811

Average Monthly Rent: $2,217

7. Montréal, Québec

Montreal boasts lower real estate prices than major Canadian cities like Toronto and Vancouver. With easy access to transportation hubs and home to major universities like McGill, Université de Montréal, Université de Laval, Concordia, and UQAM, housing in the area is in constant demand. 

Population: 1,762,949

Average Home Price: $562,300

Average Monthly Rent: $1,974

8. Oakville, Ontario

Oakville is part of the Greater Toronto Area (GTA) and is a rapidly growing city due to its proximity to Toronto. The city is relatively quiet and has a low crime rate compared to its population, which continues to draw in families and professionals. While the average home price is high, the area still offers investors more affordable housing options than Toronto. 

Population: 237,995

Average Home Price: $1,246,700

Average Monthly Rent: $2,289

9. Toronto, Ontario

While Toronto may not be the most affordable city in which to invest in real estate, the market is constantly thriving. The city has strong population growth and a robust economy, with many corporate head offices downtown. Toronto also has many colleges and universities, including the University of Toronto, Toronto Metropolitan University (formerly Ryerson) and York University, which attract a large student population. 

Population: 3,025,647

Average Home Price: $1,073,900

Average Monthly Rent: $2,615

10. Vancouver, British Columbia

While Vancouver is the least affordable city on the list, the area is consistently ranked among the world’s top 10 most liveable cities. Vancouver boasts two large universities, the University of British Columbia (UBC) and Simon Fraser University (SFU). The tourism industry is the second largest contributor to the local economy. The area boasts mild temperatures all year, making it the ideal spot for interprovincial migrants and snowbirds looking to escape harsh winters. 

Population: 2,463,431

Average Home Price: $1,185,100

Average Monthly Rent: $2,870

Frequently Asked Questions (FAQ) About Best Places for Real Estate Investing

Where Should You Invest?

The best place to invest in 2025 depends on your personal strategy, risk tolerance, and financial goals. Whether looking for a forever home that can generate additional income, chasing appreciation in a growing urban centre or looking for steady cash flow in smaller cities, the Canadian housing market still offers real opportunities if you know where to look. 

Are you looking to add income properties to your investment portfolio? Contact nesto mortgage experts and find the advice and guidance you need to move forward with your purchase.

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