Montreal Drives Market Activity

Quebec’s real estate market in 2025 is largely influenced by Montreal, the province’s largest city and economic hub. The Quebec Professional Association of Real Estate Brokers (QPAREB) reports a 4.0% increase in home sales in February, with strong demand for condominiums and single-family homes in neighborhoods like Plateau-Mont-Royal, Rosemont–La Petite-Patrie, and the suburbs of Laval and Longueuil.

Montreal’s diverse economy, including finance, technology, and education sectors, supports sustained housing demand despite rising prices and affordability challenges.

Build-to-Rent Communities Gain Popularity

Build-to-rent (BTR) developments are emerging in Montreal and other Quebec cities such as Quebec City and Sherbrooke. These communities cater to renters who seek flexibility and modern amenities, attracting millennials, professionals, and retirees alike.

Yardi Matrix highlights Quebec as a growing market for BTR units in 2025, with new projects emphasizing community living and sustainability.

Growing Interest in Secondary Markets

While Montreal remains the centerpiece, secondary markets like Quebec City, Gatineau, and Sherbrooke are attracting investors looking for more affordable real estate and stable rental demand.

Quebec City’s historic charm and government presence continue to support the local market, while Gatineau benefits from its proximity to Ottawa and a growing tech sector. Sherbrooke, a university town, sees steady rental demand fueled by students and staff.

Mortgage Rates and Affordability

Mortgage rates in Quebec are expected to stabilize around 6% in 2025, with inflation easing to 2.8%. Quebec generally maintains lower property prices compared to other provinces, providing better affordability, especially in secondary cities and suburbs.

However, Montreal’s rising prices and limited inventory create challenges for first-time buyers, increasing interest in rental housing and BTR options.

Commercial Real Estate Trends

Montreal’s commercial real estate is adapting to changes in demand, with elevated office vacancy rates downtown offset by growth in suburban office parks and flex spaces.

Industrial real estate remains strong, particularly in the Montreal metropolitan area, driven by e-commerce and logistics growth. Retail real estate is also shifting, with mixed-use developments gaining popularity.

REITs and Passive Investment Opportunities

Investors seeking indirect exposure to Quebec’s real estate market can consider REITs focused on multifamily housing and industrial assets. National funds like the Vanguard Real Estate ETF (VNQ) offer diversified exposure, including properties in Quebec’s growing sectors.

Local investment funds also provide opportunities focused on Quebec’s unique market dynamics, particularly in rental housing and commercial properties.

What to Watch in Quebec Through 2025

Key factors shaping Quebec’s market include:

• Immigration and demographic shifts influencing housing demand
  
• Provincial housing policies aimed at increasing affordable housing stock
  
• Infrastructure investments improving connectivity, particularly around Montreal and Quebec City
  
• Environmental regulations impacting development in urban and rural areas
  

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