Opportunity Landscape

Why Canadian Real Estate Construction and Development?

Stable economy.  Sustained demand.  Significant opportunity.

Our niche market has experienced strong demand for new developments, record residential sales, and growing housing prices – a significant opportunity for all types of capital participation.

Residential sales continue to break records in Ontario

+8.7%

increase in year-over-year Ontario residential sales 2020YTD

Canadian housing prices continue to grow

+17.1%

increase in year-over-year national average residential price in Dec 2020

Ontario’s population expected to keep growing

Population growth

Ontario’s population expected to grow by as much as 31.5% by 2046

MarshallZehr focuses on the Ontario construction and development market, addressing the province’s need for new residential construction to meet the demand for housing.

Specifically, we specialize in transformative projects (ground-up and value-add) across multiple build types, focusing on generating risk-adjusted returns.  MarshallZehr tailors and scales to match capital sources with opportunities that meet their mandate (including objectives, risk profiles, and tax implications).

Key Driving Factors:

Demand for housing remains as strong as ever

Demand for housing remains as strong as ever

Low inventory and a strong appetite for affordable housing continues to increase prices.

Population growing faster than homes being built

Population growing faster than homes being built

Demand is driven by population changes and immigration, outpacing the building of new housing supply.

Transportation expansion is key priority

Transportation expansion is key priority

Ontario has extensive plans to continue developing and expanding regional transportation options.

ESG plays a significant role in the market

ESG plays a significant role in the market

Environmental protection is a key force within the Ontario construction and development landscape.

COVID-19 having minimal impact on progress

COVID-19 having minimal impact on progress

Developments and sales efforts continue to successfully progress with the appropriate safety measures in place.

Among the best G20 countries to do business with

Canada remains a leader in economic growth and political stability, with a well educated workforce 1.  In fact, Canada is projected to continue to be the best country in the G20 for doing business through to 2025, having consistently ranked among the top 3 for the last five years2.  Our banking system is one of the soundest in the world, ranking second within the G20 and sixth among 141 countries2.

In particular, Toronto Ontario is a significant global financial hub, including the Greater Toronto Area within southwestern Ontario.  Toronto is the fourth most populous city and the second-largest financial centre in North America, behind only New York3.

Over $63B invested in Ontario Construction and Development

The Canadian construction industry is the fifth-largest construction market in the world4, employing approximately 1.2 million people across Canada – approximately 7% of the national workforce5.

The construction and development market in Ontario has shown strong and sustained demand, especially in the residential sector where there continues to be high demand and low supply for housing.  Over $63B CAD was invested in construction and development in Ontario between January and November 2020, with over $43B CAD of that invested in residential building construction6.

 – https://creastats.crea.ca/board/orea

‡ –https://www.fin.gov.on.ca/en/economy/demographics/projections/#:~:text=Ontario’s%20population%20is%20projected%20to,million%20by%20July%201%2C%202046

1 – https://www.cibcmellon.com/en/_locale-assets/pdf/our-thinking/ot2014-2016/ot201509-invest-canada.pdf
2 – https://www.international.gc.ca/trade-commerce/assets/pdfs/economist-economiste/analysis-analyse/key_facts-2020-12-faits_saillants-eng.pdf
3 – https://www.conferenceboard.ca/research/the-impact-of-toronto’s-financial-sector?AspxAutoDetectCookieSupport=1
4 – https://www.mgac.com/blog/wp-content/uploads/2018/11/2018-Toronto-Construction-Market-Snapshot-MGAC.pdf
5 – https://www.randstad.ca/job-seeker/career-resources/working-in-canada/trends-in-canadas-construction-industry/
6 – https://www150.statcan.gc.ca/t1/tbl1/en/cv.action?pid=3410017501