Canadian real estate’s great divide: One market booming while the other crashes

Canadian office real estate is improving as workers return to offices, with vacancy rates dropping nationally from 18.7% to 18% and a nearly 3% decrease in downtown Toronto. No new office construction is expected, supporting further vacancy declines. However, the condo market is struggling due to tighter immigration policies reducing demand, causing prices to fall, especially in Greater Vancouver, with more declines expected in 2026.