Canada’s economy recorded a 27-month low inflation (2.8%) in June of 2023. This is the lowest inflation rate since March 2021. This was occasioned by lower energy prices. Food and housing costs are still on the rise despite several interest rate hikes by the central bank. The uncertainty about the economy has driven many Ontarians and Canadians to shy away from leaving their savings in banks in favour of assets like real estate.

Canadians are making long-term real estate investments due to real-estate’s ability to hold value and generate wealth. The exploding population, especially from immigrants, is also keeping demand high. Although home prices came down in some areas in 2022, real estate investment in Ontario is still relatively unaffordable, and there are still many investment opportunities available.

It may be a cliché, but location remains one of the most important considerations when buying real estate. A good real estate investment is one that has a high composite benchmark home price, CREA national ranking, neighbourhood ranking, and qualitative factors like accessibility (bike, walk, and transit scores), amenities, and the percentage of homes with children. These are the factors people often look at when buying or leasing a home, and you should, therefore, pay close attention to them because they show you the best places to invest in real estate in Canada.

Factors to Consider When Investing in Real Estate

Canada is experiencing a mushrooming population, especially from immigrants, and a housing deficit. This, plus the deductions and other tax advantages you stand to enjoy with real estate investments, makes Canadian real estate attractive to both domestic and foreign investors. Below are the factors long-term investors are considering when investing in the Canadian real estate market, which will help you determine if this is indeed the best place to invest in real estate in the world.

Political and Economic Stability

Canada is one of the most politically stable countries in the world, ranking 2nd among the G7 countries. This political stability, the safety level, and the high quality of life are the reason Canada attracts so many immigrants. Canada’s economy is also relatively stable, despite the high inflation experienced since 2021, but that is now easing. So, is 2023 the best time to invest in real estate? According to June 2023 data, inflation stood at 2.8%, so 2023 is a good time to consider investing in real estate.

When considering long-term real estate investment, you should be looking at such economic factors as mortgage availability, regional and national economic conditions, population growth, the job market, and taxes.

Population Growth

Is it worth investing in real estate in Canada? It is all a matter of supply and demand. A 2-bedroom condo in Vancouver or Toronto goes for between $600,000 and $800,000, so not everyone can afford to be an investor. Canada’s population has been growing at a very fast rate, with a growth of 1,050,110 in 2022. The +2.7 growth rate is the highest rate on record since 1957. International migration is responsible for 96% of the growth rate. The growing population makes real estate investment a smart option.

Property Taxes

Capital gain taxes are applicable when you sell real estate in Canada, which are basically taxes on the profits. You can save on the capital gains if you, or a member of your family, lives in the building. You will need to report rental incomes and the associated expenses, even when you report a loss. However, it is not all doom and gloom.


Location remains one of the most important factors when investing in real estate. Other than population, location also has an impact on property values and rental property demand. Consider future development plans if you are a long-term investor. Other than the bigger cities like Toronto, other areas and best cities to invest in real estate in 2023 Canada are Greater Moncton, Durham Region, Vancouver Island, Huron Perth, Rideau St. Lawrence, and Windsor Essex.


Different provinces and territories have various regulations when it comes to real estate. Familiarize yourself with these regulations before going for real estate investment in Canada. There are also regulations specific to homeowner associations.

Investment Type

There are different types of real estate investments, and you should go for the one that best suits your particular needs. With value investing, you identify an undervalued property with great potential with the aim of making a killing in the future. With Growth Investing, you target areas that are likely to experience rapid economic growth, property demand, or population growth. With income investing, you are looking at a property that will start bringing in rental income as quickly as possible. Finally, with Socially Responsible Investing or SRI, you are making environmental, social, and ethical considerations over and above profits. So if you are wondering how to invest in real estate with no money in Canada, a good option is taking a loan and doing income investing so you can use the proceeds to repay the loan.


Political and Economic Stability

Population Growth

Property Taxes



Investment Type

Top Cities for Real Estate Investment in Canada

When looking for real estate to invest in, you want a location that is growing fast or one that is already developed for guaranteed high rental yields. So, which are the investment destinations for top real estate investors in Canada?

Where real estate is booming in Canada: A Look at Ontario


North Bay
composite benchmark price
price increase
90% over 3 years
Sault Ste. Marie
affordable housing
the area has
lakes, rivers, and outdoor spaces
tech hub with
88,000 new jobs
allows for
tiny houses, backyard homes, and laneway suites
increase in households in 2011 – 2021
the population is expected to increase by
over 92% by 2051
Durham Region
average home price
the area has
parks, cultural centres, recreational spaces and an art hub
Hamilton, ON
student population
the area has
17-stop light rail line and upcoming developments
Niagara Region
low vacancy rates at
agricultural and entertainment hub

Ontario is the most populous province in Canada, with over 14,000,000 residents. The high population of Ontario can be attributed to the more moderate climate and the more arable land. Ontario also has a vast transport network (land, water, and air), is in close proximity to populated areas of the Midwestern and North-eastern U.S. and is home to Canada’s capital city. The Greater Toronto Area (GTA), made up of the City of Toronto and the Regional Municipalities of Durham, Peel, Halton, and York, has a population of over 6 million residents. By far the most populous metropolitan area in Canada. So, which are the best places to invest in real estate in Ontario?

Durham Region

Bordering Lake Ontario in the Greater Toronto Area is Durham Region, a great option for those looking to invest by the water or near a park. Durham Region, also called the Regional Municipality of Durham, is made up of 8 municipalities, namely Ajax, Clarington, Brock, Pickering, and Oshawa. The area has a population of about 700,000. The average home price was $874,456 as of December 2022, having fallen from a high of $1,228,990 in February 2022. The decline has been occasioned by interest rate hikes.

Durham Region is popular because of its lower real estate prices compared to Toronto, Vaughan, and Mississauga and its proximity to Toronto, the most populous city in Canada. The area has beautiful parks, cultural centres, and recreational spaces and is an art hub. The area has a mixture of residential, agricultural, commercial, and rural areas, meaning there is something for everyone. There are plenty of well-rated schools, the neighbourhoods are family-friendly, and the amenities are in plenty. The area is projected to experience 80% growth over the next 30 years.

Hamilton, ON

Hamilton is the 4th fastest growing tech city in Canada. It makes for an attractive real estate investment destination, given that renters occupy 35% of households in the city. The most popular real estate options in Hamilton are homes where one can add a secondary suite or have secondary suites already.

There has been an increase in such infill projects as garden suites and laneways in Hamilton, which further boosts the long-term value and monthly income from the area’s real estate. Are you wondering which city has the highest rental? Hamilton has massive rental income opportunities due to the nearby McMaster University and Mohawk College, which have a combined full-time and part-time student population of about 80,000. Other reasons to consider investing in Hamilton are the new 17-stop light rail line, the upcoming development of an entertainment hub, and redevelopment projects on the waterfront.

Sault Ste. Marie

Sault Ste. Marie, ON is the fastest-growing city in the province. The growth has been triggered by affordable housing, with home prices being in the $300,000 range. Multi-family apartments and single-family homes had the greatest demand in Sault Ste. Marie in 2022.

Sault Ste. Marie, located in the Great Lakes region, has many charming lakes, rivers, and outdoor spaces. The current population is 78,000. The area has a welcoming community who are looking to grow their city.

North Bay

North Bay, located in North-eastern Ontario on Lake Nipissing and 2 hours’ drive from Sudbury, is one of the most affordable places to buy real estate in Canada. In 2022, the composite benchmark price was $413,525, which is 47% lower than the national average. North Bay real-estate prices are on the rise and are projected to continue rising, which is great for current homeowners and potential investors. The often-overlooked North Bay saw a price increase of 21% in one year and 90% over 3 years.

Fredericton, ON

The MLS Home Price Index shows that the real estate prices in Fredericton have not been impacted by increasing interest rates. This, coupled with a decreasing overall real estate inventory, means the market balance is in favour of the seller.

Fredericton offers a mixture of residential and commercial real estate investment opportunities. Downtown Fredericton has great access to amenities, and the walkability is excellent. Fredericton is desirable to professionals because it is home to government buildings, several corporate offices, and cultural attractions like the Fredericton Playhouse and Beaverbrook Art Gallery.


Kitchener-Waterloo is a tech hub that has been growing at an unprecedented rate. In 2021, there were 88,000 new jobs in the Toronto-Waterloo Tech Corridor. The Kitchener–Waterloo area, which has the largest population in Ontario outside the GTA, is expected to continue growing faster than Silicon Valley, with a projected population increase of 56,000 between 2021 and 2026. Kitchener-Waterloo is an attractive real estate destination because it allows for tiny houses, backyard homes, and laneway suites in the province’s attempt to make the area denser.

Niagara Region

What makes the Niagara Peninsula such an attractive real estate investment destination is its 4 border crossings to the United States, proximity to Toronto, low prices, and the high rental demand. The area boasts of low vacancy rates at 1.8%, even during low tourist reasons. It is a booming agricultural and entertainment hub. The area, which consists of Niagara Falls, Lincoln, St. Catharines, Port Colborne, and Welland, has consistently succeeded over many decades and has even greater potential for growth.


There has been a 47.7% increase in households in Barrie between 2011 and 2021, which is a testament to the area’s charm. Barrie is popular with those looking for a less hectic home away from the Greater Toronto Area. The population is expected to increase by 20% by 2026 and by over 92% by 2051, which is more than double the national average. Barrie adopted Accessory Dwelling Units (ADUs), which allow homeowners to convert single-unit homes to up to 3 units (a detached ADU at the back and a secondary suite in the basement). This has seen an increase in renters.

Is it worth it to have a rental property in Canada? The Case for Quebec

Quebec’s GDP of C$504.5 billion (2021) makes it the 2nd largest economy in the country. Quebec is the largest province by land mass and the second largest by population, with an estimated population of 8.7 million (2022).

Montreal, QC

Montreal, with a population of about 2 million, is one of the most thriving metropolitan areas. There has been an influx into Montreal from more expensive cities like Vancouver and Toronto, which has helped drop the vacancy rate to 1.9%. The unemployment rate is also historically low at below 5%.

As a financial centre, Montreal ranks eighth in North America. It is a cultural and commercial hub. Montreal only comes second to Paris, France, as the largest French-speaking city. As a real estate investment destination, Montreal is popular because of its affordability (home prices are below the national average), its French culture and French food that attracts those who want a European feel, and the affordable universal childcare offered by Quebec.

Montreal has the largest underground city in the world, stretching 32 kilometres. The robust public transit system means manageable traffic and low air pollution, with a typical commute time of 30 minutes.

Best cities to invest in real estate 2023 Canada: British Columbia


reasons to invest:
the strong rental market;
the beautiful location with the mountains and the ocean;
the diversified economy
annual visitors
2 million
house value

Which province has the cheapest property tax in Canada? British Columbia may have some of the highest home prices in Canada, but the province has the lowest property taxes in the country. There are no land transfer taxes for 1st time home buyers in British Columbia, and there are attractive rental income tax benefits. British Columbia’s land mass is not as vast as in other provinces. The scarcity makes owning real estate in urban centres lucrative.

Nanaimo, BC

Vancouver Island is one of the most popular places on the Pacific Coast. Nanaimo has some of the most affordable home prices on Vancouver Island, with prices being lower than the provincial average. The lower prices attract those who want to enjoy the perks of British Columbia while still saving money, which makes this an attractive investment destination.

Nanaimo’s population currently stands at 100,000, but this is growing fast, leading to increased demand for housing. Other reasons Nanaimo is the best place to invest in real estate in B.C. 2023 are the strong rental market, the beautiful location with the city overlooking the mountains and the ocean, and the diversified economy.

Kelowna, BC

Kelowna, located along Okanagan Lake, is a beautiful gem. The popular tourist destination experiences warm weather, with the palm trees giving you a California vibe. With a population of just 143,000, the city attracts almost 2 million annual visitors.

Kelowna has a robust healthcare economy, a strong retail sector, and a booming construction and development industry. The typical assessed house value in Kelowna rose 34% in 2022 to sit at $869,000 from $650,000 1 year earlier. You should consider investing in Kelowna real estate to tap into tourism (you can consider an Airbnb). Kelowna is also a popular retirement destination.

Where is the best place to buy rental properties in Canada? Consider Alberta


the fourth largest city in the country with a population of
1.4 million
house value
less than $500,000
safe real estate investment destination:
low-income taxes;
high average incomes

Alberta’s property taxes are some of the lowest in the country. This means increased rental revenues and lower monthly mortgage payments. Alberta has a strong job market and a growing economy.

Calgary, AB

Calgary, the fourth largest city in the country with a population of 1.4 million, offers affordable urban living at a fraction of what other large cities like Vancouver and Toronto cost. So, is Calgary a good place to invest?

You can get a home in Calgary for less than $500,000, which is a great deal anywhere in Canada. Alberta is also known for its low-income taxes and high average incomes, making it a safe real estate investment destination.

Which is the best place to invest in real estate? The case for Nova Scotia


port on the Atlantic Ocean which makes it
a travel and fishing hub;
a popular destination for sailing, paddle boarding, and windsurfing
safe real estate investment destination
low-income taxes;
high average incomes

Halifax, NS

Halifax has a population of about 500,000. The mid-sized Nova Scotia capital is a port on the Atlantic Ocean. This makes it a travel and fishing hub. The city is also a popular destination for sailing, paddle boarding, and windsurfing.

There is great potential for price growth for those looking to invest in Halifax real estate. Property prices are affordable, and all the amenities available in larger provincial capital cities are also present here.

Where to buy real estate in Canada: The Case for New Brunswick


mixture of
residential and commercial real estate investment opportunities
the area has
government buildings, corporate offices, and cultural attractions (the Fredericton Playhouse and Beaverbrook Art Gallery)
Greater Moncton
the prices are
60% below the national average
over the past 5 years, home prices have gone up by

Greater Moncton, NB

If you are wondering where to invest in real estate, Greater Moncton has a declining property inventory, which is tilting the real estate market in favour of the seller. Greater Moncton is the most populous area in New Brunswick. Although home prices are on the rise, the prices are still 60% below the national average. The area consists of Riverview, Moncton, and Dieppe, all with affordable prices ideal for first-time home buyers. Despite interest rate hikes, property prices in Greater Moncton have not cooled off.

The steady price growth makes this an attractive real estate investment opportunity for those looking to invest for the long term. Greater Moncton has a lower unemployment rate compared to the surrounding comparable cities. Its stable economy revolves around transport, distribution, and retail. Over the past 5 years, home prices have gone up by a staggering 102%.

Is Canada a good place for foreigners to invest?

As a foreigner looking to invest in Canada, note that the Prohibition on the Purchase of Residential Property by Non-Canadians Act commenced on January 1st, 2023. This ban was implemented to address the housing crisis in the country and is expected to be in place for 2 years. Note that the ban does not impact non-Canadians who end up with property due to divorce, separation, or death, nor non-residents married to Canadians, diplomats, and refugees. Also exempted are international students who have been in Canada for over 5 years (with a cap of 0.5 million) and workers who work and file returns in Canada (and who have been in the country for 4 years).

Emerging Markets in Canada

2023 is a good year for the Canadian economy. Inflation is declining, GDP is growing, and unemployment rates are low. However, the inflation rate is still above the central bank target of 2%.

Regarding real estate, Canada, and other developed markets, cannot compete with emerging markets (EMs). EM economies are not plagued by the problems of sluggish economic growth, low inflation, flat yield curves, and low long-term bond yields. EM economies are usually characterized by rising incomes and increasing working populations.

You can invest in EMs through Emerging Markets ETF Canada. ETFs (exchange-traded funds) work like traditional mutual funds in that they allow you to invest in bonds, stocks, and similar securities. ETFs offer efficiency and flexibility in that they can be traded during the day, using an indexing approach, on an exchange at market-determined prices. The indexing approach means a rise of 2% in an index leads to approximately a 2% rise in the ETF.

Even when investing in Canada’s traditionally good dividend-paying stocks, ETFs are a way of diversifying. Although most retail investors do not have a full grasp of what is happening in Emerging Markets, there are ETFs in Canada that provide broad exposure. So, what are some examples of emerging markets?


China’s marketplace is still shrouded in complexity and is very dynamic. Novice investors have to contend with subsidies for local companies, industry fragmentation, and an opaque regulatory environment. However, there is no denying that China is the most attractive EM today, thanks to its large population, heavy industrialization, and relative political stability.


Brazil recently surpassed the UK as the 6th largest economy in the world. Trade between Brazil and Canada has strengthened over the years, and Brazil is now Canada’s 9th largest export market, importing paper products, machinery, electronic equipment, oil, and mineral fuels. Brazil’s exports to Canada include soy and iron.


Canada and Russia have common interests and experiences in natural gas, oil, forests, and metals due to their location near the Arctic. However, there are several barriers to Russia-Canada trade, mostly due to rampant corruption in both private-sector and government-run companies in Russia, unfriendly investment laws, government interference, and high taxes. India is another important emerging market.

Best Emerging Markets ETF

  1. BMO’s EMs ETF has exposure in 26 EM countries. With net assets of over $1.5 billion, BMO emerging markets ETF holdings are spread across Alibaba Group Holdings, Taiwan Semiconductors, Samsung Electronics, and Tencent Holdings, among others.
  2. iShares Core MSCI EMs ETF also allows you to invest in China, although exposure in China is only 29%, the rest being Taiwan, South Korea, and India.
  3. FTSE EMs All Cap Index ETF is one of the top emerging markets ETF Canada, with assets worth over $1.6 billion. The ETF has very high exposure in China, India, and Taiwan, which make up 66% of the total exposure, with China having over 30% exposure.
  4. Vanguard Emerging Markets ETF Canada invests indirectly and directly in small-, large-, and mid-small-capitalization stocks of companies in Emerging Markets. Vanguard FTSE Emerging Markets All Cap Index ETF’s greatest exposure is in China.

Investment Takeaways

The real estate sector in Canada has done well over the past few years. RBC predictions are that although the market will cool down a bit, it will still be strong due to demographic shifts, lack of supply, and growing immigration. Real estate investment in Canada is also a way to diversify your portfolio if you are in other investments.

So, where is the best place to buy rental properties in Canada? Some areas will give you better returns than others. Top real estate investment destinations in Canada include Durham Region, Hamilton, Sault Ste. Marie, North Bay, Kitchener–Waterloo, Barrie, Niagara Region, and Fredericton in Ontario. Montreal in Quebec, Nanaimo and Kelowna in British Columbia, Calgary in Alberta, Halifax in Nova Scotia, and Moncton in New Brunswick are also worth considering.

An important tip on how to make money in real estate in Canada is to go long-term as opposed to short-term. If you want other such tips and ideas on where to invest, come to Certified Mortgage Brokers. We serve clients across Ontario, partnering with the best mortgage brokers in Toronto. We offer very competitive rates. Call us at +1 866 921 8890 for all your mortgage needs, as well as other financial services.