Why Invest in Canada?

When people talk about investing in Canada, the conversation often starts with frustration. Housing is expensive. Development is slow. Approvals take too long. Construction costs are high. From a policy and affordability perspective, those criticisms are fair. But from an investment standpoint, they miss the point. Many of the factors that make Canada difficult are the same factors that make it attractive for long-term real estate capital. We view Canada as a market defined by structural constraints rather than cyclical excess.

It is hard to add new supply here, and that reality shapes almost every outcome in real estate. Zoning restrictions, lengthy municipal approval processes, community opposition, environmental regulation, and rising construction costs all work together to limit how quickly new buildings can come online. Financing for new development has also become more selective since interest rates rose. Even when demand is obvious, supply responds slowly. That dynamic creates scarcity value. In markets where supply can be added easily, rising rents invite a wave of development that eventually caps returns. Canada behaves differently. Existing assets face far less competition from new construction, which makes cash flow more defensible over time. When we underwrite Canadian properties, we spend less time worrying about a flood of new supply eroding rents three or four years out. That alone materially changes the risk profile.

Population growth reinforces this imbalance. Canada continues to grow faster than most developed countries, even after immigration policy tightened. More people need housing, services, and infrastructure, yet the pace of new construction remains well below what would be required to fully absorb that demand. This isn’t a temporary mismatch. It’s structural, and it shows up most clearly in major metropolitan areas where jobs, education, and amenities concentrate. That population growth supports demand across multiple property types. Rental housing remains the most obvious beneficiary, but the effects extend further. Grocery-anchored retail, medical and service-oriented commercial space, and urban industrial assets all benefit from steady population inflows. What matters is not just growth in absolute terms, but growth coupled with limited land availability and restrictive planning frameworks. The result is persistent pressure on occupancy and rents, even during periods of economic softness.

Supply constraints also play an important role during downturns. Every market experiences cycles, and Canada is not immune to slower growth, trade uncertainty, or external shocks. But constrained markets tend to adjust differently. Instead of sharp drops in rents and values caused by oversupply, the adjustment often comes through slower rent growth and longer leasing timelines. Tenants still need space, and alternatives remain limited. That scarcity cushions downside risk in a way that more permissive markets cannot replicate. This is one reason institutional capital continues to view Canada favourably despite macro uncertainty. Long-term investors are less concerned with year-to-year GDP volatility and more focused on durability. They look for markets where demand is reliable, supply is disciplined by regulation and cost, and the legal and political environment is stable. Canada fits that profile. The rule of law is strong, property rights are clear, and capital can be deployed at scale without the political risk present in many emerging markets.

It’s also why capital is increasingly flowing through direct investments. Investors want long-duration exposure to markets where operational execution matters more than financial engineering. In a constrained environment, returns are driven by asset quality, management discipline, and time. That aligns well with patient capital. Regulation is often treated as a one-sided negative, but in real estate it cuts both ways. For new entrants, it raises barriers. For existing owners, it creates a moat. Once an asset is entitled, built, and stabilized, its competitive position strengthens as replacement costs rise and new supply remains limited. Inflation only amplifies this effect. When it becomes materially more expensive to build than to buy, existing properties gain intrinsic value regardless of short-term cap rate movement.

Canada is not a market designed for rapid speculation or aggressive growth assumptions. It rewards investors who focus on durability rather than speed. Growth still exists, but it tends to be incremental and supported by fundamentals rather than optimism. Rents grow because demand persists, not because supply suddenly disappears. Values hold because alternatives are scarce, not because buyers are exuberant. That is ultimately what makes Canada compelling. Above-average population growth collides with below-average supply growth in a stable, rules-based environment. Those conditions don’t produce dramatic booms, but they do produce resilient outcomes over time. For investors willing to think structurally rather than cyclically, Canada remains a market where capital can compound quietly and defensibly, even in the face of economic uncertainty.