Q1 2025 Land Market Report

Key Trends & Takeaways

In the face of ongoing economic headwinds, election-year uncertainty, and shifting market sentiment, reliable data has never been more important. While overall transaction volumes are down, select land deals continue to proceed, albeit with caution.

Q1 2025 Total land sales across the GTA & GGH in both ICI & Residential sector have dropped to the lowest dollar volume level in the last 13 quarters. Industrial leasing rates are softening from their peak and the trend continues, though still higher than pre-2022 levels. User-driven land purchases now dominate, suggesting a more cautious and strategic market posture for investors. Industrial construction starts have declined significantly—from 18.7M sq. ft. in Q3 2022 to 10.5M sq. ft. in Q1 2025 across the GTA market—yet net absorption turned positive this quarter for the first time in over two years.

On the residential side, land sales reflect a more balanced, post-boom environment. Pre-construction activity hit a historic low in Q1, while developers are increasingly shifting toward more family-oriented (larger unit) and rental-focused design. Affordability is driving a renewed focus on incentives and pricing flexibility.

Our full Q1 2025 Land Market Report is now available. Whether you're an investor, developer, or advisor, this is essential reading for navigating the current landscape.