2024 was marked by significant economic and social changes in Quebec’s real estate sector. As the market stabilizes following a period of fluctuations, new trends are redefining priorities for real estate developers, investors, and buyers. Here’s an overview of the year’s key highlights and a look at predictions for 2025.
One of the major trends of the year was the drop in the Bank of Canada’s policy rate, which led to a decrease in mortgage rates. After remaining steady at 5% for several months, the policy rate began a gradual decline in June 2024, reaching 3.25% in December after five successive cuts.
With the rising cost of living, demand for affordable housing skyrocketed. Several initiatives were launched to improve accessibility, including partnerships between governments and non-profit organizations (NPOs). This market segment also gained increasing interest from private developers.
Environmental and social concerns are increasingly influencing decisions made by developers and investors. Real estate projects now incorporate more sustainable practices, focusing on reducing carbon footprints and enhancing infrastructure resilience to climate change.
Due to high prices in Montreal, many buyers are looking to regional areas where options are more affordable. Remote work continues to drive this trend, while young professionals remain drawn to major cities for their proximity to services and public transportation.
Technological innovation is transforming the expectations of real estate buyers and tenants. Smart home technology, renewable energy, and advanced security solutions are becoming essential. These innovations improve energy efficiency while enhancing user experiences.
Simultaneously, digital tools such as 3D floor plan applications and immersive videos are revolutionizing how real estate projects are designed and marketed. Social media is becoming a dynamic showcase for captivating and engaging property presentations.
These developments integrate green spaces, community services, and nearby businesses to meet the needs of families and young professionals. Laval and Quebec City are leading the way with significant investments in neighborhoods focused on sustainable mobility and social diversity.
Supported by government incentives, affordable housing projects are attracting both private and public developers. Partnerships with NPOs are increasing to meet growing demand.
Although housing starts saw a slight increase in 2024, constraints such as zoning moratoriums in Sherbrooke and Lévis are slowing growth. Governments will need to intensify efforts to address demand and the shortage of available properties.
Older buildings present significant potential, especially with subsidies available for energy transition initiatives. Modernizing these structures to meet current standards can offer attractive returns on investment.
The growth of infrastructure and the popularity of remote work are opening opportunities in previously underestimated areas.
Projects that combine residential, commercial, and community spaces allow for revenue diversification while addressing the varied needs of the population.
As 2025 begins, Quebec’s real estate market promises to be a strategic period. Those who can innovate and adapt to consumer expectations will benefit from emerging trends. Whether you’re an real estate investor, developer, or buyer, staying informed is crucial to seizing opportunities in this ever-evolving market.
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