Investor confidence in the Greater Toronto Area’s commercial real estate market strengthened in the first half of 2026, according to new data from Altus Group. Total investment volume rose nearly 35 per cent year-over-year to $10.2 billion, driven largely by renewed activity in the office and multifamily sectors. This upswing unfolded despite persistent headwinds, from global geopolitical instability to shifting regional demographics, and the slow recovery from a technical recession earlier in the cycle.

Of the sectors, multifamily was the clear standout, recording nearly $2.4 billion in transaction volume—a 244 per cent year-over-year increase. This surge wasn’t the result of isolated portfolio trades; it reflected broad-based momentum across the region. Altus Q2 data shows that York, Durham, and the City of Toronto all posted year-over-year increases of 5,128 per cent, 807 per cent, and 300 per cent, respectively—evidence of deep institutional demand for residential density and a strategic shift toward both the GTA’s established urban core and its rapidly intensifying suburban hubs.

Apartments continued to serve as a strategic hedge against inflation, supported by persistent supply imbalances and mounting affordability pressures in homeownership. At the same time, capital allocation became more disciplined as investors adjusted to the Bank of Canada’s tightening bias. Rather than underwriting near-term relief, institutional buyers modeled deals around elevated debt costs and stricter lending parameters. This recalibration reduced refinancing volumes and prompted developers to defer uncommitted pipeline projects.

Market participants also shared a measured outlook on rental performance. Stronger tenant absorption and a return to historical rental growth premiums were expected to remain muted over the medium term. The region is working through a substantial dual-supply overhang: a wave of purpose-built rental completions alongside a heavily supplied secondary condominium rental market. As a result, full stabilization of rental fundamentals is projected to unfold over several years, rather than correcting within a single annual cycle.

For the full GTA investment report, click here: Toronto Commercial Real Estate Market Update – Q2 2026