Buyers, sellers and investors alike are all wondering what the future has in store for Ottawa. The last few years have left us all feeling uncertain about the near future of real estate, not just in Ottawa but Canada-wide.
However, is hope on the horizon! Here is your ultimate guide to Ottawa real estate in 2025 & beyond!
Here’s a recap of what 2024 brought us:
- interest rates remained high through 2024 and the Bank of Canada tried to keep inflation under control
- in March 2024, the BoC put a hold on rate hikes for the first time since 2022
- we saw the first rate cute in June of 2024, giving a very small amount of relief for buyers but overall giving some hope for a rebound
- overall prices remained somewhat stable in most markets with a few seeing slight dips
- suburban and rural areas remaind strong as demand for these ares held steady
- condo & new-build development slowed as mortgage rates remained high and developers found greater profitability in purpose-built rental buildings
- overall rental demand remained very high with prices increases across most major cities
- By Q4 2024, buyers and sellers slowly starting coming back to the market as confidence grew
Here are just some of the predictions for the 2025 Real Estate Market in Ottawa:
Home Prices Will Climb Again by the End of 2025 & into Early 2026.
In the CMHC’s 2025 Housing Market Outlook report it’s expected that home prices will start climbing again in 2025, with lower mortgage rates and changes to mortgage rules unlocking pent up demand. We expect an uneven rebound with some markets rebounding faster than others. The condominium market being one of the slower markets to rebound.
So far, in Q1 2025 the aggregate home price in Ottawa saw a 2.9% increase year over year reaching $779,400, according the the Royal LePage Home Price Survey released in April 2025. On a quarterly basis Ottawa saw an increase of 1.2%.
Right now, Ottawa is seeing increased inventory which is giving buyers more freedom and choice when it comes to the home buying process. Lower borrowing costs have also opened doors for first-time homebuyers in Ottawa, creating an influx in buyers.
Royal LePage is predicting the aggregate home price in Ottawa will increase 4.0% year over year by Q4 2025.
With every prediction, we need to take it with a grain of salt. Price gains are dependent on many economic factors, including the prime lending rate and the overall stability of the economy. For Ottawa in particular, we can expect greater market stability based on historical data, however we are not immune to the impact of a recession and our market typically slows during a Federal Election.
Suburban Sprawl Will Continue in Ottawa in 2025.
We’re seeing it now already, there is a lot of development happening across our city. We’re seeing more and more infill properties popping up in neighbourhoods across the region as developers and investors look to squeeze in more housing and take advantage of lower-density rental opportunities.
Emerging neighbourhoods like Barrhaven and Riverside South will take the lead in home sales as buyers explore a variety of housing options to cater to their various budgets. These neighbourhoods have already grown in popularity due to their variety of housing options, pricing and access to ammenities.
First-time & Residential Real Estate Investors Will Look To Ottawa For Opportunities
As the real Canadian real estate market stabilizes we will see more people turning to residential real estate investing to secure their financial future. As we’ve watched the stock market shift drastically along with President Trump’s tariff threats, Canadians are losing trust in the stock market and are looking for other investment opportunities.
Long-hold residential real estate investment is always going to be a relatively safe bet as long as you’re investing strategically and Ottawa is becoming a prime spot for all types of investors. The relative market stability of Ottawa, compared to other major investment markets like Toronto, is making our city a prime spot for all levels of investors.
If you’re thinking of investing in Ottawa real estate, join our exclusive email newsletter! We share properties we have our eyes on and their investment breakdowns, so you know exactly what you’re getting into. When you sign up you’ll also gain access to our e-book Unlocking Profitable Properties: A Guide To Ottawa Real Estate Investing.
Here’s What You Really Need To Know About Ottawa Real Estate in 2025
This year is shaping up to be filled with opportunity for buyers, sellers and investors in Ottawa! We’re seeing short-term increases in inventory which is opening doors for buyers and are expecting to see a strong rebound throughout the year for sellers looking to get top dollar for their property.
If you’re looking for personalized real estate advice from an experienced Ottawa Realtor, look no further than our team. We are happy to help you on your real estate journey, whatever that may look like.
