British Columbia’s multi-family real estate market saw a major surge in 2024, with investment volume reaching about $2.2 billion—the second-highest total in more than a decade, according to a new report from Avison Young.

Multi-family and residential land transactions accounted for 44% of the province’s overall $10.1 billion in commercial real estate transactions in 2024, reflecting ongoing housing challenges in Metro Vancouver. The total volume of deals worth more than $5 million jumped 56% from 2023, when it stood at nearly $6.5 billion.

Most asset classes saw year-over-year gains in transaction volume, with the office sector leading the way. Office sales skyrocketed to nearly $1.5 billion in 2024, up from just over $220 million the year prior. The only exception was industrial real estate, where sales declined 26%, marking the lowest transaction volume in that sector since 2019.

The surge in sales activity was partly driven by a series of Bank of Canada interest-rate cuts, which reduced the key lending rate to 2.75% as of March 12, 2025. The reductions have provided relief to buyers, though lenders remain cautious to prevent excessive borrowing, according to Avison Young.

Political and economic uncertainty also influenced investment decisions. Anticipation of a paused federal capital-gains tax increase led to a flurry of sales in mid-2024.

Prime Minister Mark Carney has pledged to scrap the increase, pending the outcome of the federal election. To scrap the increase, the government would need parliamentary approval.

Additionally, ongoing trade tensions with U.S. President Donald Trump have created some economic unpredictability. However, B.C. is expected to see only modest effects, given that just 51% of its exports go to the U.S., said Avison Young.

With the federal election set for April 28, investors are keeping a close eye on economic policy shifts that could further impact the commercial real estate market.

Pictured: Vancouver, viewed from the city’s west side.

Photo: Courtesy of Avison Young

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