Mark Giavedoni says the focus is moving back to residential real estate
As the geopolitical landscape in North America shifts and a new federal government settles in, Canadian real estate investors may begin rethinking their strategies, potentially redirecting focus from south of the border to opportunities within Canada.
Mark Giavedoni, a partner at Gowling WLG, says these changes and expected regulatory reforms could lead to a significant uptick in legal work for real estate lawyers.
New legislation, he says, could be just around the corner.
“I expect that this time next month, we will probably be inundated with another round of pieces of legislation that are going to start impacting different sectors quite aggressively.”
Giavedoni points to the recent crackdown on Notices of Security Interest (NOSIs) as an example of politically motivated legislation, at least in part, and suggests more similar moves may follow in response to other housing or consumer concerns.
He says interprovincial trade, land transfer taxes, and vacancy unit levies are all potential areas of reform, especially as municipalities begin to shape their post-election agendas.
Canadian Lawyer recently wrote how the once-booming industrial real estate sector is seeing a slowdown.
Giavedoni agrees that the industrial sector, once seen as a buffer during housing, office, and retail downturns, is now showing signs of cooling. The focus is moving to residential real estate, and affordable housing is again in the spotlight. He says the condo development sector is stalled despite the need for housing.
Condos, long considered a reliable solution for urban housing density, face a harsh reality. Financing is drying up, buyers are hesitant, and appraisals no longer match the price tags. “That’s causing a bit of a tailspin,” Giavedoni says.
This shift, he says, is driving changes in land use planning, municipal law, and expropriation as governments attempt to respond to the housing crisis. Developers now must rethink how they approach, appeal, and budget for large-scale residential projects.
On the commercial side, Giavedoni says that data centres have emerged as a hot topic, but Canada is lagging behind the US. He says Alberta holds promise, but infrastructure gaps remain a significant hurdle.
“You can find a giant field and decide to put up a data centre there – but you also have to connect the dots,” he says.
As Canadian investors look beyond the US and international investors look more closely at Canada, Giavedoni says the country must focus on making itself an attractive destination for investment.
“As long as we put out the opportunity, people will take it – but you’ve got to package it a bit, Canada,” he adds.
Giavedoni also highlights the growing interest in agricultural real estate for raw production and food manufacturing, though it remains a more regionalized trend.
While the election may have provided some clarity, Giavedoni says real answers are still on the horizon.
“The markets are not looking for a definitive answer, but they are looking for a trajectory,” he says.
With new leadership in place, governments can begin to chart a course – particularly on matters like affordability and housing supply.
The fact that the elections are over means that there will be a person who can provide insight and guidance on international matters or, in the case of real estate, on legislative changes.
“We’ll still have to wait a bit. But making that decision helps.”
