Investing in Toronto
Investing in Toronto real estate — 2026 playbook
Toronto remains North America's fastest-growing major city by population. Long-term thesis is land scarcity in the 416 plus continued immigration. Condos near new transit (Ontario Line, Eglinton Crosstown, Yonge North subway extension) are the most actionable entry-level investment.
Cap rate range
3.0%–4.0% gross on well-bought 416 condos; 2.5%–3.2% on detached rentals.
Condo avg price
$705,000
Detached avg
$1.65M (city-wide) · $2.0M+ (416 core)
1-bed rent
$2,400–$2,950
Rent demand
Highest in Canada — driven by U of T, TMU, OCAD, George Brown, Centennial, hospital networks, and corporate HQs.
Where investors are buying right now
- Yonge corridor condos near future Yonge North subway stops
- Scarborough single-family near GO and the Scarborough Subway Extension
- Etobicoke purpose-built rentals along the Bloor line
- East-end semi-detached with legal basement potential
Risks to underwrite
- Toronto's Municipal Land Transfer Tax meaningfully reduces flip margins.
- Vacancy in the 416 spiked briefly in 2024–25 — newer condo investors must underwrite to $2,200 rents, not $2,800.
- City of Toronto's MURB and short-term rental rules are stricter than the 905.
How Mohammed works with investors
- Written underwriting on every shortlisted property — purchase price, financing, all-in monthly carry, conservative rent, and 5-year IRR.
- Connections to mortgage brokers, insurance, paralegals, contractors, and property managers who actually return calls.
- No pressure on pre-construction unless the deal pencils — most don't.
Thinking about Toronto?
Mohammed lives and works across the GTA full-time. Quiet, no-pressure conversation.
Call or text 647.673.0810