Cost Clarity: An Overview of Altus' Canadian Construction Guide
Altus Group has published its highly anticipated 2025 Canadian Cost Guide, providing critical insights into construction costs across the Greater Toronto Area (GTA).
Quick Highlights (GTA/Toronto):
Residential (Condo/Apartments):
Up to 12 Storeys: $290–$390/sq.ft.
13–39 Storeys: $295–$385/sq.ft.
40–60 Storeys: $330–$410/sq.ft.
60+ Storeys: $365–$480/sq.ft.
Office Buildings:
Class A (31–60 Storeys): $355–$510/sq.ft.
Interior Fitout $160–$265/sq.ft
Retail:
Strip plaza: $235–$295/sq.ft
Enclosed Mall: $275–$480/sq.ft.
Hotels:
4-Star Full Service: $390–$565/sq.ft.
Industrial
Warehouse: $80–$180/ sq.ft
Distribution Facility: $180–$480/sq.ft.
Storage Facility: $95–$195/sq.ft
Overall, the guide indicates a stabilization of construction costs following recent years of sharp inflation, though ongoing factors such as core inflation, wage pressures, and potential tariff changes still pose risks. GTA developers must navigate these uncertainties carefully, using this latest cost data as an essential tool for budgeting and strategic planning. Staying informed and agile will be crucial for successful project outcomes in 2025 and beyond.
My Take: Although construction costs are showing signs of easing, overall development activity in the GTA is likely to slow down in the coming months and possibly years. High municipal and provincial development charges along with significant wait times for permitting from select municipalities appear to be significant obstacles.
Developers I've spoken with have existing projects in their pipeline and are not rushing to initiate new ones, with some even considering selling their land holdings. This market environment could present unique opportunities for patient, well-capitalized investors looking to acquire deals both on and off-market.
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Disclaimer: All data is sourced from Altus Data Studio. This information is provided for informational purposes only and is intended as a general overview. Readers should consult the original publication by Altus Group for comprehensive details and are advised to seek professional advice for precise construction cost estimations tailored to their specific projects. All rights and credit for the original content belong to Altus Group Limited.
