Greater Toronto Area (GTA) multifamily sales got off to a rousing start this year, as transaction volume rose to $569 million across 20 trades in the first quarter, a 228.7 per cent year-over-year increase. The number of units sold increased to 1,934, up 248.5 per cent.

Those figures jumped out from Colliers’ GTA Multifamily Q1 26 report and senior vice-president Dayma Itamunoala wrote in an email interview with RENX that three factors converged to produce the results.

“First, private buyers who had been patient through 2023 and 2024 stepped up with real conviction. Second, institutional players became materially more active after 18 months of highly selective deployment. And third, the bid-ask spread that had stalled the market finally normalized. 

“This is a trend, not an anomaly. The conditions that drove the surge in Q1 haven't changed. If anything, they're strengthening.”

Among the notable GTA deals during the quarter included in the report were:

• Starlight Investments’ $126.41 million acquisition of Hansard Investments’ three-building, 408-unit portfolio in East York and Scarborough;
• Homestead’s $87.84 million acquisition of a 234-unit apartment at 15 Canyon Ave. in North York;
• and Upperside Apartments’ $80 million acquisition of a 309-unit apartment at 3950 Lawrence Ave. in Scarborough.

Pricing has stabilized

Despite the sharp rise in volume, average pricing per unit remained stable at $289,047, up just 0.4 per cent from a year earlier, suggesting that values have largely stabilized following the repricing cycle experienced over the past 12 to 18 months.

Capitalization rates rose to an average of 4.95 per cent, up 50 basis points year-over-year and 32 basis points from Q4 2025.

“Volume recovered because pricing corrected to a level where the math works,” Itamunoala wrote. “Cap rates moved higher, and that's what brought buyers back. If pricing had spiked alongside volume, that would actually concern me because it would mean we're back to the same overheated dynamics that created the problem in the first place.

“The stability at $289,000 per suite tells me the market is in a healthy place. Sellers are realistic, buyers are disciplined and deals are getting done at prices that make sense on a levered basis. 

“I'd expect modest upward pressure on pricing through the rest of the year as competition increases, but this won't be a sharp move. It'll be gradual.”

What apartment properties are selling?

Itamunoala said competition for assets is strongest for buildings in the 30- to 150-unit range in established urban and suburban locations. He’s routinely seeing six to 12 qualified offers in marketed processes for well-positioned assets in that size range.

“Value-add assets are centre stage,” Itamunoala wrote. “Buyers are getting back to the tried-and-true model: acquire at a basis that works, execute a renovation program and grow rents organically. 

“Purpose-built rental with in-place income stability is what's clearing. Buyers are underwriting to achievable rents, not speculative upside.

“At the larger end, portfolio trades are back in a meaningful way. We're working with multiple purchasers who are actively targeting acquisitions in the $500 million to $1 billion range. Large buckets of capital are looking for scale, and they're finding it.”

Who’s buying?

Family offices, private real estate investment trusts and high-net-worth individuals with existing portfolios have been driving sales for the past two years, but pension funds and large-scale operators re-entered the conversation in a serious way.

Operators who built portfolios in other markets or other asset classes are now looking at multifamily acquisition opportunities in the GTA and other parts of Ontario, including Hamilton, Niagara Region, Kitchener-Waterloo and Ottawa.

“In some cases, secondary markets are even more competitive on a per-door basis because the absolute entry point is lower and the yield is higher,” Itamunoala wrote.

Transactions are also closing faster, as due diligence periods have generally come down from 60 days to between 15 and 45 days. Six of the deals Itamunoala’s team has completed in the past four months had 10-day due diligence conditions – or less.

What’s available?

That Colliers team has over $450 million in deals under contract or moving towards closing, and another eight active listings across Ontario.

Toronto listings include a 52-unit property at 231 Vaughan Rd., a 29-unit property with an office space at 149 Cosburn Ave. and a 35-unit property at 116 Spencer Ave. They’re available to purchase individually or as a portfolio.

A 12-storey, 122-unit apartment building at 30 Springhurst Ave. has just come on the market for an asking price of $37.25 million.

“Across the broader GTA market, there's a healthy but not oversaturated level of supply,” Itamunoala wrote. “We're seeing a good balance between quality offerings and active demand, which is supporting clean processes and competitive pricing.”

Continued heavy activity anticipated

Itamunoala expects the coming quarters to be the most active trading periods in three years due to stable financing, pent-up capital and improving sentiment. He anticipates full-year volume to meaningfully exceed 2025.

“Looking further out, the supply story is what really matters,” Itamunoala wrote. “Construction starts for purpose-built rental are declining. Project pipelines are thinning as developers face elevated construction costs and longer approval timelines. 

“In two to three years, the new supply hitting the market is going to fall off materially, and that's going to put upward pressure on rents. There are compelling opportunities for both buyers and sellers today, but the long-term outlook for Ontario multifamily is extremely positive.”