Edmonton’s commercial, industrial and residential real estate market ended last year with changes, surprises and optimism. Headed for the seasonally busy spring, the 2026 market is already showing momentum.
“We started to see tangible changes, particularly in the second half of 2025,” says Cory Wosnack, principal and managing director of Avison Young. “All sectors came through the year with promising results, overall. One outstanding asset class was office, which has seen challenging times and is ordinarily not the sector highlighted in good-news stories. Edmonton recorded the strongest year of absorption since 2018, with downtown driving the Q4 activity. It was the first time in six quarters that downtown leasing exceeded suburban activity.”
He notes that the stats and numbers demonstrate the perseverance and positive turnaround of Edmonton’s commercial market.
There is also optimism and momentum in Edmonton’s residential market.
Darlene Reid is chair of the REALTORS® Associations of Edmonton (RAE) and an associate broker with More Real Estate.
“Last year played out differently than we initially anticipated,” she says. “Several key factors shaped the market. Interest rates shifted from shock to stability. Borrowing costs remained higher than pre-pandemic levels and the reduction in uncertainty led to fewer panic driven decisions and a greater prevalence of conditional offers.
“Inventory levels increased, not because demand weakened, but because supply finally began responding to the shortages experienced over the previous few years. In the rental market, vacancy rates rose as a significant number of purpose-built rental units were completed and came online.”
Very early into 2026, she adds that most real estate indicators are pointing to a balanced Edmonton market.
“Buyers have more choice, and the market will no longer be driven by urgency or panic. It all combines to create an environment where REALTORS® can act as trusted advisors rather than firefighters responding to pricing pressure. Price growth is expected to be modest across most housing types, with the exception of apartment condominiums, where higher inventory levels are expected to put downward pressure on prices.”
Of course, the economy is the linchpin of the real estate market, but Edmonton’s commercial and industrial real estate is primarily driven by vacancy and absorption. Trends show that generous office incentives are boosting the leasing market, creating favourable terms for occupiers.
“We anticipate vacancy will tick downward, while positive absorption ticks up, supported by leasing momentum, increased downtown office utilization and well-positioned investment activity,” Wosnak explains.
Similarly, the industrial sector is experiencing positive absorption and strong demand, with vacancy trending lower due to limited new supply.
“Speculative builds are favoured for this year, with small/mid-bay development paused unless rents rise significantly. Despite some concern around rising construction costs, we expect higher activity and have cautious optimism for Edmonton industrial.”
For residential real estate, it is already a more balanced, stabilizing market, moving away from recent intense fluctuations, with modest price growth and a rebound in sales volumes. Driven by affordability and stable economic factors, 2026 seems to be an attractive entry point for buyers.
Edmonton Realtors mention that the return to a balanced market was gradual, but a bit of a 2025 surprise. There were more new listings than forecasted, fewer sales than expected and average prices increased beyond RAE projections, ending the year at $458,242. By the end of last year, the average price of an Edmonton detached home reached $570,045, a 6.4 per cent increase from the year before.
Semi detached homes rose and were $429,848. Row and townhouse properties increased, ending the year at $304,553. Condominium and apartment prices were also a surprise, with an average benchmark price of $211,388.
“From a residential perspective, last year was an adjustment for Edmonton’s real estate market,” says Tom Shearer, broker/owner of Royal LePage Noralta Real Estate. “While overall sales activity remained historically strong, the tone of the market shifted. We moved away from the intense seller-driven conditions that defined the early part of the year and settled into a more balanced environment as inventory gradually increased.
“Prices continued to trend upward across most housing types, but the pace of growth moderated as selection improved and buyers became more deliberate. Average days on market lengthened modestly, signaling a market that was no longer driven purely by urgency, but by choice.”
Prices are always a factor, but for Edmonton’s residential, commercial and industrial real estate markets, affordability and migration are also important.
“Migration was arguably the single largest demand driver of the year, with Alberta continuing to attract households from Ontario and British Columbia,” Reid explains. “Looking ahead for the balance of this year, migration into the Edmonton region is expected to slow to approximately 18,000 newcomers.”
She adds that, while Edmonton migration is lower than the peak levels of recent years, it still remains well above long-term averages, supported by Edmonton’s position as one of the most affordable major cities in Canada.
Wosnack underscores that, also in Edmonton’s commercial market, “A key driver for success is the record level of interprovincial migration as we continue to welcome more new residents to cities across the province.”
Major developments and city capital projects are consistently relevant barometers of Edmonton construction and real estate.
“The most underappreciated new project that was recently completed is Warehouse Park downtown,” he points out. “Three residential projects are in the works surrounding the Park with two more on the way, in addition to The Parks luxurious development. Also, we are excited to see the plans unfold for a new high rise residential tower at ICE District.”
For the residential market, affordability continues to be one of Edmonton’s strongest advantages. While prices have risen, they remain accessible relative to many major Canadian markets, supporting first-time buyers, move-up buyers and investors alike.
“By all indications, 2026 is shaping up to be a year defined less by market extremes and more by strategy,” Shearer adds. “A balanced market doesn’t mean a slow market, it means a more rational one. Homes that are priced well and marketed properly will continue to sell, while those that miss the mark may take longer to find their buyer. Buyers can expect fewer bidding wars and sellers will need to focus on pricing accuracy, presentation and preparation to stand out.”
According to City of Edmonton spokesperson Karen Burgess, some key infrastructure and capital projects also reflect construction momentum.
“Major LRT construction is continuing this year for Valley Line West, particularly in downtown on 102 Avenue, and along 87 Avenue near the West Edmonton Mall. Construction will also continue on the Capital Line South Extension along 111 Street south of Century Park station,” she says.
“Construction will continue on the Yellowhead Trail Freeway Conversion, with the largest project (St. Albert Trail to 97 Street) nearly halfway complete, and stage two of the Terwillegar Drive Expansion project scope includes the area along Whitemud Drive between 53 Avenue and 119 Street. The 50 Street Widening and Railway Grade Separation will both be completed by the end of the year.”
City schedules also show the demolition of the Coliseum is starting this year. Construction for the Lewis Farms Facility and Park Project continues, with completion by the end of next year and opening in summer 2028.