If you’re looking for an investment opportunity in 2025, Best Canadian REITs 2025 might be just what you need.
Real Estate Investment Trusts (REITs) let investors earn income generated by commercial and residential properties. This allows them to benefit from tax-efficient real estate investments without owning the properties.
They offer an excellent option for beginners and experienced investors, especially if you want to avoid some of the challenges of direct property ownership.
In this guide, we’ll show you the best Canadian REITs of 2025 and explain why they’re great investment options.
Why Are REITs Important in 2025?
REITs are becoming more popular, especially in 2025. Here’s why:
- Tax Benefits: REITs offer lower taxes compared to owning property directly. When you sell property, you pay high capital gains taxes. REITs help you avoid that, making them more tax-efficient. This is especially important with recent tax changes in Canada.
- Strong Sectors: Certain types of REITs are expected to do well in 2025. For example, Industrial REITs like Granite REIT are growing because of the demand for warehouses. Healthcare REITs such as NorthWest Healthcare are also growing, thanks to the aging population and the need for medical facilities.
Top 5 REITs to Recommend in 2025
Let’s look at the Best Canadian REITs 2025. These REITs are performing well and offer great potential.
1. RioCan (TSX: REI.UN) – Best for Retail/Residential Mix
RioCan is one of the largest REITs in Canada. It invests in retail and residential properties in major cities. As more people return to cities, RioCan’s properties are expected to grow in value. RioCan also offers high-dividend REITs in Canada, making it a solid choice for income-focused investors.
2. Allied Properties (TSX: AP.UN) – Best for AI Data Centers
Allied Properties focuses on tech-related real estate, including data centers. These centers are essential for AI and cloud computing, which are growing fast. Allied is one of the Best Canadian REITs 2025 if you want to invest in the future of technology and real estate.
3. Granite REIT (TSX: GRT.UN) – Best for Industrial Properties
Granite REIT specializes in industrial properties, like warehouses and logistics centers. These are in high demand because of e-commerce growth. If you’re interested in Industrial vs. Residential REITs, Granite is a top pick.
4. NorthWest Healthcare (TSX: NWH.UN) – Best for Healthcare Properties
Northwest Healthcare focuses on medical properties, such as hospitals and senior care centers. With an aging population, the demand for healthcare facilities is rising. Northwest is a great choice for a tax-efficient real estate investment.
5. CT REIT (TSX: CRT.UN) – Best for Retail/Commercial Properties
CT REIT invests in commercial real estate, mainly leased to Canadian Tire. As retail rebounds post-pandemic, CT REIT’s properties are expected to perform well. It’s a strong pick for those looking for growth in retail.
Important Factors to Keep in Mind
Here are a few important things to know about Canadian REITs in 2025:
1. REITs Avoid Foreign Buyer Ban Restrictions
Canada has a Foreign Buyer Ban on residential properties. But REITs are not affected by this. So, investors can still invest in real estate without worrying about restrictions. This is great for those looking to diversify their portfolios without facing barriers like the foreign buyer ban updates.
2. REITs vs. Direct Ownership
Owning property directly can be a lot of work. Managing tenants and dealing with repairs can be stressful. REITs vs. Direct Ownership is simple. REITs allow you to invest in real estate without the hassle. They’re managed by professionals, and you get paid in dividends. Plus, REITs are easier to buy and sell compared to physical properties.
Final Thoughts
In 2025, Canadian REITs offer great opportunities for investors. They also help diversify your investments, acting as a buffer against potential losses.
However, keep in mind that Canadian REITs come with some risks. Some REITs are sensitive to changes in interest rates, and others might charge fees that can lower your returns. Additionally, dividends from REITs are considered taxable income in Canada.
If you’re unsure where to begin, the best brokerages in the GTA can help guide you. Working with experts ensures that your interests are prioritized and that you get the best advice tailored to your needs.
