Defence Spending and Infrastructure Investment Drive Halifax's Commercial Real Estate Boom
Halifax is experiencing rapid economic growth fueled by defence spending and major infrastructure projects, prompting real estate experts to predict the city will emerge as a primary market comparable to Montreal and Toronto. With an anticipated influx of military-linked residents and record-low office vacancy rates, institutional investors are increasingly targeting the region.
Halifax is undergoing a period of significant economic expansion driven by defence spending and large-scale infrastructure investment, with real estate professionals forecasting that the city will establish itself alongside Canada’s largest urban centres over the next decade.
Craig Snow of REMAX Nova predicts that unprecedented growth will position Halifax as a leader among major Canadian cities such as Montreal and Toronto. Brigitte Teleu, also of REMAX Nova, noted that institutional buyers now view Halifax as a primary investment market rather than a secondary one.
A key driver of this transformation is military activity. Halifax currently hosts 20 per cent of all military personnel across Canada, with plans for further growth. The region could see an influx of 20,000 to 30,000 people directly and indirectly connected to military operations over the next two to three years. In March, two major defence-related acquisitions totalling $142.5 million were announced, comprising an $82.5-million waterfront industrial property and a $60-million apartment complex for Canadian Armed Forces members.
Beyond defence, private sector development is reshaping the local landscape. Amazon is developing a 1.2-million-square-foot operations facility valued at $200 million in Burnside Industrial Park.
These developments have tightened the commercial real estate market considerably. According to the REMAX Canada Fall 2026 Commercial Real Estate Report, Halifax recorded the lowest office availability among Canadian markets at about eight per cent in the second quarter of 2026. This marks a sharp decline from the previous year's report, which cited office vacancy in the “20-something per cent” range. Several upcoming developments are expected to add approximately 400,000 to 500,000 square feet of office space over the next three to four years.
CBRE’s 2026 Canada Real Estate Market Outlook identified Halifax as Canada’s top-performing city for commercial real estate investment returns in both 2023 and 2024. As of June 2025, the city's total commercial real estate investment return stood at 10.6 per cent. In the residential sector, the REMAX report placed multi-family vacancy at 2.7 per cent, while other forecasts suggest it could reach about 3.1 per cent by 2027.
Nova Scotia Premier Tim Houston stated he expects Halifax to grow to about one million people within the next 10 to 15 years.