Downtown Toronto has, in my view, gone through one of the most interesting market resets of any urban core in North America. As a real estate professional with over 20+ years of experience in the industry, I have first-hand witnessed downtown’s evolution from a quiet financial district after dark into a 24/7 residential, cultural and employment hub. In my daily practice, I am now seeing something I have not seen in many years: real negotiating leverage for buyers in the downtown condo market, with most units selling below asking and motivated sellers across virtually every building.
Why this market moment matters downtown
As I have extensively discussed in my previous analyses, Toronto’s condo market is in a buyer’s market with an impending supply crisis on the horizon. Nowhere is that story more visible than downtown. The supply that flooded the market in 2023 and 2024 from previously launched pre-construction deliveries is now being absorbed, but new project starts have collapsed. In my opinion, buyers who act during this absorption window — before the next supply tightening — are positioning themselves on the right side of the next cycle.
Downtown Toronto is, of course, many neighbourhoods. The Financial District, Entertainment District, King West, Yorkville, St. Lawrence, the Waterfront, Liberty Village and the rapidly evolving East Bayfront and Distillery South all have very different price points, tenant profiles and long-term outlooks. In my daily practice, I am seeing the biggest negotiating opportunities right now in buildings completed in the past three years where original investor-owners are looking to exit. As a real estate professional with over 20+ years of experience, I always tell my clients that the best deals in any market come from understanding seller motivation, not just listing prices.
For end-users, downtown ownership in 2026 means something different than it did five years ago. Hybrid work has changed the calculus, but it has not eliminated the appeal of walking to dinner, walking to the lake, walking to a concert, or being a short ride from major hospitals, universities and offices. I have first-hand witnessed many of my clients who initially planned to leave downtown realize that what they really wanted was a slightly larger unit downtown rather than a long commute from the suburbs.
For investors, downtown condo yields have improved meaningfully as purchase prices have softened while rents have remained relatively firm. In my view, the math is worth a second look for anyone who dismissed downtown investment property over the past two years. That said, investors must look closely at maintenance fees, special assessments, and building reserve funds. I have been in situations before where what looked like a strong yield on paper got eroded by a building’s underfunded reserve.
For first-time buyers, downtown offers something that is unusual: pricing on entry-level units that, in some cases, rivals or undercuts comparable units in 905 submarkets when measured on a per-square-foot basis. Combined with FHSA savings, first-time buyer programs and today’s buyer’s market conditions, the path to downtown ownership is more accessible than it has been in years.
The articles below explore each of these threads in greater depth. They are written from the perspective of what I see every week in my daily practice — the buildings I trust, the buildings I caution clients on, the negotiating tactics that are actually working today, and the longer-term outlook I am giving my own clients when they ask the hard question: should I buy now?
Articles in this series
Articles in this series are being added regularly. Check back soon.
Work with SP Singh Ahluwalia
Given the continuously evolving nature of the real estate market, the decision to buy or sell real estate should take into careful consideration several factors, and it is crucial to carefully evaluate your financial situation, long-term goals and local market conditions before making a decision. As a real estate professional with over 20+ years of experience in the industry, I have first-hand witnessed the housing affordability crisis and worked with both buyers and sellers in this market in my every-day practice. In such a market, it is essential to get the right advice. If you need expert guidance for your buying and selling needs, please don’t hesitate to reach out to me through realtorsp.ca.
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SP Singh Ahluwalia 