Land Banking
Understand land banking in Canadian real estate — what it is, how it works, and its role in long-term development strategies.
July 29, 2025
What is Land Banking?
Gentrification is the process by which a traditionally lower-income neighbourhood undergoes revitalization and attracts higher-income residents, often leading to increased property values and the displacement of long-standing residents.
Why Land Banking Matters in Real Estate
In Canadian real estate, land banking allows investors and developers to secure prime locations before demand and values increase.
Key considerations:
- Land may be held for years before development
- Often focuses on areas projected for growth
- Requires patience and capital for holding costs
Understanding land banking helps investors evaluate long-term potential and risks.
Example of Land Banking in Action
The developer engaged in land banking by acquiring farmland on the urban fringe with plans for future residential subdivisions.
Key Takeaways
- Buying land for long-term development or resale
- Often in areas expected to grow
- Involves holding costs and market risk
- Can yield significant future returns
- Requires careful market analysis
The Yonge Corporate Centre at 4100-4150 Yonge Street. (Europro)
Jon Sailer
