February 23, 2026
SUMMARY
Ontario’s ICI construction investment totalled $35.36 billion in 2025, up 6.1% from 2024. Growth was driven by commercial and institutional projects, with strong gains in office buildings and schools.
While overall investment increased, the pace of growth slowed compared to previous years. Kingston, Kitchener-Cambridge-Waterloo, and London recorded the strongest regional gains.
ONTARIO ICI CONSTRUCTION INVESTMENT: 2025 OVERVIEW
Total ICI investment in 2025 reached $35.36 billion, up 6.1% from 2024. That is an increase of $2.06 billion year over year.
Growth was mainly driven by the commercial and institutional sectors.
The commercial sector led the way, accounting for 48.7% of total investment. It also posted the largest increase in dollar terms, with annual growth of 6.41%.
The institutional sector recorded the strongest percentage growth, rising 12.81% year over year. Total institutional investment reached $9.97 billion in 2025.
Although overall investment increased in 2025, the pace of growth slowed during the year. In previous years, annual growth was more stable, averaging around 9% to 10%. In 2025, the average year-over-year growth rate was 6.43%. For the first time since mid-2021, growth briefly turned negative during the year.
Among the three components, commercial construction remained the most stable in terms of rolling year over year growth. Institutional and industrial investment showed greater swings.
PERFORMANCE BY TYPE OF BUILDINGS
Office buildings attracted the highest absolute investment in 2025, followed by schools and factories.
Office construction increased 21.6% compared to 2024. About 73% of office investment was in Toronto. This rise likely reflects renewed demand for office space as more companies expand return-to-office policies.
Investment in hotels and restaurants rose 11.64%. Outside Toronto, the highest hotel investment levels were in Hamilton, London, and Kitchener-Cambridge-Waterloo. St. Catharines recorded the largest percentage increase, nearly tripling its 2024 level.
In the industrial sector, transportation projects performed strongly, with investment up 33.6% year over year. Factory investment declined by 11.1%.
Within the institutional sector, schools and welfare homes led growth. Investment in schools rose 24.1%, while welfare homes increased 20.2%.
The weakest-performing building types in 2025 were churches, service stations, government buildings, factories, and warehouses.
INVESTMENT TRENDS BY CENSUS METROPOLITAN AREA
Kingston was the strongest-performing CMA in 2025, with total ICI investment rising 59.7% from 2024. Growth was driven mainly by institutional and industrial projects, particularly transportation, schools, and warehouses.
Kitchener-Cambridge-Waterloo and London followed, with growth of 33.6% and 32.6%, respectively. St. Catharines-Niagara recorded a 32.2% increase, while Brantford rose 26.1%.
Institutional construction led growth in Kingston, Kitchener-Cambridge-Waterloo, and Brantford. In St. Catharines-Niagara, commercial construction was the main driver. In London, growth was primarily supported by the industrial sector.
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FOR MORE INFORMATION, CONTACT:
Gargi Bharti
Economic and Research Project Lead
Ontario Construction Secretariat (OCS)
180 Attwell Drive, Suite 360, Toronto, ON M9W 6A9
P 416.620.5210
gbharti@iciconstruction.com
