From January to May this year, there was an average of 20 real estate, rental or leasing insolvencies in Canada every month where companies either sought bankruptcy protection or filed creditor proposals.
At this pace, Canada is on track to reach about 240 corporate real estate insolvencies in 2024, which would be 57% more than in 2023 and 13% more than in 2009, when a wide swath of businesses ran into problems owing to the financial crisis and global recession. See Real estate insolvencies in Canada set to surpass levels of global financial crisis:
And that does not include the number of developers and projects that have been forced into receivership for not paying bills. The Office of the Superintendent of Bankruptcy does not include receiverships with its publicly available bankruptcy statistics. However, insolvency experts say they are seeing more projects go into receivership.
So far this year, the real estate sector accounts for 55 per cent of the receiverships recorded by Insolvency Insider Canada, a website that tracks the largest insolvencies in the country. That compares to 30 per cent last year and 33 per cent in 2022.
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