Why Land Entitlement Is a Smart Real Estate Strategy in Ontario

Real estate investors in Ontario are constantly searching for profitable real estate strategies that deliver high ROI with less competition. While multifamily rentals, fix-and-flip, and BRRRR investing dominate the headlines, one powerful but overlooked strategy is land entitlement for residential development—especially in high-growth regions of Ontario.

This blog will show you why entitling land in Ontario offers exceptional upside, how the process works, and how it compares to traditional real estate investing methods.

What Is Land Entitlement?

Land entitlement refers to obtaining the legal and regulatory approvals needed to develop raw or underutilized land. In Ontario, this includes:

• Zoning approvals in Ontario

• Official Plan amendments

• Site plan control

• Environmental clearance

Once a parcel is entitled, it becomes “shovel-ready land”, often increasing its value dramatically. This strategy is particularly attractive in Ontario growth corridors where land is scarce and housing demand is surging.

Ontario Land Entitlement Process

The land development approval process in Ontario follows the guidelines of the Planning Act. Key steps include:

1. Pre-consultation with the municipality

2. Submitting a land use planning application

3. Holding community consultation meetings

4. Receiving conditional approvals

5. Final registration and entitlement

Timelines range from 12 to 36 months, and land entitlement costs in Ontario can range from $50,000 to $200,000+, depending on the project scope.

Why It Matters in 2025: Ontario’s Housing Shortage

Ontario’s real estate market continues to experience a chronic supply shortage. The province needs to build 1.5 million new homes by 2031 but is far behind that goal.

In 2023, only 17,920 single-family homes were completed, and with 167,875 immigrants settling in Ontario in 2025 alone, the pressure on housing supply is increasing. This makes residential land development opportunities especially lucrative in suburban and secondary markets like:

• London

• Windsor

• Barrie

• Peterborough

• Orillia

These areas offer lower acquisition costs and faster municipal response times, creating high-return land investment opportunities in Ontario.

Government Incentives for Developers

Provincial policies like the More Homes, More Choice Act and the Building Faster and Smarter Act, 2025 offer fast-tracking tools for builders and land investors.

Key benefits include:

• Reduced development charges

• Streamlined land rezoning approvals

• Grants and infrastructure funding for residential land projects

If you're looking for low-competition real estate niches in Canada, these legislative changes create ideal conditions for land entitlement.

Land Value Appreciation

One of the most compelling reasons to invest in entitlement-stage land in Ontario is the potential for rapid appreciation.

For example:

• Buy raw land for $1,000,000

• Invest $200,000 in planning and consulting

• Post-entitlement resale value: $2.5 to $3 million

• Net return: 100–150% within 2–3 years

That’s significantly higher than what’s typical in Ontario real estate flipping or long-term rental investing.

Land Entitlement vs. Other Real Estate Strategies

Strategy	Typical ROI	Time Frame	Competition	Effort Level
Multifamily investing	6–10% annually	Long-term	High	High
House flipping in Ontario	10–20% per deal	6–12 months	Moderate	High
BRRRR method	8–12% blended return	Long-term	High	High
Land entitlement	40–150% return	1–3 years	Low	Moderate

The data speaks for itself—entitling development land in Ontario is an excellent way to stand out from overcrowded investment niches.

Risks and Considerations

Every investment carries risk. For land entitlement, the key ones are:

• Municipal delays

• Public opposition to rezoning

• High carrying costs

• Regulatory unpredictability

• Market slowdowns

However, proper due diligence, community engagement, strong relationship with the city, and understanding Ontario land use planning can mitigate most of these issues.

If you’re looking to diversify your portfolio, generate strong returns, and work in a less saturated space, investing in entitled land in Ontario is a compelling option.

It combines:

• Market timing

• Government support

• Explosive population growth

• Low inventory of serviced land

This is one of the best-kept secrets in Ontario real estate investing for those willing to learn the process and partner with experienced professionals.

Sources

1. Urban Land Institute Housing Research

2. Ontario Housing Supply Action Plan

3. CMHC Housing Market Outlook

4. Statista: Immigrants by Province

5. WOWA Ontario Housing Market Update

6. REMI Network: Ontario Housing Legislation

7. Real Estate Wealth Magazine on Land Entitlement 

8. Ontario Planning Act Legislation

9. Globe and Mail Editorial on Housing

10. Statistics Canada Labour Force Survey

Published: June 6, 2025

By Hisham Kufaishi

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