If you’re exploring real estate investment on Vancouver Island, Saanich development properties are a promising choice in 2025. With a growing population, progressive municipal planning, and a desirable location just north of downtown Victoria, Saanich offers a unique mix of urban convenience and suburban charm. For both seasoned investors and newcomers, Saanich’s current trends and strong return on investment (ROI) potential make it one of the top areas to consider for development projects.
Why Saanich?
Saanich is the largest municipality in the Greater Victoria region, offering diversity in its neighborhoods, demographics, and land use. Investors are drawn to the area for several reasons:
- Land Availability: Compared to central Victoria, Saanich still has room for development.
- Stable Market Growth: Home values and rental demand continue to rise.
- Strategic Location: Close to the University of Victoria, major shopping centers, and downtown Victoria.
- Sustainable Planning: Saanich’s commitment to green building and densification aligns with long-term investment goals.
Whether you’re interested in subdividing a lot, building multi-family housing, or flipping single-family homes, Saanich has viable opportunities. Call us for quick Buying and Selling Properties.
ROI: Return on Investment for Development in Saanich
1. Consistent Property Appreciation
Saanich properties have steadily appreciated in value over the past decade. In 2025, the trend continues, with average home prices in areas like Gordon Head and Cadboro Bay showing year-over-year increases of 6-8%.
2. High Rental Demand
Proximity to the University of Victoria and Camosun College keeps rental demand high. Investors can expect low vacancy rates and premium rental prices, especially in student-friendly areas like Shelbourne and Mount Tolmie.
3. Multi-Unit Developments
Zoning in some parts of Saanich allows for duplexes, triplexes, and garden suites. These development types offer excellent ROI by maximizing land use and generating multiple income streams.
4. Fix-and-Flip Opportunities
Older properties in mature neighborhoods like Maplewood or Cedar Hill are perfect for cosmetic upgrades or full renovations, yielding fast and profitable flips in an active market.
5. Pre-Construction Investments
New developments in Royal Oak or Uptown can offer strong pre-sale ROI, especially when bought early in the planning stages.
Saanich Real Estate Trends in 2025
Understanding where the market is heading helps you make smart investment decisions. Here are the top trends influencing Saanich development properties in 2025:
1. Densification and Zoning Flexibility
Saanich is embracing smart growth. The municipality is actively encouraging duplexes, townhouses, and multi-family developments in previously single-family zones. The Shelbourne Valley Action Plan, for example, is transforming the corridor into a walkable, mixed-use hub.
2. Green Development
Energy-efficient design and sustainable construction are leading trends. Homes equipped with features like heat pumps, solar energy systems, and high-quality insulation are especially attractive to environmentally conscious buyers and renters.
3. Aging Population
With more retirees settling in the region, there is increasing demand for single-level homes, accessible units, and smaller footprints with minimal maintenance.
4. Remote Work Lifestyle
Post-pandemic, buyers are looking for properties with home office space, quiet surroundings, and proximity to green areas like Swan Lake and Mount Douglas.
5. Increased Interest in Garden Suites and Laneway Homes
Bylaw changes in many neighborhoods now allow for detached accessory dwelling units (ADUs), adding both rental income and resale value. Learn more about our local property downsizing services.
Best Areas in Saanich for Development
1. Gordon Head
- Close to UVic
- High rental yield
- Great for student housing or secondary suites
2. Royal Oak
- Central location
- Excellent for multi-unit or townhouse developments
- Access to major transit routes and amenities
3. Broadmead
- Upscale area
- Ideal for luxury developments or retirement properties
- High resale value
4. Cedar Hill
- Classic mid-century homes with large lots
- Good for subdivision or redevelopment
5. Uptown/Saanich Core
- Targeted for mixed-use and high-density zoning
- Walking distance to shopping and services
- Strong potential for appreciation
Factors That Affect ROI on Saanich Development Properties
1. Zoning Regulations
Zoning laws vary across Saanich. Confirm whether a property allows for duplexes, triplexes, or garden suites before purchasing.
2. Property Condition
Older homes can provide value-add opportunities, but may require structural or code-compliant updates.
3. Location Amenities
Properties near schools, parks, and transit lines see faster tenant placement and stronger resale value.
4. Renovation Costs and Timelines
Delays in permitting or construction can affect your ROI. Work with experienced local contractors and realtors to streamline the process.
5. Market Timing
Buying in a dip or before new zoning changes can yield substantial long-term gains.
Tips for Investing in Development Properties in Saanich
1. Start with a Land Use Plan Review
Check the Saanich Official Community Plan (OCP) to understand future zoning and development opportunities.
2. Work with a Local Realtor
Experts like Jean Medland bring local knowledge, including which neighborhoods are trending and where new policies are being rolled out.
3. Get Pre-Approved for Financing
Development financing can differ from traditional mortgages. Get your financing lined up in advance.
4. Do a Cost-Benefit Analysis
Before committing to a project, calculate your total costs (including renovations and permits) and expected returns.
5. Consider Partnering
If the project scope is large, consider partnering with a builder or investor to spread the cost and risk.
Saanich Development Property Types to Consider
1. Vacant Lots
Ideal for custom builds or small developments. Look for lots in transition zones.
2. Older Homes on Large Lots
Can be renovated, subdivided, or replaced with multi-unit buildings.
3. Duplexes and Multi-Family Units
High rental income and typically lower per-unit maintenance costs.
4. Commercial-to-Residential Conversions
In core areas like Uptown, older commercial buildings may be eligible for residential conversion.
5. Pre-Construction Units
Buy in early and benefit from appreciation before the project is completed.
Final Thoughts
The landscape for Saanich development properties in 2025 is full of opportunity. Whether you’re building new, renovating, or investing in pre-construction, the ROI potential in Saanich is strong for the long term.
With smart municipal planning, sustained population growth, and high demand for both rentals and ownership, Saanich stands out as one of the top real estate markets on Vancouver Island. To maximize your investment, work closely with a knowledgeable professional like Jean Medland, who understands the market nuances, zoning laws, and emerging trends.
Now is a great time to explore what Saanich has to offer—and to invest in a community that’s building toward the future.
FAQs About Saanich Development Investments
1. Is Saanich a good place for real estate development?
Yes. With favorable zoning, a growing population, and strong rental demand, Saanich offers a reliable ROI.
2. What is the average ROI on development properties in Saanich?
Depending on the project type, investors may see annual returns between 6% and 12%, with higher potential in strategic locations.
3. Can I build a garden suite in Saanich?
Many neighborhoods now allow garden suites or detached ADUs, depending on lot size and zoning.
4. How competitive is the development market in Saanich?
Interest is growing, especially in transitional zones. Working with a local expert can give you a competitive edge.
5. What permits are required for development?
You’ll need development and building permits, and possibly rezoning or variance applications, depending on your project.
6. Are there areas of Saanich with more flexible zoning?
Yes. The Saanich Core, Shelbourne Corridor, and Uptown area are subject to densification policies and zoning changes.
7. How long does the development approval process take?
It varies. Simple renovations may take weeks; larger projects with zoning changes can take months.
8. What is the best investment strategy in Saanich?
Buy-and-hold in a growth area or add density (like suites or duplexes) to increase income and value.
9. Can I do short-term rentals in Saanich?
Short-term rentals are regulated. Always check municipal guidelines to avoid fines or restrictions.
10. How do I get started?
Connect with Jean Medland – Southern Vancouver Island Realtor to review your goals, budget, and the best development opportunities in Saanich.