Canada Luxury Residential Real Estate Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Canada luxury residential real estate market is segmented by Type (Apartments and Condominiums and Villas and Landed Houses) and by City (Toronto, Montreal, Vancouver, Calgary, and Other Cities). The report offers market size and forecasts for the Canada luxury homes market in value (USD Billion) for all the above segments.

Market Snapshot

Canada Luxury Residential Real Estate Market - Market Summary
Study Period: 2018-2027
Base Year: 2021
CAGR: >10 %

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Market Overview

The Canada luxury residential real-estate Market is expected to grow at a CAGR of more than 10% during the forecast period (2022 - 2027).

Due to COVID-19, Builders and buyers have mostly shifted to virtual tours and digital contract signings. Demand for larger houses has grown as working from home becomes more prevalent. According to the Bank of Canada (BoC), the housing affordability index declined by 15.3% in the second quarter of 2020, reflecting less restrictive conditions for homeownership. Since then, it has gradually risen to exceed its pre-pandemic level in 2021 Q2.

In 2021, many Canadian housing markets are reporting an average sales price of more than USD 1 million. The Greater Toronto Area reported a 112.8% jump in sales of homes worth more than USD 3 million. Metro Vancouver saw a 75.8% increase. In the GTA and Vancouver, transactions of homes with a price point of USD 10 million saw a spike of 156% and 167%, respectively.

As reported by the industry experts, the national average home price broke an all-time record in February 2022 as Canadian home prices continue to rise across the country. For February 2022, the average home price in Canada's housing market was USD 816,720, up 20.6% from 2021. In February 2022, average Canadian home prices were up 9% from January 2022's average home price of USD 748,439.

Scope of the Report

Luxury residential real estate is defined differently across different areas, as property values, median resident income, and area development vary widely depending on the metro area. The Canada luxury residential real estate market is segmented by Type (Apartments and Condominiums and Villas and Landed Houses) and by City (Toronto, Montreal, Vancouver, Calgary, and Other Cities). The report offers market size and forecasts for the Canada luxury homes market in value (USD Billion) for all the above segments.

By Type
Apartments and Condominiums
Villas and Landed Houses
By Cities
Toronto
Montreal
Vancouver
Calgary
Other Cities

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Key Market Trends

Pandemic Accelerated Luxury Home Sales in Major Canadian Markets

Demand for Canadian luxury properties shifted into high gear from coast-to-coast in 2021 as both domestic and non-resident consumption of tangible assets such as residential real estate reached new levels. As a result of the pandemic, there has been a run on real estate that has affected every segment of the market, and the value of the property has skyrocketed, not only as a source of shelter but also as a coveted asset class with a high return on investment.

In 2021, the highest growth occurred in smaller urban markets such as Barrie, London, Kitchener-Waterloo, and Hamilton, where sales of homes priced over USD 1 million have climbed 517.8%, 255.1%, 208%, and 199.5% respectively.

In 2021, the market saw the continuation of a pandemic-fueled buying spree that began in 2020 and shattered previous records for luxury property sales and, in some cases, price points across the country. Real estate markets continued to rise despite a third and fourth wave of Covid-19 in 2021.

Home sales are pushing into higher price points across the country. The luxury segment over USD 3 million represents approximately 4% of total sales in Metro Vancouver and 1.8% of sales in the GTA. Sales over USD 1 million in Halifax-Dartmouth represent 2.2% of total sales. Records were broken for luxury sales over USD 3 million in the Greater Toronto Area in 2021, while Metro Vancouver fell short of 2016 record levels by just over 200 sales.

Canada Luxury Residential Real Estate Market - Driving Factor Trend

Technology and Social Media Driving the Market

Matterport and other 3-D tours are fairly standard these days, and now virtual reality tours are starting to take off in Canada. Offering an interactive, 3-D house tour caters to today’s busy homebuyer. Every company has also started incorporating drone photography and videography into their listings to offer potential buyers a broader perspective on the property and its neighborhood.

With commercial drone use now legal in Canada, it’s worth considering whether drone photography and videography are also helpful for real estate appraisal inspections. Drones used for real estate photography can provide detailed data for everyone involved in the purchase or sale of a home or business.

More people are using social media to shop for homes, which is increasing sales in the market. As more informed and smart consumers took use of internet platforms that made pricing and home tours more accessible, social media leads and referrals increased. 

There were 36.89 million internet users in Canada in January 2022. Canada’s internet penetration rate stood at 96.5 percent of the total population at the start of 2022. The internet users in Canada increased by 312 thousand between 2021 and 2022.

There were 33.30 million social media users in Canada in January 2022. The number of social media users in Canada at the start of 2022 was equivalent to 87.1 percent of the total population. The social media users in Canada increased by 1.1 million between 2021 and 2022.

Canada Luxury Residential Real Estate Market - Driving Factor Trend

Competitive Landscape

The Canada luxury residential real estate market is fragmented and highly competitive. Some of the key players operating in the market include Westbank Corp, Valencia Residential, Onni Group, Brookfield Residential, etc. Large companies have advantages in terms of financial resources, while small companies can compete effectively by developing expertise in local markets. The market presents opportunities for growth during the forecast period, which is expected to further drive the market competition.

Recent Developments

October 2021: The CHEO Foundation gave the first look inside Minto Dream Home, the 'Caraway.' The Minto Dream Home on Skysail Place is a customized bungalow, situated on an oversized corner lot. It's a collaboration by the Minto Group (a Canadian real estate company) with Tanya Collins Design (a residential and commercial interior designer). The Caraway features beautiful views of the Mahogany Pond with an incredible wrap-around porch to enjoy the views and the outdoors, while inside the 4,603 square-foot floor plan offers plenty of space. The Minto Dream Home has a net-zero approach to minimize its carbon footprint and improve the wellness of the planet.

March 2021: Skydev (a real estate development and construction oversight company), held a private ceremony to celebrate the start of the development’s construction. The new development, called Southfield Green, is owned by Skyline Apartment REIT (a private Canadian real estate investment trust). Once the development is complete, the complex will be managed by Skyline Living (a Canadian residential property management company). The Southfield Green development will comprise a four-storey complex with luxury suites and on-site amenities, including an indoor/outdoor lounge and terrace, a dog run, and an on-site gym and yoga studio. The site is well located within walking distance of grocery stores, restaurants, and transit. The suites will boast fantastic views of the adjacent Southfield Park.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS AND DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Dynamics

      1. 4.2.1 Drivers

      2. 4.2.2 Restraints

      3. 4.2.3 Opportunities

    3. 4.3 Value Chain/Supply Chain Analysis

    4. 4.4 Industry Attractiveness - Porter's Five Forces Analysis

    5. 4.5 Current Economic Scenario and Consumer Sentiment

    6. 4.6 Luxury Residential Real Estate Buying Trends - Socioeconomic and Demogpaphic Insights

    7. 4.7 Government Initatives, Regulatory Aspects for Residential Real Estate Sector

    8. 4.8 Insights on size of real estate lending and loan to value trends

    9. 4.9 Insights on interest rate regime for general economy, and real estate lending

    10. 4.10 Insights on captial market penetration and REIT presence in residential real estate

    11. 4.11 Impact of COVID - 19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Type

      1. 5.1.1 Apartments and Condominiums

      2. 5.1.2 Villas and Landed Houses

    2. 5.2 By Cities

      1. 5.2.1 Toronto

      2. 5.2.2 Montreal

      3. 5.2.3 Vancouver

      4. 5.2.4 Calgary

      5. 5.2.5 Other Cities

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration

    2. 6.2 Company Profiles

      1. 6.2.1 Westbank Corp

      2. 6.2.2 Valencia Residential

      3. 6.2.3 Onni Group

      4. 6.2.4 Brookfield Residential

      5. 6.2.5 Mattamy Homes

      6. 6.2.6 Minto Group

      7. 6.2.7 Oxford Properties Group

      8. 6.2.8 The Daniels Corporation

      9. 6.2.9 Amacon

      10. 6.2.10 Concord Pacific*

    3. *List Not Exhaustive
  7. 7. FUTURE OF THE MARKET

  8. 8. APPENDIX

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Frequently Asked Questions

The Canada Luxury Residential Real Estate Market market is studied from 2018 - 2027.

The Canada Luxury Residential Real Estate Market is growing at a CAGR of >10% over the next 5 years.

Westbank Corp, Valencia Residential, Onni Group, Brookfield Residential, Mattamy Homes are the major companies operating in Canada Luxury Residential Real Estate Market.

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