Canada: Engel & Völkers Market Report highlights growing property market

In its Canadian Market Report, Engel & Völkers analyses the country’s most important markets including Toronto, Montréal, Vancouver and Ottawa. Differences in legislation across provinces, like the foreign buyer tax in British Columbia and the non-resident speculation tax in Ontario, will continue to impact Canada’s overall real estate market in the future. “Real estate markets in Canada are so diverse that it is more important than ever to inform and advise clients on the various market nuances,” says Anthony Hitt, President and CEO of Engel & Völkers Americas.

Toronto: Condominiums especially popular in Downtown Toronto

One of Canada’s major residential locations is the financial and business centre in Toronto. The market in this region is strongly influenced by sellers due to the high demand. Downtown Toronto remains the prime residential area. The buyer group of exclusive condominiums in the city centre includes young buyers and wealthy private individuals in particular. The average price for such properties is currently around 788,000 CAD (approx. 525,440 euros).  The most sought-after location for detached properties is East York. It is the family-friendly neighbourhoods, good schools and convenient transport links to the city centre that make this area so popular. The most sought-after homes have three to four bedrooms and a spacious open kitchen. Toronto’s international buyers come primarily from China, Iran and Russia.

Vancouver: Interest in “green” developments on the rise

Located on Canada’s west coast, Vancouver remains a popular place to live. The most expensive addresses in the port city are in the district of West Vancouver, which has a mix of both old and modern buildings. Families and affluent singles in particular tend to look for property here. Another exclusive location is West Point Grey. This neighbourhood is known for its green open spaces, city beaches and proximity to the University of British Columbia. Regarding international buyers in Vancouver, the market is dominated by Chinese buyers as well as interested clients from the Middle East and Europe. The most noticeable trend at present is the growing interest in the eco-friendly construction of new developments. Buyers are also placing more and more importance on environmentally sound amenities like solar-powered technologies and rainwater cisterns. Properties currently listed with Engel & Völkers are reaching prices of up to 12.9 million CAD (approx. 8.6 million euros). 

Montréal: High demand for luxury apartments in city centre

Québec’s largest city is home to a variety of economic and industrial sectors, as well as to a wide range of cultural offerings. The city’s highest-priced location of Downtown Montréal attracts young professionals, wealthy private individuals and international buyers. The district boasts a rich array of restaurants and leisure activities. The most in-demand properties are detached houses, penthouses and small townhouses. Families are particularly drawn to the neighbourhoods of Westmount, Outremont and Ville Mont-Royal. The suburbs are known for their historic buildings with impressive architecture, their substantial plots, ample greenery, nearby parks, schools and shopping streets. International buyers are also active on Montréal’s premium real estate market, including Chinese, American and French citizens. High demand coupled with limited space for new property developments will continue to drive prices slightly in the coming months. The most expensive property currently being brokered here by Engel & Völkers is on the market for 7.9 million CAD (approx. 5.3 million euros).

Ottawa: Growing economic sector attracting more and more buyers

Canada’s capital city is growing in popularity, with the rate of population growth at 8.8 percent compared to the national average of 5.9 percent. The most desirable and expensive residential districts are McKellar Park, Westboro and Island Park. The vibrant area west of the city centre, with access to good schools and a wide abundance of restaurants and cafés, is especially sought after among couples and double-income families. Most homes are detached properties with interiors ranging from 170 to 330 square metres. Considering the favorable economic climate in Ottawa and the high rate of employment, Engel & Völkers anticipates that additional condominium developments will break ground on any remaining vacant plots in the future. Population growth will continue and sales prices will continue to rise over the course of 2019.

Outlook: Property prices continue to rise

The key findings of the Canadian Market Report published by Engel & Völkers show that Ottawa, with its healthy economy, population growth, attractive job market and high demand for condominiums, has evolved into a dynamic residential market. Toronto and Montréal remain classic seller’s markets. In Eastern Ontario and Québec, property prices are forecasted to increase further, while prices in British Columbia are expected to level off.