Montreal Real Estate: 2025 Spotlight on Luxury

Declining interest rates have served to bolster activity in the luxury segment of the Montreal real estate market in the first two months of the year, with sales building on momentum gained in the final quarter of 2024. Twenty-five luxury properties sold over the $2.5 million price point in January and February of this year, up from 14 sales during the same period in 2024, representing a percentage increase of close to 80 per cent.

Most high-end sales have occurred in the city of Montreal, where Westmount, Outremont, Town of Mont Royal, and Ville Marie (Westmount adjacent) saw the greatest uptick in activity. West Island destinations such as Beaconsfield, Senneville, and Pointe Claire were also popular with upper-end purchasers seeking more land.

An ample supply of inventory exists in the overall Montreal real estate market, with almost 120 properties currently listed for sale, an increase over the 86 properties one year ago. Detached homes remain most sought-after, with well-decorated turnkey properties generating the greatest buzz, and some moving in multiple offers. Condominium sales have faltered in recent years, as buyers have become increasingly concerned over rising assessment costs as existing condominiums are impacted by the provincial government’s Bill 16. The Bill mandates reserve fund studies be carried out every five years to ensure the reserve can handle any major repairs or replacements required to the condominium.

Several trends have presented themselves in the Montreal real estate market over the past year, including an increasing number of empty nesters and retirees downsizing to pied-a-terres and buying property outside the country. There has also been an upswing in demand for luxury duplex and triplexes as buyers move to accommodate older children and parents in adjoining units.

While borrowing has vastly improved over the past year, the Montreal real estate market is still facing headwinds heading into 2025, especially given the ongoing threat of tariffs from our US neighbours. However, once economic stability returns to city, the real estate market is expected to blossom. Immigration and in-migration growth between July 1, 2023 and July 1, 2024 added almost 132,000 people to the Montreal CMA, bringing the population to more than 4.5 million. Pent-up demand and an influx of new buyers are forecast to propel home-buying activity from the bottom up, ideally positioning the luxury segment for the future.

Have questions, or are you ready to engage in the market? Connect with a RE/MAX agent today.