Engel & Völkers Unveils 2024 Mid-Year Luxury Real Estate Market Report

Toronto – Engel & Völkers has released its 2024 Mid-Year Luxury Real Estate Market Report, indicating robust performance in Canada’s high-end property sector. The report reveals that luxury properties in Halifax, Ottawa, Toronto, and Vancouver are exceeding market expectations, particularly in the $1 million-plus segment.

One significant aspect of the report addresses the misconceptions surrounding The Prohibition on the Purchase of Residential Property by Non-Canadians Act, also known as “Canada’s foreign buyer ban.” The legislation, aimed at limiting foreign ownership of residential properties, has influenced Canada’s welcoming image and disrupted the condo market, especially in the new construction sector. Additionally, the report notes a decline in domestic investor activity, with condo sales lagging as buyers anticipate interest rate adjustments.

“Canada’s luxury real estate markets are demonstrating impressive resilience despite the slowdown in overall sales. While interest rates impact the conventional market, particularly first-time buyers, luxury buyers often pay in cash and are therefore less affected,” said Anthony Hitt, president and CEO of Engel & Völkers Americas. “We anticipate that Canada’s luxury markets will remain stable as real estate continues to be an appealing and safe investment.”

Regional Performance:

• Halifax: The market saw a five per cent increase in units sold priced over $1 million in the first half of 2024 compared to the same period last year.
• Ottawa: Home prices in Ottawa rose by eight per cent for residential properties priced between $1 – 1.99 million from January to June 2024.
• Toronto: Properties priced at $8 million and above experienced a 4.73 per cent increase in value compared to the first half of last year.
• Vancouver: Despite an increase in listings and a decrease in units sold, the average sales price of $2 – 3.99 million residential homes grew by 4.72 per cent in the first half of 2024.

The report underscores the resilience of Canada’s luxury real estate markets amidst broader economic challenges. As interest rates impact the conventional market, the luxury segment remains a stable and attractive investment option.

For more detailed insights, the complete 2024 Mid-Year Canadian Luxury Real Estate Market Report is available through Engel & Völkers.