Montreal's Market Heats Up

The last five years have brought consistent growth to Montreal’s housing market thanks to the booming tech sector, a surge of millennial buying power, and a strong market in the northeastern province of Quebec.

While the luxury market in Quebec might not be directly compared to more established markets like New York or London, it’s not one to count out. A definite, growing demand has created an appetite for Luxury in the French-speaking city. Consuming a larger portion of the market over the last five years, Luxury home sales have driven up prices throughout metro Montreal.

Homes selling for more than $1 million increased by 65% between 2014 and 2019. And while prices are continuously being driven up, there are plenty of opportunities for investors to grab a piece before the market reaches its peak.

Looking towards future projections, Montreal is steadily catching up with higher-priced Canadian cities like Vancouver which experienced a price explosion between 2015 and 2018 due to rapid foreign investment which was followed by plummeting prices.

Is Montreal on track for a similar scenario?

Experts agree it isn’t, for now at least.

“I don’t think there is a bubble. I think Montreal is one of those cities that has always been undervalued,” considering the quality of life it offers, said Randy Naami, a broker at Sotheby’s International Realty Canada.

Aside from the beautiful scenery locals feel spoiled by, Montreal benefits from low unemployment, a consistent influx of internationals, and a stable economy.

Another appeal of Montreal? No Foreign Buyers’ Tax… yet.

Montreal has yet to adopt a foreign buyers’ tax, unlike its neighbors Toronto and Vancouver. Investors are taking advantage of the currency values, low financing rates, and new inventory coming down the pipeline.