Canada has continually impressed as a hot housing market, especially to those who wish to invest in luxury real estate in high end places such as Montreal. Current statistics suggest the country’s luxury sales are on a sharp downward trend in the first half of the year, but Montreal seems to have defied the markets, since for the very same period, it recorded an increase not just in the total number of sales, but also in the total number of units sold.
This is a subtle indication at just how stable Montreal luxury real estate is, and it can offer a rough overview as to why it is such a hot destination for those interested in venturing into the luxury real estate market in Canada.
Quite a number of things may be responsible for Montreal’s defiance of the market, which enabled it to continue thriving while the rest of the markets were taking a hit. As a responsive investor, it is imperative to know some of these factors so that you take them into account when you make the decision to also take a plunge into the Montreal real estate market.
To begin with, a healthy economy and strong job gains have made it possible for local consumers to have confidence in their ability and stability for the near future. This in turn, has accelerated luxury market activities, which led to a hike in prices as well as the usual inflamed bidding wars in some of Montreal’s prime locations such as TMR condos, Outremont real estate and Westmount.
It is refreshing to note that unlike other luxury housing markets in Canada, the Montreal luxury market is still dominated by local demand, though there are strong reports from industry insiders which suggest that increasing number of foreign buyers are whetting their appetite for the Montreal properties. In the meantime, the luxury condo market has recorded a sharp move up northward of 40% in summer alone. This features about fourteen units being sold for over $1million. This is by far much beyond the industry’s projections and there are very strong indications that the trend will continue in Montreal even as the rest of the markets tumble.
With the economic and market conditions continuing to post a positive outlook and gain more traction, and also with the fact that Montreal’s luxury real estate market is priced competitively relative to other markets in other Canadian cities, Montreal’s high end real estate market is still expected to continue with its movement north up to the end of the year.
Top Montreal Neighborhoods
If you are considering investing in the Montreal luxury real estate, you should be smart enough to be strategic with your investment. The fact is that though the market is hot in general, there are certain neighborhoods that are sticking out more than others, and hence, they come with better investment prospects. These are the neighborhoods you should watch out for because you are likely to get a higher return on your investments if you go for them as opposed to going for just any other. Here is a brief look at some of the top Montreal neighborhoods you may want to go for:
Cote Des Neiges
Cote Des Neiges is one of the fast rising neighborhoods worth considering for luxury real estate investing in Montreal. The median price of a condo is $330,000 and sales are up by up to 18%, making it among the top three performers in the Greater Montreal Area. The condo appreciation rate stands at 9% and is bound to hit a double digit by the beginning of next year, thus making it very tempting, given that the general trend of the housing market in the Greater Montreal Area is headed north.
This quiet beautiful neighborhood on the east-end of Greater Montreal Area and between Olympic Stadium and Little Lilly is another hot choice to consider for luxury real estate investment in Montreal. What makes it a good choice is the presence of affordable residential borough that feature a variety of both new and old homes with varied architectural styles. If you are interested in luxury real estate, then you understand just how such a combination can be manipulated to come up with or improve existing properties to completely unique and charming units.
Besides, this area has everything going good for luxury real estate investing, with almost all things the potential buyer may look out for. These include spacious public spaces, community gardens, swimming pools and several parks. The average home price in Rosemont is $490,000, but if you factor in a three year price change of 7%, and in a hot market like Montreal, you can bet that investing here will not be a bad choice.
Verdun is one of the oldest historical districts in Montreal and currently one of the hottest luxury real estate markets. It has a bilingual community and also graced with a plethora of amenities that makes life worth living in the neighborhood. The region is known to attract employees in the medical industry given its close proximity to McGill University’s medical research center.
From an investor’s point of view, the purchasing power in such an area must be very high because medical practitioners are some of the best paid workers in Canada. The average price of homes in the area is $478,000 and the three-year price change stands at 9.1%. With the trends in the market, this may hit a double digit in the next three years, and is thus such a great prospect for luxury real estate in Montreal.
Pointe St Charles
Pointe St Charles is another great location to consider for luxury real estate investing in Montreal. Its statistics are so encouraging, with virtually all the major metrics posting double digit growth. The increase in sales, home appreciation and condo appreciation are all above 10%, and these are the kinds of figures luxury real estate investors are usually interested in. Some of the top styles currently being preferred in this area include town houses and industrial-style lofts such as those found along de Sebastopol Street and Charlevoix metro areas. With median condo prices being just $344,000, there is no doubt that you can expect some decent returns, should you decide to invest in this area.