A new report shows that Calgary led Canada in luxury real estate sales growth last year, outpacing the country’s largest markets in Toronto, Vancouver, and Montreal.
Luxury real estate sales over $1 million rose 42% to 2,044 properties in YYC, including 16 sales in the $4 million-plus segment, which was double the previous year, according to Sotheby’s International Realty.
Single-family homes led the market, making up 82% of sales over $1 million, with a 34% increase to 1,686 properties. Luxury attached homes saw a 130% year-over-year jump to 287 sales, while luxury condo sales grew 31% to 71 units.
This surge was driven primarily by Calgary’s population boom. The Calgary Census Metropolitan Area (CMA) grew by 5.9% by July 1, 2023, while the city added 69,000 residents by April 1, 2024, marking 4.9% annual growth.
In December 2024, the city’s benchmark property price rose 3% yearly to $583,300. Single-family homes, semi-detached homes, and condos saw annual price increases of 7%, 8%, and 7%, respectively.
“While Calgary’s relative affordability and exceptional livability positioned it as a prime destination for immigration and interprovincial migration, its population boom intensified pressure on the city’s infrastructure, increased demands on public services, drove up the price of all housing types, and diminished its affordability advantage,” Sotheby’s wrote.
Sotheby’s predicts single-family home prices will rise further in 2025, albeit more slowly, with some buyers opting for attached homes for their affordability. Condos, though the most accessible option, accounted for just 3% of $1 million-plus sales.
Calgary’s economy is expected to outpace the national average, driven by population growth, better financing conditions, and increased construction.
Despite global trade tensions and energy market challenges, strong local fundamentals and lower interest rates are set to keep Calgary’s luxury market active in early 2025.