Canada's Ultra-Rich Doubling Down on Luxury Real Estate in 2025
While much of Canada’s housing market remains in a holding pattern due to economic uncertainty and President Donald Trump’s trade policies, the country’s ultra-luxury real estate sector is defying the broader slowdown. Homes priced over $10 million are experiencing a surprising uptick in activity—particularly in major cities like Toronto, Calgary, and Montreal—despite headwinds affecting nearly every other tier of the market.
Although transaction data in this elite bracket is limited and often shrouded in privacy, industry experts say it’s clear: Canada’s wealthiest individuals are pouring money into top-tier properties as a strategic move to preserve and grow their wealth. According to Effi Barak, president of Sotheby’s International Realty Canada, ultra-high-net-worth buyers are showing “strategic adaptability and financial resilience” by treating real estate not as a luxury, but as a safe haven during turbulent times.
With volatility in the stock market and concerns about global economic stability, the mega-wealthy are increasingly turning to real estate as a tangible, reliable asset. High-end neighborhoods in Toronto—such as Forest Hill, Rosedale, and Bridle Path—are seeing continued demand despite Canada’s broader affordability challenges. According to Engel & Völkers CFO Andrew Dinsmore, this surge reflects the ultra-rich preference for assets that offer stability, capital preservation, and generational value.
“These buyers are not financing their purchases with conventional mortgages,” Dinsmore explains. “They’re leveraging existing wealth, paying in cash, or pulling equity from global portfolios. They’re insulated from interest rate hikes and less influenced by short-term economic pressure.”
Unlike average homeowners, buyers in this segment aren’t driven by necessity or lifestyle alone—they’re acting with long-term investment strategies in mind. Many own multiple properties across countries, treating luxury homes as part of an international portfolio. Toronto broker Jason DeLuca emphasizes this distinction, noting that top-tier buyers often include lawyers, wealth managers, and advisors in the real estate process to ensure the purchase aligns with larger financial goals.
“With stocks, your net worth can drop overnight,” DeLuca says. “Real estate offers a different kind of confidence. It’s tangible, enduring, and a tax-free asset when it’s a primary residence—something no investment account can guarantee.”
DeLuca also points out a growing trend: ultra-luxury condo developments in areas like Yorkville are beginning to attract elite buyers, even as Toronto’s overall condo market struggles. With limited supply and virtually no mass development in the $10-million-plus range, luxury buyers recognize the scarcity and value of high-end properties, moving quickly when the right opportunities arise.
“There’s no factory producing rows of $15 million homes,” DeLuca says. “The rich understand that. When something premium hits the market, it gets snapped up.”
Ultimately, luxury real estate in Canada is evolving from a status symbol into a strategic asset class. For the one percent, homes are no longer just places to live—they’re vehicles for wealth management, intergenerational planning, and economic stability. And unlike average buyers who are waiting for interest rates to drop, Canada’s ultra-rich are already in motion.
“The wealthy don’t panic,” says DeLuca. “They prepare. They act. They buy. While others sit on the sidelines, they see opportunity—and take it.”
