Canada's Ultra-Rich Doubling Down on Luxury Real Estate in 2025
Amid economic uncertainty and market volatility, Canada's ultra-wealthy are increasingly investing in luxury real estate as a safe haven for their wealth. Discover why high-end properties in major cities like Toronto, Calgary, and Montreal are experiencing a surge in demand.
Luxury Real EstateUltrarichWealth PreservationHighend PropertiesMarket VolatilityReal EstateJul 04, 2025
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.”
Frequently Asked Questions
What is driving the surge in luxury real estate in Canada?
The surge in luxury real estate is driven by ultra-high-net-worth individuals who view these properties as a safe haven for their wealth, offering stability and capital preservation during economic uncertainty.
How are ultra-wealthy buyers financing their luxury real estate purchases?
Ultra-wealthy buyers often pay in cash, leverage existing wealth, or pull equity from global portfolios, making them less affected by interest rate hikes and short-term economic pressures.
Why are high-end neighborhoods in Toronto seeing increased demand?
High-end neighborhoods in Toronto, such as Forest Hill, Rosedale, and Bridle Path, are seeing increased demand because they offer stability, capital preservation, and generational value, making them attractive to ultra-wealthy buyers.
How are luxury real estate investments different from other investments?
Luxury real estate is seen as a tangible, enduring asset that provides confidence and is tax-free when it’s a primary residence, unlike stocks or other investment accounts.
What is the trend in the luxury condo market in Toronto?
There is a growing trend of ultra-luxury condo developments in areas like Yorkville attracting elite buyers, despite the overall condo market struggles, due to the limited supply and scarcity of high-end properties.
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