Luxury home sales increase in Ottawa, Calgary, and Edmonton amid decline in Toronto and Vancouver

A recent report showed that the luxury real estate market in Canada is witnessing significant shifts during 2026, with several medium and small cities recording strong sales growth, compared to a decline in activity in the two largest traditional luxury real estate markets, Toronto and Vancouver.

Edmonton recorded the largest increase in luxury home sales during the first four months of the year, rising by 47.7% compared to the same period last year, followed by Saskatoon at 27.3%, then Ottawa at 17.5%, and Calgary at 13.5%.

Conversely, luxury real estate sales declined by 19.8% in the Greater Vancouver area, and 16.9% in the Greater Toronto area, reflecting a change in the preferences of wealthy buyers within the Canadian market.

The report indicates that the concept of luxury real estate is no longer confined to major cities only, but has become influenced by new factors including purchasing power, population growth, interprovincial migration, the strength of local economies, and the quality of life offered by different cities.

Canadian Prairie cities benefited from local economic growth and the influx of residents seeking better opportunities and lower living costs, while Ottawa continued to attract buyers thanks to stable government jobs, growth in the technology sector, and demand for upscale properties by senior executives.

Data also showed that demand is more concentrated on the entry-level luxury homes, while higher-priced properties require longer periods to complete sales compared to previous years.

Buyers currently prefer move-in ready homes and properties that have undergone recent updates, in addition to homes that offer larger spaces and greater privacy or prime locations such as waterfronts and luxury rural properties.

Observers believe that these shifts do not reflect a decline in spending on luxury real estate as much as they reflect a redistribution of demand within the Canadian market, where investors and buyers are increasingly seeking long-term value and opportunities available outside the traditionally high-cost markets.

The report confirms that wealth remains heavily concentrated in Toronto and Vancouver, but the caution resulting from economic conditions, taxes, and financing costs has pushed an increasing number of buyers to expand their options towards cities that offer better growth opportunities and higher value for investment.