Canada’s ultra-luxury real estate market seems to be confirming the maxim that the mega-rich are different than the rest of us.
While other sectors threaten to flat-line under the burden of President Donald Trump’s trade wars and the overall market slowdown, home sales in the uppermost tier – generally categorized as those above $10+ million – are experiencing a surprising uptick in some larger cities.
Data is limited, as in this elite category there’s only a smattering of transactions even at the best of times. And it’s not unusual for some of these to be off-market, with moneyed sellers prioritizing privacy. But statistics currently show that there’s more activity this year than in the previous two in this high-flying market slice.
Effi Barak, president of Sotheby’s International Realty Canada, confirms that “even amid the uncertainty,” select segments of the top-tier bracket remain resilient, outperforming the broader marketplace and standing out as “outliers of greater stability” in an otherwise darkening landscape.
Real estate as a safe haven
Why is the ultra-luxury market currently popping up as one of the country’s rare real estate strongholds? Bottom line, experts believe that Canada’s richest buyers – that privileged one per cent – increasingly view the housing market as the safest haven for their wealth. They appear to be using real estate as a flight to safety, strategically shifting capital to luxury housing, with perceived stability over stocks and other investments in uncertain economic times.
The topmost sector has strong long-term value potential, underscoring the strength of this elite consumer group in the face of turmoil, observes Barak. “Ultra-high-net-worth homebuyers are demonstrating strategic adaptability and financial resilience.”
Tangible assets in times of uncertainty
Toronto’s ultra-luxury single-family-home market is among the country’s isolated pockets of resilience, poised to heat up, Barak predicts. Sotheby’s 2025 first quarter report on the top-tier luxury market noted that Calgary and Montreal’s ultra luxury markets are also showing continued resilience.
Other premium brokerages report similar findings. Engel & Völkers CFO Andrew Dinsmore believes that sustained demand from well-capitalized buyers, particularly for bespoke homes in enclaves of wealth like Forest Hill and Rosedale in Toronto where inventory is limited, indicates a growing preference for tangible assets like real estate, which are viewed as more secure – a way to “diversify, park capital, preserve wealth, and ride out stock market turbulence.”
Rest assured that a local multimillionaire like Drake isn’t missing sleep worrying about losing any equity in his $100-million mansion in the city’s posh Bridle Path neighbourhood.
The unique profile of the ultra-rich buyer
Dinsmore explains that the purchase decisions and needs of the extremely wealthy are leagues away from the norm. Driven by an investment-focused mindset, “they’re not just looking for a roof over their heads.” They’re thinking long-term and likely have multiple properties and an international portfolio – perhaps homes in Toronto and Vancouver, a cottage in Muskoka, a villa in Italy.
“Ultra-rich buyers are more global. They have that flexibility,” continues Dinsmore. “And they’re not hit as hard by interest rates. They’re not going to the local bank to get a mortgage.”
Having greater resources and more avenues to finance purchases, including paying in cash or pulling equity from other properties or investments, they can remain largely insulated from economic headwinds.
While not a liquid asset, property offers less volatility along with greater long-term security and value, which the financial markets currently lack, Dinsmore points out.
Jason DeLuca, broker/advisor with Engel & Völkers’ Toronto Central office, is more direct.
“With stocks you can wake up next morning and a quarter of your wealth is gone. That doesn’t happen with real estate…It offers a level of confidence. It’s tangible, will be there for generations, and can be passed to your children.”
The fact that a primary residence is tax-free is also a huge benefit, of course.
From lifestyle to strategy
The condo market hasn’t traditionally been a focus for the uppermost tier in Canada. But DeLuca thinks that’s changing, with ultra-luxury condo developments aimed at the top of the market being developed in trendy Toronto neighbourhoods like Yorkville, despite the city’s killer condo slump.
Whatever the type, there’s a limited supply of premium properties in the prime-luxury sector, “no subdivisions of $10+ million homes being built,” DeLuca asserts. The rich understand that dynamic, and are buying these homes faster than usual, in his estimation.
He’s witnessed multi-million-dollar deals where the client had an entire investment/risk management team involved.
“There were bankers, lawyers, planners, and more,” says DeLuca. ”It was part of the client’s wealth strategy. We couldn’t formalize until everything was checked by the team.”
Luxury real estate has evolved from being a prestigious discretionary lifestyle purchase to a key element of wealth preservation, he’s found. He believes that this select market branch is set to really take flight. It’s a sector that’s traditionally shown remarkable stability, so perhaps it shouldn’t come as a surprise that it’s increasingly active.
“You’d think that with the market rippling, the ultra-rich would be sitting on the sidelines like most others,” reflects DeLuca. “But they aren’t. They’re different. This is bigger than market jitters. We’re standing at the threshold.”
Susan Doran is a Toronto-based freelance writer who has been contributing to REM since its very first issue.