Calgary Real Estate: 2025 Spotlight on Luxury

While concerns regarding the impact of future US tariffs on the oil and gas industry and the upcoming federal election exist, there appears to be nominal pullback in the luxury sector of the Calgary real estate market with sales over $1.5 million up more than 11 per cent over last year’s levels. Sixty-eight properties changed hands in the first two months of 2025, up from 61 per cent during the same period in 2024.

The city has been a choice destination for buyers from Ontario and British Columbia throughout the pandemic and the trend continues, with interprovincial migration in the Calgary CMA up by close to 21,000 residents between July 1, 2023 and July 1, 2024–the highest net gain in over 20 years. The Calgary CMA also reported the fastest population growth rate in the of all CMA’s over the past 20 years at 5.8 per cent, according to Statistics Canada’s Population Estimates: Subprovincial areas, 2024.

Although migration has been a contributing factor to the rise of Calgary real estate in recent years, the city’s thriving economy has played a substantial role in the uptick in demand for luxury product. A strong oil and gas industry, an emerging tech sector, and the city’s efforts to further diversify the economy and bring new business to the area are starting to pay off.

Luxury represented approximately 2.2 per cent of overall Calgary real estate market share this year, up from 1.6 per cent reported during the same period one year ago. The lion’s share of sales at the top end were detached homes at almost 93 per cent, with condominium and semi-detached properties making up the remaining seven per cent. Most of the sales in the market so far this year have been under the $2-million price point.

While traditional luxury enclaves including Upper Mount Royal, Britannia and Elbow Park remain highly sought after, younger move-up buyers are looking to inner city communities such as Altadore and Hillhurst that offer new infill product on generous lot sizes ranging from 60 ft. to 80 ft. frontages. Equity gains realized in recent years are driving some of the activity in the market to date, while the federal government’s recent decision to increase the cap on mortgage insurance to $1.5 million is also making it easier for buyers to enter the market. Inventory levels remain healthy at luxury price points, with more than 200 homes listed over $1.5 million, including 35 uber-luxe properties over $3 million.

Downsizing is also occurring, given that 14 per cent of the local population is now aged 65 and over. As such, many empty nesters and retirees have less use for their existing, oversized homes. Some are moving to condominium apartments while others are downsizing their homes in Calgary and buying vacation properties in BC, Arizona or California, thanks to the proximity to an international airport.

Some multi-generational trends are occurring at the top end of the market this year. Acreage properties housing a primary residence and a secondary home for occupation by adult children or older parents are drawing interest. The trend is also occurring in the city where carriage house suites or apartments over garages are added to existing homes in established neighbourhoods.

Most of the moves in the market today are needs-based and buyers at the top end don’t always incorporate market timing into their decision-making process. Calgary is home to the highest number of millionaires per capita in Canada, so luxury inventory levels tend to fluctuate as real estate trades are frequent and fluid.

Given current market realities, including the threat of tariffs, stock market volatility and the usual federal election jitters, the future remains uncertain right now. However, Calgary has experienced its fair share of adversity and challenging times and emerged stronger.  As a result, the overall and luxury markets are expected to be resilient, with home-buying activity expected to continue at a healthy pace for the remainder of the year.

Have questions, or are you ready to engage in the market? Connect with a RE/MAX agent today.