Real estate values on the island of Montreal soar 32.4% with the filing of the new municipal appraisal list, due to take effect on January 1stah next January.
Posted yesterday at 11am
You have to go back to the 2007 list to see an increase of this magnitude. At that time the jump was 38.6%.
The value of buildings in the residential category increased by 35.5%, that of the non-residential category by 23%. The value of undeveloped land increased by 42.8%.
In detail, homes gained an average of 38.6%, the strongest increase in the residential sector. The change in values of shared ownership (condominiums) is 30.7%.
These results correspond in all points to the simulations of the data company JLR, whose The press reports in an article published on August 11.
In the non-residential sector, there are clear differences between the subcategories. The manufacturer appreciated by 60.5% and benefited from the popularity of e-commerce. Warehouses are multiplying, which is putting pressure on the availability of industrial space and causing rent levels and thus the value of warehouses to explode.
In a press conference on Wednesday, opposition leader Aref Salem expressed concern over a possible flight of SMEs on the island of Montreal due to the explosion in the value of industrial buildings.
At the other end of the spectrum, offices are only growing 6.5% due to the popularity of telecommuting. Shopping centers even lost 2.1% in value. Abandoned during the pandemic, Montreal hotels are also suffering, with fluctuations ranging from 0% to 15% depending on the hotel.
The impact of the new role on property owners’ tax bills will be known when the affected cities present their 2023 budgets later this year.
It should be noted that an increase in the value of a property does not automatically lead to a corresponding increase in the tax base.
On Wednesday, the Plante administration was content to reiterate its pledge not to raise taxes above inflation. However, the consumer price index exceeded 8% in the country last June. Executive Committee President Dominique Ollivier indicated that she would consider spreading the values of the new role over three years to mitigate the impact of the changes. This measure has been used regularly by the Montreal administration since the 2000s.
In general, an owner whose building has a higher than average valuation percentage, all other things being equal, will experience an increase in their tax burden. Conversely, those whose building’s value has risen below average will benefit from a tax cut.
Four highlights of the new role
Lower spreads than in the previous reel
Contrary to the current role, where the east of the island lagged behind, the increases in value in the housing sector are relatively homogeneous between cities and municipalities. These vary between 30 and 50% between the 16 related cities and the 19 boroughs of the City of Montreal, with the notable exception of the Ville-Marie borough, which includes downtown.
The pandemic has made life in the city center difficult. The new role reflects this. Condominiums in Ville-Marie recorded the lowest appreciation in value of the entire residential sector in the metropolitan area of Montreal. The increase in value reached 20.6% compared to an average increase of 30.7% for the split condominium category for the entire island of Montreal.
Popular homes on the West Island
The largest increases in value in the residential sector are in the single-family home category, particularly in the towns and cities of the West Island. A telling example is the neighborhood of Pierrefonds-Roxboro, typically a poor cousin of the West Island. This time the increase reached 40.8%. On the island of Montreal, homes in Sainte-Anne-de-Bellevue (49%), Senneville (48.3%) and Dollard-des-Ormeaux (47%) saw the largest increases.
Hochelaga stands out
In the east of the island of Montréal, the Mercier-Hochelaga-Maisonneuve district stands out with an upward trend of almost 40% in residential values. In particular, condominiums were valued at 38.8%, much more than the average observed in the city of Montreal for this type of housing (30.7%). The neighboring sectors of Rosemont (34.4%), Anjou (33.7%), Montreal East (32.1%) and Saint-Léonard (31.2%) all have lower growth rates than Hochelaga for residential buildings.
What there is to know
The values on the roll give the market value of the property on the key date 1ah July 2021. The difference in values between the new roll and the previous one shows the evolution of the market between 01ah July 2018 and 1ah July 2021. The list includes the 19 boroughs of the city of Montreal as well as the 16 other related cities. The total value of the 502,789 buildings listed in the 2023-2024-2025 metro Montréal lists reached US$526.3 billion, an increase of US$141.8 billion from the previous list.
An increase in municipal tax does not necessarily mean an increase in property tax. To help you see more clearly, check out our article published last month.
- Average value of a family residence in the metro Montreal area
City of Montreal rating service
- Average Value of a Shared Ownership Apartment in the Greater Montreal Area
City of Montreal rating service