Luxury homes: Edmonton’s market is emerging

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Multi-million dollar residential properties are no longer a rare sighting in the Edmonton marketplace, and perhaps they never were as scarce as once thought.

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“When you’re looking at (multi-million dollar) homes being built, a lot of people are building these luxury homes and they’re never hitting the MLS (multiple listing service),” said Edmonton-based Ryan Debler, sales associate at Sotheby’s International Realty Canada. “We have a few that we’re representing currently where they built them five to 10 years ago and they’re into them for $7 million to $12 million and no one had seen them on the MLS; they’ve hired the builder and did it privately.”

Home transactions $1 million or higher in greater Edmonton, said Debler, jumped from 155 in 2020 to 251 in 2021.

“It’s quite funny that when you look at a map of Edmonton, the money just flows down the river,” said Debler, referring to where these homes are situated. “Really, it’s the homes that are following that river line all the way down to southwest Edmonton; those seem to be the ones that transact quite a bit higher.”

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Those areas include spots near downtown, and then follow the river encompassing neighbourhoods including Old Glenora, the Country Club area, Donsdale, Cameron Heights and Windermere.

Building Big

Sotheby’s Edmonton has one home currently listed at $6.25 million, and another at $5.3 million, that Debler calls “absolutely massive” coming in at more than 9,000 square feet.

A home worth $1 million in today’s local market will likely build you a home around 3,500 square feet, he said. “But then as you climb over $1.5 million, they get larger but they also get upgraded. They might not be 10,000 square feet, but they have Sub-Zero appliances, $40,000 light fixtures. The homes just get more and more detailed or the location gets better.”

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Urban Edge Homes, which has worked with Sotheby’s on some of its homes, said requests will vary by customer as to what goes into these builds.

“The pandemic has definitely fuelled a demand for customized home offices, study spaces and recreational spaces like media rooms, playrooms, gyms, outdoor pools and hot tubs,” said Ravi Deol, Urban Edge’s managing partner. “Other trends we are seeing are rooftop patios, dog washes and pet stations.”

Deol has also seen requests for aquariums and elaborate wine cellars.

“We have seen a range of clients at or above the $1 million price point,” said Deol. “The idea of a flexible work arrangement has put luxury, comfort and an affluent lifestyle at the forefront for many professionals. They want their hard work to be a reflected in their homes.”

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Edmonton, adds Debler, tends to be quieter and has been less of a flashy market when it comes to pricey real estate and homes. People doing well in PPE, medical supplies, crypto currencies and new business owners are just some of the buyers or builders of higher-end homes, said Debler, and are spending a lot of money in the marketplace.

Some Differences

If a luxury home is in the cards, the build process will likely differ from that of its lower-priced counterparts.

Instead of just choosing a builder, a show home model and a community, Sotheby’s Debler suggests hiring a realtor to act as an advisor to help source the land and provide expertise on the investment.

A realtor, he said, could have connections with custom builders and be able to get you a lot in an area you might want but not be able to otherwise obtain.

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Urban Edge said as a custom builder it sits down with a client and lets them know which neighbourhood will work for them, what the architectural controls are, and helps to narrow it down to the right site. It also connects the buyer with the appropriate interior designer to design a home tailored to their needs and to give it that one-of-a-kind feel.

A good starting point, said Deol, is having an idea of the square footage desired as well as a preferred neighbourhood in mind. Buyers should also know, adds Deol, that even with a high-end budget they still need to realistic, disciplined and stick to their budget.

Debler, meanwhile, said even though the build will be custom, you need to keep in mind that if the home is too unique — when it comes time to sell — it will likely sell for less if it’s too custom or too extravagant.

$1 Million-plus Listings

Sotheby’s Edmonton has some 18 properties currently for sale in greater Edmonton, valued at $1 million or higher, and lists 14 at $1 million or higher that recently sold.

Urban Edge is building houses ranging from $1.2 million to more than $2 million. Currently, it has 10 builds under contract in that price range. It also has a spec home planned for Jagare Ridge, at $1.3 million.