The value of real estate in Montreal increased by 32.4 percent across the island, according to the 2023-25 Montreal Municipal Assessment Group. The average value of a single-family home now stands at $840,000, up from $600,900 during the 2020-22 period.

In Westmount, Outremont, Hampstead, Mount Royal, and Ville-Marie, the value of these homes is estimated at more than $1.5 million on average, with the highest home's value reaching $32.6 million.

Meanwhile, the average cost of a condominium is now $492,400 on the island, up from $365,000 just three years ago - indicating a huge increase of 35 percent.

Among neighborhoods in Montreal, property values rose the most in Lachine (42.6 percent), Pierrefonds-Roxboro (40.8 percent), and Saint-Laurent (39 percent).

These increases were influenced by significant industrial areas in Lachine and Saint-Laurent, as well as large increases in residential property values in the West Island, according to the report.

Dominic Olivier, Chairman of the Montreal Executive Committee, also said: "The strong performance of the real estate market shows Montreal's enviable economic vitality. But the increase in housing prices also brings a number of concerns for the most vulnerable residents."

Shopping centers were the only category to receive a lower assessment than before (-2.1 percent), as the commercial sector took a major hit from the COVID-19 pandemic.

While property values have increased significantly in the past three years, the city reassured Montreal residents that tax increases would not be severe. Olivier said: "Seeing a significant increase in property values of about 32 percent does not mean that property taxes will increase by 32 percent." He added, "As with every new property tax roll, the city will adjust its tax rate downward so that Montreal residents' tax bills are closer to those prevailing in previous years."

Benny Massella, President of the Suburban Municipalities Union (ASM) and Mayor of Montreal West, said he is concerned that his town may have to pay a larger share of the bloc's bill compared to other cities and neighborhoods on the island.

With property values increasing by 41.1 percent in West Montreal, nearly 10 percent higher than the island average, Massella said he believes shared costs should not be based on this single factor.

Meanwhile, Olivier said property owners in Montreal will not face "additional financial pressures," adding that city revenues will remain the same. More details on the property tax will be revealed during the budget announcement later this year.