Canada Extends Foreign Home Buyer Ban
The law that forbids non-residents from acquiring homes in most areas has affected the luxury end of urban markets, experts say
The law that forbids non-residents from acquiring homes in most areas has affected the luxury end of urban markets, experts say
Canada’s government has extended through the end of 2026 a controversial ban on foreign home buyers that took effect last January after years of debate.
“For years, foreign money has been coming into Canada to buy up residential real estate, increasing housing affordability concerns in cities across the country, and particularly in major urban centres,” Chrystia Freeland, Canada’s deputy prime minister and minister of finance, said in a news release yesterday. “Foreign ownership has also fuelled worries about Canadians being priced out of housing markets in cities and towns across the country.”
The Prohibition on the Purchase of Residential Property by Non-Canadians Act forbids non-citizens from buying residential property in most urban areas, though it includes a long list of exceptions. Property in many rural and “recreational” regions is exempt; most students, refugees, permanent residents, spouses of Canadian citizens, and some temporary workers in Canada may still buy homes.
While the government says the ban will help ease Canada’s severe housing crunch, critics in the real estate industry counter that the prohibition is misguided―and ineffective.
“The newly announced two-year extension is completely unnecessary, considering the fact there is no analysis, evidence or data from Statistics Canada, CMHC [Canada Mortgage and Housing Corporation] or Finance Canada, to support the government’s intended impact on housing affordability in Canada,” said Janice Myers, CEO of the Canadian Real Estate Association (CREA), in a statement Monday. “If the government decides to move forward with this baseless extension, CREA urges them to consider recommendations including exempting pre-construction financing, defining and exempting recreational property, including CUSMA [Canada-United States-Mexico Agreement] exemptions, and giving provinces input to tailor to their housing market requirements,” she added.
Don Kottick, the president and CEO of Sotheby’s International Realty Canada, agreed.
“Canada’s housing market has been driven almost entirely by the housing needs and demands of locals, as well as by population gains due to in-migration of Canadians from other cities, and through immigration,” he told Mansion Global in an email. “The extension of the foreign buyers ban will continue to have little or no impact on housing affordability and housing prices. This policy has only confused and frustrated those from other countries with crucial skills, talent and capital that Canada has been striving to attract and retain.”
The ban has also chilled luxury home sales in key markets like Toronto, said Maureen O’Neill, manager of Sotheby’s International Realty Canada in Toronto. “People who want to sell houses for more than C$5 million [US$3.92 million] can no longer rely on the buyers they used to count on globally,” she said. “It’s another extra burden on selling a house.”
That burden may soon get even heavier; Toronto’s mayor last week endorsed a 10% tax on foreign home buyers in that city, Canada’s largest. The province of Ontario already imposes its own 25% “non-resident speculation tax” on foreign buyers.
Though Canadian data on non-resident buyers is limited, the CBC last year reported that in British Columbia―one of the nation’s hottest housing markets―only about 1.1% of transactions in 2021 involved a foreign buyer, a drop of 3% in 2017. At the time, Ontario’s government told the CBC it had seen “a downward trend” in foreigners buying property since it began taxing non-resident purchases in 2017.
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This peninsular region has beaches, mountains and luxury homes at much lower prices than in the popular Cyclades islands
Three peninsulas make up Halkidiki, an 1,130-square-mile area in Greece’s northern Macedonia region. Like a trident, Athos, Sithonia and Kassandra stretch into the Aegean sea.
Of the three, Kassandra “is the most developed part of Halkidiki,” according to Theodor Nikolaou, an agent with Engel & Völkers Greece in Thérmi. “Activity started in the 1970s and ’80s, and just continued, especially in coastal villages.”
While lower-profile and less touristed than Greek islands like Santorini or Mykonos, Kassandra still boasts sought-after restaurants, nightclubs and shops, said Ioanna Paloka, an agent with Savills Greece in Thessaloniki. “People prefer to buy here because of the amenities, the beautiful beaches, and the mixture of commercial and residential development,” she said. Beaches including Polychrono Beach, Hanioti Beach and Pefkochori Beach boast clear waters, soft sand and postcard-perfect coastal scenery.
Boundaries
Kassandra is the westernmost of Halkidiki’s peninsulas, and the most populated. At about 128 square miles, Kassandra descends from Cassandreia, its northernmost city, to the Aegean Sea. Kassandra is also the nearest peninsula to Thessaloniki, Greece’s second-largest city, and its international airport. “It’s the most accessible part of Halkidiki,” Paloka said.
Seaside locations are most coveted for luxury property, according to Nikolaou. They include the village of Sani, on the west side of Kassandra; Pefkochori, on the peninsula’s east side; and the area around Glarokavos Harbour, just south of Pefkochori. “The combination of sun, the blue of the sea, and the green of pine draws people from around the world,” he said.
Kassandra’s most exclusive locations are Sani, the east-peninsula village of Paliouri, Possidi in the southwest, and Pefkohori, Pakola said.
Thessaloniki is about 60 miles northwest of central Kassandra. Thessaloniki Airport Makedonia, the regional international airport, is a few miles further west. Athens is about 350 miles south.
Price Range
Beachfront properties in Kassandra command premium prices, Paloka said. “Most people at the high end prefer to buy beachfront.” Prices range from €3,000 (US$3,243) to €6,000 per square meter, she said. “For €6,000 per square meter, you’re buying about 20,000 square meters of land with a 1,000-square-meter house, a swimming pool, very modern, in a new development by the sea and surrounded by forests.”
For €5 million in Sani, Savills has listed a 350-square-meter home with six bedrooms and three bathrooms on about 17,000 square meters of land with sea views. In a new development in the village of Siviri, Savills is offering 350-square-meter beach-adjacent homes with seven bedroom suites, private pools, and garages for €2.05 million. Siviri, on Kassandra’s west side, is popular with tourists for its clusters of bars and cafes.
Prices across Kassandra “depend on the distance from the sea,” said Nikolaou of Engel & Volkers Greece. “The closer you are, and the more private the property, the higher the price.” While prices average €2,500 to €4,000 per square meter across Kassandra, they can soar to €8,000 to €10,000 “for the best beachfront luxury property,” he said.
In Pallini, on Kassandra’s east coast, Engel & Volkers is offering an oceanfront hilltop estate on more than 4,000 square meters of land, with nine bedroom suites and amenities including a wine cellar and full bar. Built in 1991, the property is listed for €4,500,000.
The most expensive Kassandra listing in October was a 10-bedroom, 1000-square-meter Sani villa with sea views and a pool for €17,000,000, offered by the Hellenic Property agency.
Housing Stock
In the coastal parts of Kassandra undergoing rapid development, architecture is almost uniformly modern. “There are three types of homes here. Apartments and villas, which aren’t as hot. Multi-home complexes with sea views, which are better. And private luxury beachfront properties, which are at the top.”
Older and even “ancient” properties are common in Kassandra’s mountainous inland regions, according to Nikolaou. “These traditional stone houses in some of the old villages can qualify as luxury homes once they’re renovated, but many require extensive work,” he said. The village of Agia Paraskevi, in south-central Kassandra, has also become a popular tourist destination for its thermal spas and ancient churches.
The higher end of the market consists almost exclusively of detached, modern homes, said Paloka. “Condominiums make up the lower end of the market here,” she said. “And there are almost no historical buildings in the most sought-after coastal areas.”
Luxury Amenities
Greek and international buyers are discovering Kassandra as an alternative to tourist hubs like Mykonos and Santorini. “The fact that Kassandra is not the islands is an amenity in itself,” Paloka said. “It’s very private, relaxed and peaceful, without that madness. Most of the infrastructure here only appeared over the last 10 years.” For golf and tennis, most locals frequent the seaside Sani Resort, which operates private athletic clubs along with its five high-end hotels. Most complexes also have private pools, according to Nikolaou of Engel & Volkers.
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As Kassandra’s profile has risen, its restaurant scene has flourished, with high-end eateries including Metoxi, in a temple-like stone building with sunset views; “creative Greek” spot Giria Elia in Pefkohori’s Hotel Anna Maria; and Kriopigi’s Fiki Fiki, the first Asian-Peruvian fusion restaurant in Halkidiki. Several private medical clinics operate on the peninsula, including the 24-hour Kassandria’s Health Center and Primary Medical Care of Pefkochori.
What Makes It Unique
“Kassandra is a picturesque environment, surrounded by forest, with clean, beautiful, crystal-clear seas,” said Paloka. “The proximity to Thessaloniki also makes it unique. You’re just an hour from the city centre, but you can enjoy all Kassandra has to offer.”
Kassandra’s annual Sani Festival brings A-list musical talent to the peninsula every year; the 2024 edition saw stars including Placido Domingo, Madeleine Peyroux, Tom Jones, and Emeli Sande on the roster.
Who Lives There
Nearly 40% of buyers in Kassandra are “from central Europe, especially German-speaking countries,” Nikolaou said. “They see the Mediterranean, and this part of Greece, as the Florida of Europe. They want a home in the region to use in retirement.” Another 25% of buyers come from the Balkans, including Bulgaria and Romania, “and other countries without direct access to the Mediterranean Sea. This is the first possible access for them,” he said. An additional 15% of buyers hail from Israel and the Middle East. “Thessaloniki once had a significant Jewish population, and Israelis love it. They want to invest here,” Nikolaou said. Just a handful of buyers come from North America, he added.
Kassandra’s largest, most extravagant villas belong to Greeks, according to Paloka of Savills. But those owners are starting to take their profits. “Those properties had been second homes, and the Greek owners are now selling to mostly European buyers,” she said.
Greece’s golden visa program, which grants a five-year residency permit in exchange for a minimum real-estate purchase, has attracted “a huge number of foreigners, but to less expensive properties,” Paloka said. In October, however, the Greek government raised the minimum investment for a golden visa to €800,000 from €250,000 in sought-after destinations including Halkidiki, the region where Kassandra is located.
Notable Residents
Swiss-based Greek billionaire Aristotеlis Mistakidis “has bought a lot of property in Halkidiki, including a villa in Glarokavos,” Nikolaou said. Brad Pitt and Angelina Jolie vacationed in Kassandra when they were an item, and John Travolta and Robert De Niro “spend summers in Kassandra with their families,” Nikolaou said.
Outlook
“Consistency” is the hallmark of the market in Kassandra, said Paloka of Savills.
“Prices may have gone up on lower-end properties, but prime estates have stayed the same or maybe dropped just a bit. What’s key is that it’s more affordable than the islands, and a better value for your money.” Kassandra’s rental market is also “extremely strong, year-round,” meaning owners can generate revenue from their properties, she said. “Even at Christmas, people love coming here. The islands are great, but you can’t get flights there all year―you have to take a ferry off-season.”
Nikolaou, however, said that “the demand for second homes means prices will continue to increase.” He also noted that property prices per square meter “are much more of a value for the money, especially for beachfront properties.”
Investors “are now looking to Kassandra and Halkidiki to develop new tourist areas,” Nikolaou said. “They don’t want to go to the islands. If you count the kilometres of seashore here, it’s like you have 100 islands. And it’s sunny the whole year.”