Montreal, November 2 2025 – It’s out. The Montreal 2025 Municipal election resulted in a victory for Ensemble Montréal under new leader Soraya Martinez Ferrada.

The party secured a majority of seats on the city council and will set the housing and land-use agenda for the next term. As a result, the next four years will bring notable adjustments to housing and development policy.

Real estate stakeholders, including homeowners and buyers, should pay attention. The platform signals upcoming changes in affordable-housing rules, permitting, and the use of city-owned land.

2025 Montreal Municipal Elections and how it will impact the city’s real estate landscape

Soraya Martinez Ferrada led Ensemble Montréal to a decisive win in the 2025 municipal election. The previous administration under Projet Montréal lost its majority, marking a shift in how the city approaches growth.

For years, development policy leaned on regulation; this new administration focuses instead on collaboration and acceleration.

• For developers: A potential easing of constraints, with inclusionary housing rules replaced by tailored agreements that could revive stalled projects.
• For investors: Greater predictability in timelines as permitting processed are promised to be more streamlined.
• For homeowners, sellers and buyers: Renewed public investment in infrastructure and flood prevention could enhance long-term property resilience and neighborhood value.

Overall, the platforms presents this mandate as less about rewriting Montreal’s map than about unblocking it, all to set the stage for a more fluid real estate cycle over the next four years.

Ensemble Montréal’s Key Promises Affecting the Real Estate Market

Housing development and the End of the 20-20-20 By-law

Ensemble has pledged to abolish the current Diverse Metropolis By-Law, often called the 20-20-20 rule,  and instead favour financial incentives and partnerships with private developers and non-profit organisations.

Permit Acceleration and City Land Projects

The new party intends to speed up approval processes and act directly as a developer on city-owned land to deliver affordable and off market housing units.

Homelessness and Transitional Housing

A commitment to for a Tactical Homelessness Response Team and allocate additional resources to emergency housing means an increased focus on homeless services, real estate assets and transitional housing supplies.

Climate and Flood-risk Investment

Following the major floods of July 2025, climate resilience became a central issue in every municipal platform.  Ensemble Montréal’s  plan mixes prevention, compensation, and infrastructure upgrades. It includes:

• $20 million through the RénoPlex program to help homeowners in flood-prone zones cover remediation and waterproofing costs
• Creation of a $10 million annual Climate Emergency  Reserve Fund to support borough-level adaption projects.
• Financing of the Langelier Collector Project, a major drainage upgrade meant to reduce overflow risk in Montreal East.

Short-term Impact on Buyers, Sellers and Developers

In the short term, the clearest effects will be on project feasibility, timelines, and market activity in several neighborhoods. Developers could benefit from lighter regulations and faster permitting, helping bring delayed projects back to market.

For sellers and homeowners, an increase in city-led or privately backed construction may begin to rebalance supply in select boroughs, easing pressure on prices at the upper end of the market. Buyers could benefit from increased inventory to choose from within Montreal’s urban core, as new housing projects are expected to start on city-owned land.

What to Expect in 2026

• The city will announce parcels of land earmarked for redevelopment.

• Updated inclusionary zoning policy with clear thresholds and incentives.

• Officials will publish new permitting-time metrics to measure progress.

• Infrastructure investment in flood- or climate-vulnerable zones may prompt new-entry investment or caution in others.

• Transitional-housing projects in older large-units stock may shift some multi-unit-housing supply dynamics.

Expert Insight: Rola Hamdan’s Note

The end of the 20-20-20 rule and the acceleration of permits should give new momentum to pending projects. This will be particularly noticeable in already highly sought-after neighborhoods, such as Le Sud-Ouest and Rosemont. The development of vacant municipal land will open up new development opportunities in less saturated areas.

These measures herald a more fluid market for owners and buyers, but also a more segmented one. Some areas will see an increase in supply, while others will remain under pressure.

My team and I are closely monitoring the changes brought about by Ensemble Montréal. These changes will have a direct impact on the real estate market, particularly in the central neighborhoods of Outremont, Westmount, Ville-Marie, and Sud-Ouest.

We recommend that buyers and sellers start thinking now about adjusting their strategy in light of the upcoming changes.

The first 100 days of transition will be crucial. If you’re not sure how to prepare, request a free consultation with Rola Hamdan.

Don’t wait to be caught off guard. Be ready.