How will the REM Impact Property Prices in the Real Estate Market?

The Réseau express métropolitain (REM), a light rail transit system that is currently under construction, is anticipated to have a significant impact on the city of Montreal. This ambitious infrastructure project aims to not only greatly enhance the city’s public transportation network, but also to revolutionize the local real estate market. There are valid reasons for real estate experts to be optimistic about the REM, given that it is the most sizable public transportation project in Quebec in the past 50 years, spanning 67 kilometers with 26 stations throughout the city, and boasting a fully automated and electric network that ensures seamless connectivity to all areas.

With construction of the REM currently underway and the network scheduled to commence operation in the latter half of 2023, some degree of excitement among property buyers in Montreal is apparent. Many buyers are already exploring properties for sale near the planned stations, as the promise of a more mobile lifestyle is quite alluring. With suburban neighborhoods set to be connected to Montreal’s rapid transit system, buyers may be tempted to invest in the hope of reaping substantial rewards down the line.

In this post, we will delve into how the REM is expected to affect property prices in Montreal.

Property prices are likely to increase near REM stations. Although the project has yet to commence operation, property investors have already shown optimism about the project. The main reason behind this optimism is that the project will connect downtown Montreal with more distant suburbs, bringing more communities into direct proximity with the city's bustling life. As a result, there will likely be heightened demand for properties in these areas. Additionally, many real estate experts anticipate that both demand and prices near REM stations will increase, similar to the trend seen with the metro station project. With the advanced transit system and transportation infrastructure promised by the REM, it is plausible that property prices in these areas may reach unprecedented levels.

Areas within a radius of 4 kilometers are likely to experience a positive impact on prices. Large-scale public transportation projects often impact property prices within a 5-kilometer radius. This was evident in the case of the metro station, as a recent study has shown that most property types in the mentioned area benefited from the project. The study also found that the further away a location is from the metro, the less impact it is likely to receive. Similarly, the REM is expected to have a similar impact on property prices, with areas running along the network likely to see exponential growth in demand for real estate for sale.

Areas near a metro station with a connecting REM station are set to gain the most. The same study concluded that the transit project could benefit areas that already have a metro station and are also scheduled to have a connecting REM station. This is expected, as these areas will enjoy enhanced connectivity with the rest of Montreal's metropolitan parts and suburbs and will benefit from easy connectivity and world-class transportation facilities. It is reasonable to assume that property prices will surge considerably in these areas, and those who already own properties there may be thrilled at the prospect of a significant increase in value.

Some areas are already experiencing inventory shortages. Everyone, from developers to homebuyers to speculators, is excited about the prospect of the REM, and the market is already showing signs of increased enthusiasm. In fact, in some areas, the market is already extremely active, with real estate brokers receiving multiple offers. However, sellers are also aware of the mood of the market, and many are waiting and watching rather than rushing to sell their properties right away and potentially missing out on increased prices. Some sellers in the West Island are holding onto their properties until the REM station becomes operational. This approach by sellers could upset the market and have an adverse effect on the supply and demand mechanism. Nonetheless, it is just one of the many potential impacts of the REM project.

In conclusion, the Réseau express métropolitain (REM) is poised to revolutionize the property market in Montreal, with prospective buyers eagerly seeking investment opportunities near the proposed stations. Meanwhile, sellers are remaining guarded in their approach. It would be prudent to conclude that any investment in the vicinity of the REM stations holds promise for future gains.