Royalmount Phase Two: What Does It Mean for Montreal Real Estate?

When Royalmount first opened its doors, most of the headlines focused on luxury retail, restaurants, entertainment, and whether Montreal really needed another shopping destination. However, the most important chapter of the project may still be ahead of us.

Phase Two of Royalmount is expected to bring residential development to the site, transforming it from a shopping and entertainment destination into a true mixed-use urban district. According to recent reporting, thousands of housing units could eventually be added to the project over the coming years. This marks a significant shift, not only for Royalmount itself, but for the future of Montreal real estate.

Royalmount Is No Longer Just a Mall

From an urban planning perspective, successful cities are increasingly moving away from single-use developments. The traditional model was simple: live in one area, work in another, and shop somewhere else. Modern urban development aims to combine all of these uses into one integrated environment.

That is exactly what Royalmount is becoming. The vision now includes retail, entertainment, office space, hotels, public spaces, and residential housing. The addition of homes transforms the project from a destination into a neighbourhood. This is important because neighbourhoods create long-term value. Shopping centres attract visitors. Neighbourhoods attract residents, employers, investment, and sustained economic activity.

Why Developers Love Transit-Oriented Communities

One of Royalmount's greatest advantages is its location. The project sits at the intersection of Highway 15 and Highway 40, directly connected to the De la Savane Metro station and within close proximity to some of Montreal's largest employment hubs.

Over the next decade, governments and developers are expected to continue concentrating growth around major transportation corridors. The reason is simple: infrastructure already exists. Rather than extending services further into the suburbs, cities increasingly encourage density where transit, roads, utilities, and employment opportunities already exist.

Royalmount checks all those boxes. For buyers and investors, properties located near major transit hubs historically benefit from stronger long-term demand because they appeal to both homeowners and renters.

What Does This Mean for Nearby Property Values?

The answer depends on timing. In the short term, new residential construction creates additional housing supply. More supply means buyers will have more options, particularly in the condo market. Some nearby condominium projects may face increased competition as prospective buyers compare older resale units against brand-new offerings within Royalmount.

However, the longer-term impact could be very different. When a major mixed-use project succeeds, it often elevates the profile of the surrounding area. New restaurants, services, offices, and public spaces tend to attract additional investment. This creates a positive cycle where more residents attract more businesses, which in turn attract more residents.

We've seen similar patterns in areas such as Griffintown, Downtown Laval, and parts of the Quartier des Spectacles. While every project is unique, successful urban districts tend to create value well beyond their immediate boundaries.

A New Housing Supply Is Good News

Montreal continues to face significant housing challenges. Population growth has outpaced housing construction for several years, contributing to low vacancy rates and rising prices.

Whether the units at Royalmount are rental apartments, condominiums, or a mix of both, additional housing supply is generally positive for the metropolitan area. The key question will be affordability.

If the project primarily targets the luxury segment, its direct impact on housing affordability may be limited. If a broader mix of housing types is delivered, the project could play a more meaningful role in addressing housing demand.

What Investors Should Watch

For real estate investors, Royalmount represents more than a single project. It is a signal of where future growth may occur. Montreal's next generation of real estate development will likely be centred around transit-connected, mixed-use environments that combine living, working, shopping, and entertainment.

Investors should pay close attention to:

• Residential pricing within Royalmount • Rental demand once units are delivered • Office occupancy levels within the project

• Future infrastructure improvements in the area

• The effect on nearby neighbourhoods such as Town of Mount Royal, Saint-Laurent, and Côte-des-Neiges

The success or failure of these components will determine whether Royalmount becomes a landmark project or simply another large commercial development.

The Bottom Line Royalmount Phase Two

The retail opening of Royalmount generated headlines, but the residential phase may ultimately be the most important part of the project. Adding housing transforms Royalmount from a shopping destination into a complete urban district. For Montreal real estate, this represents a major shift toward higher-density, transit-oriented development.

For buyers, sellers, and investors, the question is no longer whether Royalmount will attract visitors.

The question is whether it will become one of Montreal's most desirable places to live.

If it does, the impact on surrounding real estate values, rental demand, and future development patterns could be felt for decades.

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