The Kelowna Waterfront is Getting a New Look With Proposed Development

Kelowna’s waterfront may see some big changes in the years to come. The City of Kelowna has purchased several prime pieces of downtown land for $27.8 million to help revive a long-stalled hotel and marina project. The move is sparking new conversations about what this development could mean for buyers, sellers, and the overall Kelowna waterfront real estate market.

What This Means for the Kelowna Waterfront Real Estate Market

The city’s purchase includes land near Kerry Park and the Kelowna Marina, right at the heart of the downtown waterfront. This area has been waiting years for renewal after earlier hotel and convention plans failed to move forward. By stepping in, the city hopes to attract new global developers through Avington Financial, a firm that connects municipalities with major investors in hospitality and tourism.

For local homeowners, this could bring lasting benefits. A completed luxury hotel and marina would add value and visibility to nearby residential areas. It could also draw more visitors and professionals to Kelowna’s core, supporting businesses and increasing interest in downtown condos and townhomes. Buyers looking at Kelowna waterfront properties may see a stronger long-term return as development drives up the area’s appeal and scarcity of available land.

Sellers also stand to benefit. Renewed attention on the waterfront can raise property values, particularly for homes with lake views or easy access to downtown amenities. The excitement of a new “landmark” development often brings up surrounding real estate activity, creating ideal timing for owners thinking about listing.

Of course, not everyone is on board. Some residents worry about the city acting as a developer, while others fear overbuilding. Still, Kelowna’s strong track record of urban planning and tourism growth suggests that careful design could help balance progress with livability.

If the vision takes shape, the Kelowna waterfront will likely see renewed public spaces, new investment, and rising property demand. That makes this development one of the most closely watched stories as we head into 2026.

For more information about what’s to come, contact me today! I’d be happy to help you find the perfect real estate opportunity in Kelowna or the surrounding area. 

FAQ

How could this project affect Kelowna waterfront property values?

Major developments often raise nearby values by improving local amenities and attracting new buyers and investors.

Will this make it harder to buy on the Kelowna waterfront?

Possibly. As interest grows, limited supply could push prices higher, especially for properties close to the new hotel site.

When will construction begin?

No date has been confirmed yet, but the city’s new ownership aims to fast-track discussions with international developers in 2026.