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Calgary Real Estate - Top Real Estate Investment

Posted by Mark Sadiua on Monday, November 12th, 2012 at 10:14am.

Calgary top real estate investment market in Canada

Edmonton ranked as second

By Mario Toneguzzi, Calgary Herald

CALGARY — Calgary has been ranked as the top real estate investment market in  the country followed by Edmonton by the Real Estate Investment Network Ltd.

In its Top Alberta Investment Towns report, REIN said that Alberta’s economy  has come out on top after a few years of economic turbulence.

The report identifies towns and regions poised to outperform other regions of  the province over the next three to five years.

And none is better than Calgary.

“After a couple of roller-coaster years, Calgary is back on a roll. The  return of jobs to the city, as well as greatly reduced office vacancy rates show  us that the city’s short slump has come to an end,” said the report. “Recording  a GDP growth of three per cent in 2011, and one of the lowest unemployment rates  in the country, it’s no wonder Calgary is sitting as one of the top places in  North America for property investors. When you combine the economic  fundamentals, the population growth, and a burgeoning provincial economy, it is  easy to see why so many businesses and people have come to call the city  home.

“The market is hot. With the pressure on the resale housing market, there is  similar pressure on the rental market. Inventory has dropped for rental  accommodations while monthly rents have increased. Real estate investors and  real estate agents are reporting that rental listings are being pounced on.  Savvy investors purchasing units and advertising them for rent upon close are  receiving calls from anxious tenants wanting to see the unit before the investor  has possession and/or has done any improvements to the property. Rental sites  are reporting difficulty in compiling statistics become some communities have  nothing for rent.”

REIN said housing affordability will begin to be an issue in Calgary, with  rents increasing and a high average sale price. But when you look at that price  versus average income it shows that other cities in Canada have a much larger  problem on their hands.

“Calgary has the long-term economics to support long-term market strength  while other cities do not,” said REIN.

The Top Alberta Investment Towns ranked in order are: Calgary, Edmonton,  Airdrie, Red Deer, St. Albert, Fort McMurray, Lethbridge, Grande Prairie,  Okotoks, Leduc, Sylvan Lake and Lacombe.

The report said Airdrie has been one of the fastest growing communities in  the province.

“Its proximity to the economic engine of Calgary and the growth of the  surrounding economy will push the physical and economic growth limits of the  city in the next decade,” said REIN.

“With increasingly easy access to many areas of Calgary via the ring road as  well as the growth of job centres in and around the city, Airdrie property  owners should continue to feel upward pressure on both rents as well as home  prices. As affordable housing becomes a growing problem in Calgary, Airdrie will  benefit from lower average house prices. As the office centre of the west,  Calgary may offer employment opportunities that Airdrie does not, but much of  the labour force will turn to Airdrie as a place to call home.”

REIN’s top Canadian investment cities ranked in order are: Calgary, Edmonton,  Hamilton, Surrey, Maple Ridge and Pitt Meadows, Airdrie, Kitchener and  Cambridge, Red Deer, St. Albert, Waterloo, Winnipeg, Saskatoon, and Halifax.

According to a research note by Scotia Economics, Alberta remains a key  economic engine for Canada, with the highest provincial real GDP growth rate  forecast for 2012 and 2013 at 3.4 per cent and 3.0 per cent respectively.

“The economy is growing strongly with contributions from consumer spending,  business investment, particularly in the oilsands, and exports, which is  encouraging given the strong Canadian dollar and soft global demand,” it said. “Provincial government spending also will continue to support growth, albeit at  a slower pace than over the decade prior to the recession.”

In the second quarter of 2012, Alberta had a year-over-year population growth  rate of 2.5 per cnet, the highest in the country.

“At this juncture, the federal government’s recent tightening of mortgage and  home equity financing standards appears to have had a limited impact on  Alberta’s housing market,” said Scotia Economics. “It continues to be supported  by strong employment growth, significant wage gains and ongoing resource  development.”

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Re/Max, CREB Certified Condominium Specialist