Calgary and Edmonton outpaced Toronto and Vancouver as top real estate markets

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CALGARY — Calgary and Edmonton have displaced Toronto and Vancouver as the  top-ranked cities for overall real estate prospects, according to the Emerging  Trends in Real Estate 2013 report released Tuesday.

The report, by PwC and the Urban Land Institute, said the Canadian real  estate market is expected to remain steady with “modestly good” investment and  development prospects across most property sectors for 2013, reflecting  expectations of solid supply and demand.

Calgary was the top-ranked city in the country followed by Edmonton, Toronto,  Vancouver and Ottawa.

In this year’s survey, Calgary ranked first in both investment and  development prospects and second in homebuilding prospects.

“Growth characterizes Calgary’s future; it displaces Toronto as the top  ranked city for 2013,” said the report. “This has made it challenging to acquire  high quality real estate in Calgary, absorption of prime properties has reached  record levels, and rents are being pushed due to limited supply.

“This trend will continue in 2013, especially in office and industrial  employment space. Construction will increase in the housing and non-residential  arenas, but nowhere near pre-crisis levels.”

According to survey participants, Canada’s real estate market will follow  along in a seeming state of near-perpetual equilibrium compared with other more  volatile regions studied in the report, including most obviously the United  States.

“The results of this year’s Emerging Trends report reflects the fact that the  Canadian real estate community understands real estate fundamentals and knows  how to react to fluctuations in monetary policy and capital markets. Canada’s  real estate industry continues to operate well despite uncertainties in domestic  and global economies,” said Lori-Ann Beausoleil, PwC Canada’s Real Estate  Leader.

The report said Calgary’s expanding economy is requiring a larger and more  highly-skilled workforce. Employment forecasts indicate growth of 2.8 per cent  next year and 2.9 per cent in 2014.

“This growth, driven mostly by the oil and gas industry, has made it  challenging to acquire high-quality real estate in this market,” said the  report.

“Absorption of prime properties has reached record levels and rents are  continuing to be pushed due to limited supply.”

The report said potential approvals of controversial pipeline projects to the  United States and into British Columbia would boost real estate construction  projects further in Calgary.

The strength of Calgary’s real estate market is evident in both the  residential and non-residential sectors.

According to the Calgary Real Estate Board, year-to-date as of Monday, total  MLS sales in the city of 18,905 are up 15.56 per cent from the same period last  year.

Canada Mortgage and Housing Corp. is forecasting total housing starts in the  Calgary census metropolitan area to finish at 12,400 units this year, an  increase of more than 33 per cent from 2011 and the highest level since  2007.

RealNet Canada recently said Calgary has experienced the second best ever  year for commercial real estate transactions for the first nine months of the  year with $3.394 billion in sales so far this year.

And a recent report by Jones Lang LaSalle suggested a downtown office  development boom in Calgary could be on the horizon.




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We incorporated The Mortgage Centre-Sky Financial Corp. in August 1992 in Edmonton Alberta. Furthermore we opened offices in Fort McMurray, Cold Lake, Grande Prairie, Red Deer, Stettler, Saskatoon, Moose Jaw and Prince George BC.

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