Emerging Trends Canada: Calgary, Edmonton Are Top Markets to Watch

Canada’s economy continues to deliver stable, modest growth, creating an ideal low-risk environment for real estate developers and investors.

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ULI members tour Vancouver at the 2014 Spring Meeting.

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Canada’s economy continues to deliver stable, modest growth, creating an ideal low-risk environment for real estate developers and investors. Canada as a whole—and Ontario in particular—are likely to get a boost from a stronger U.S. economy, which appears finally to be reaching a point of sustainable economic growth. However, there may be headwinds, with Europe’s continuing economic struggles and with concerns about China’s economy.

Download: Emerging Trends: North America | Emerging Trends: Asia

Western Canada continues to be the country’s economic engine. Alberta markets are strong, propelled by Calgary’s office boom and significant development, including offices, condominiums, and museums. Vancouver, on the cusp of an economic resurgence, has several office developments coming onto the market, while foreign investment continues to pour into its robust housing sector. Saskatoon, the largest city in the prairie province of Saskatchewan, is enjoying record housing sales and long-awaited growth in industrial space.

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In the east, Toronto’s condo market remains strong and stable as people continue to flock downtown and retailers follow. In Montreal, the office market is expected to coast along while condo development slows as the market continues to absorb the new inventory—yet retail is expected to undergo significant development and change. The office market in Halifax—the largest city in the maritime province of Nova Scotia—is looking bright, offsetting reduced confidence in the housing market.

Looking ahead, western Canada is considered most likely to be the best place to be, buoyed by strong performance in Calgary and Edmonton. Commercial and office space on the edges of the urban core looks promising, as long as it is at the right price. Speculative industrial space appears strong in Alberta and the western part of Greater Toronto. Those focused on Toronto would do well to explore retail opportunities as well as multifamily residential along transit corridors. And, in a country with an aging population, seniors’ housing—if well managed and in a good location—offers attractive potential.—Excerpted from Emerging Trends in Real Estate® 2015.

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Trish Riggs is a public relations consultant and freelancer with Keadle-Riggs Communications. Riggs was a senior vice president with the Urban Land Institute from 2005 to 2019.
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