Calgary and Edmonton have been going head to head for the position of best real estate market in Canada for a number of years. Calgary has consistently generated consistent commercial real estate returns, even as property prices have risen dramatically and luxury home prices have shattered record after record.
On the other hand, Edmonton has offered better value for years. It was expected that last year Edmonton would officially seize the crown. Most data published showed that both Alberta cities are still neck and neck. However, some expect the recent oil price plunge to decidedly tip conditions in Edmonton’s favor.
Many reports proclaim Calgary’s reliance on energy. According to Statistics Canada and a senior economist at the Bank of Montreal pointed out the decline in building permit value and a dramatic 42 per cent rise in Calgary’s property inventory shows that recent concerns over oil prices are already taking their toll.
It can sometimes be difficult to peg the real differences between the two markets but Edmonton saw a 40 per cent rise in sales, while Calgary just piled properties onto the market. Double digit single-family home price increases in at least five Edmonton neighborhoods also beat out Calgary’s average of less than 10 per cent. Still the big deciding factor for Canadian real estate investors is going to be sustainability in growth and velocity.
Edmonton also has another advantage, contagious optimism. The current building and development boom in Edmonton has created an environment and vibe that has a lot of unquenchable energy. Right now, it seems no matter which direction oil prices, foreign economies and other Canadian real estate markets head in the months ahead; Edmonton will only continue to grow.
Whether it is individuals looking for a smart investment in a home, companies looking for the right location or Canadian commercial real estate investors seeking attractive and sustainable returns, Edmonton is proving to be a stable and steady choice.