Calgary, the largest city in the province of Alberta, Canada, has always been an attractive destination for real estate investors.
With a strong economy, a thriving job market, and a diverse range of investment opportunities, Calgary continues to be a hot spot for those looking to invest in real estate. As we enter the year 2023, there are several key factors that real estate investors should keep in mind when considering Calgary as their investment destination. In this article, we will discuss the top five things that real estate investors should know in Calgary for the year 2023.
- Diversification in Property Types: Calgary offers a wide range of property types, including residential, commercial, industrial, and retail. In 2023, real estate investors should consider diversifying their portfolios by exploring different property types. While the residential market remains strong, there are emerging opportunities in the commercial and industrial sectors due to the city’s economic growth.
- Focus on Transit-Oriented Development: As Calgary continues to grow, transit-oriented development (TOD) is becoming increasingly important. The city’s expanding public transportation network, including the C-Train system and bus routes, presents significant opportunities for real estate investors. Properties located near transit hubs and planned transit expansions are likely to experience higher demand and appreciation. Investors should closely monitor the city’s transit plans along the new green-line.
- Sustainable and Green Initiatives: In recent years, Calgary has placed a strong emphasis on sustainable and green initiatives. As environmental consciousness continues to grow, real estate investors should consider properties that align with these trends. Energy-efficient buildings, LEED certifications, and sustainable features can enhance the value of a property and attract environmentally conscious tenants. Many renovations are taking place in the downtown core on the c-class buildings to bring them up to these standards and reduce op-costs.
- Calgary’s Economic Diversification: Calgary has traditionally been known for its oil and gas industry. However, in recent years, the city has made significant strides in diversifying its economy. The technology, renewable energy, and aerospace sectors are experiencing rapid growth, bringing new investment opportunities. Real estate investors should consider properties located in areas that align with Calgary’s diversification efforts. Researching and understanding the key industries driving the city’s economy can help investors identify promising investment prospects.
- Rental Market Opportunities: Calgary’s rental market has experienced fluctuations in recent years, influenced by factors such as the oil industry downturn and the COVID-19 pandemic. However, the city’s rental market is now on FIRE in 2023, driven by population growth and increased job opportunities. Real estate investors should carefully analyze rental market trends, vacancy rates (currently near ZERO), and rental demand when considering investment properties.
Calgary offers a plethora of opportunities for real estate investors in 2023. By diversifying property types, focusing on transit-oriented development, embracing sustainable initiatives, considering Calgary’s economic diversification, and analyzing the rental market, investors can position themselves for success. As with any investment, thorough research, staying informed about local market conditions, and working with experienced professionals will be key to making informed decisions. Calgary’s real estate market is poised for growth, and by keeping these top five factors in mind, investors can navigate the market with confidence and capitalize on the city’s potential.