Slow Motion Stampede To Rope More Sophisticated Investors In Alberta
While billions of dollars in new real estate projects are slated for Alberta’s leading cities of Calgary and Edmonton, some seem to be slowing down rather than being fast tracked to completion. So is this a sign of a slowdown, and why is it likely to attract even more sophisticated and savvy real estate investors to Alberta?
Edmonton’s city council tapped the brakes on the city’s Galleria project. More recently, Calgary’s 3 Eau Claire twin tower development announced it is looking for a new partner to help complete the high rise project. Now Alberta Development Partners revealed a new snag in the Calgary Stampede Trail development. What is causing all of these issues, and what does it signal ahead for Alberta real estate?
Just as the downtown Edmonton arena had its own controversies and delays, these projects are not being scraped. It’s just a matter of when they will be completed, not if. Some may find these hurdles surprising given the robustness of Alberta’s economy and property markets. However, looking at the details and real stories, it continues to be a case of municipalities and organizers simply being more cautious and careful to ensure sound financials and preserving long term solvency and success. This is a good thing. Rather than rushing ahead, bullish and over confident, more care than ever is being taken to preserve stability and focus on sustainable growth.
This is likely to lead global and sophisticated real estate investors to put their capital in Alberta. Slow growth may not be sexy to those looking to get rich quick, but it is perhaps more attractive to the most experienced investors.
The latest Calgary housing prices and sales statistics show the market is still heading up, but slowly. This debunks previous fears of Canadian markets being too hot. Slow growth means steady and sustainable growth, as well as longevity. Safety and passive wealth building is what sophisticated investors prefer.
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