How Long Will Edmonton’s Commercial Real Estate Growth Last?
Edmonton, AB might be hot for real estate investing right now, but how long will the growth last?
In reality, the way that Edmonton has been picking up has marked a coming of age for the city. 2012 returns came in just shy of 20% making Edmonton the second best in the nation. Edmonton has been on the radar for the most investors for a year or two, but growth is just beginning in earnest.
Right now we are experiencing huge migration into AB, especially Edmonton with the complications throughout the rest of the world and Canada. In fact, in Canada that is just starting and looking at cycles and patterns around the globe expect five to seven years of soft times in surrounding provinces, which will fuel investment and property growth in the city.
At the same time there is much more development going on in Edmonton. Some projects are already breaking ground, but some bigger projects are still coming out of planning and won’t be finished for a couple of years, which is when the biggest tangible impact on local real estate values and the economy will be delivered.
Once they are up and Edmonton has graduated as a new world city, vibrant business hub, a hotspot for young families and tech minds is when organic growth will really snowball by itself.
To conclude, we are likely looking at a good five to ten years of growth before peaking. Even from a pessimistic or conservative point of view, anticipate five years.