New Housing Boom To Flood Edmonton With Shoppers
Edmonton is on the verge of a new housing boom, but it’s the flood of new shoppers and cash that might provide a clue as to what Canadian real estate investment sector may be strongest going forward.
Bank of Montreal recently announced that first time Canadian homebuyers are enjoying more money to go home shopping with, at an average of $316,000. However, it is Edmonton’s condo market which seems to be experiencing an even larger boom right now.
Recent media attention has been focused on the wave of new condo projects being planned and built in Edmonton, and people are moving in droves.
Some 5,000 new units are expected to be added to the Edmonton market in the near future, as Edmonton will not only overtake Calgary in terms of investment opportunity according to REIN, but building permits too. This is reportedly thanks to multifamily housing projects.
With the downtown arena finally underway, it’s all go in Edmonton. New transport extensions will enable even more development and make further growth viable. The LRT north to NAIT may be stalled for several months, but the south extension just received the green light and confirmation of $1.8 billion in provincial funding.
On the surface, this makes residential real estate in Edmonton appear very appetizing from an investment perspective, and may put the fire to the feet of renters that have been sitting on the fence. However, there can be a down side of a ton of new inventory being dropped on the market at once. For starters, it can make it much more competitive and water down supply, putting a dampener on residential rents. New inventory will absolutely be absorbed based upon migration trends. Yet, it’s perhaps the secondary effects of these trends which indicate the best moves today.
More residents and more money mean more shopping. Even Lamborghini is now planning on setting up shop in Alberta to take advantage of this. For real estate investors, retail could offer the best value.
So for those looking for the best Canadian property investments, it’s definitely worth checking out what investment opportunities are available by exploring mature neighborhoods in addition to hot redevelopment areas.
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