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Almost halfway through 2021, and we’re finally starting to see some signs of life slowly returning to normal in the face of the coronavirus pandemic. With vaccine rollout picking up speed, businesses and individuals across Canada are excited to return to life and work pre-pandemic style.
In Alberta’s largest cities like Edmonton and Calgary, rideshare services are reporting improving performance and industries across niches are slowly recovering, with the same trends being seen across the US as well.
Take a look at the industries in Alberta that are setting the pace by leading the return to normalcy.
In both the US and Canada, rideshare services like Uber had been severely affected by the pandemic. Since 2020, the average daily bookings had been at record lows, with the number of riders suddenly dropping in March when the pandemic was announced.
The decrease in riders had also resulted in a decrease in drivers, but after a full year of uncertainty and diminished profits, Uber has finally announced record bookings in March 2021.
The gross bookings in March hit the highest monthly level in Uber’s 12-year history. Many of the riders reportedly were going to restaurants, shopping, to the office, to view real estate, and/or to the hotel. This is great news for those businesses, real estate investment trusts (REITs) and CRE investors.
The hotel and travel industries have been hit the hardest by COVID-19 due to travel restrictions, but tides are turning in these sectors as well. In Alberta, we’re seeing a significant rise in hotel and airline bookings, with many places already reporting summer sellouts.
The renowned online marketplace Airbnb reports the demand for hosts and lodging is currently outweighing the supply, so countless new hosts are needed to fill the gap.
Canadian CRE investors have been anticipating the reopening of bars and restaurants in Alberta ever since the initial lockdowns. And finally, with easing restrictions, the food services industry is starting to show signs of recovery in both Canada and the US.
In March and April of 2021, we’ve seen a spike in transactions in restaurants all around Alberta, most notably in Edmonton and Calgary. While it will still take more time to recover from the financial losses of 2020 fully, things are starting to look up as vaccines roll out and customers seek opportunities to socialize.
It is no surprise that real estate investing is the playground for the rich, and according to data recently published it is also the best performing investment in modern history. After the rollercoaster that was 2020, businesses and Canadian CRE investors are excited for the return to normal. With borders reopening and restrictions slowly lifting, now is the prime time to boost investments in Canadian CRE.