Calgary offers unique advantages and untapped potential for investors seeking robust returns and long-term growth. Calgary is a vibrant urban centre, providing a balanced mix of city living and easy access to the beauty of the nearby Rockies. A strong economy and ample recreational activities of all sorts, as well as a wide variety of neighbourhoods to cater to all lifestyles and budgets, ensure a strong foundation for real estate investors. Real estate investment options abound, from detached houses to condos, townhouses, and pre-construction properties.
Economic Resilience and Diversification
Calgary’s economic landscape, once focused mainly on energy, has evolved; in fact, a key reason to invest here is its multifaceted job market. In addition to oil and gas, industries such as manufacturing, technology, finance, healthcare, and education are thriving. This diversification not only lowers the risks of fluctuations in a single sector, but also drives continuous economic expansion.
With a mix of corporate headquarters and local enterprises, Calgary nurtures entrepreneurship and supports business growth, fostering a dynamic job market that lures skilled professionals, both permanent and temporary. This dynamic contributes to a consistent demand for housing, establishing a dependable economic environment ideal for long-term real estate investments.
Employment
Calgary was the only major Canadian city to have a decrease in unemployment rates in January 2024, with the three-month moving average unemployment rate dropping from 6.4% in January 2023 to 5.7% in January 2024, and an employment increase of 4.9%, with particularly significant gains in manufacturing jobs. These employment levels make Calgary a secure, stable location to base investments on.
Affordable Market Entry and Growth Potential
Compared to other major Canadian cities like Toronto and Vancouver, Calgary offers more affordable market entry points for real estate investors. The city’s housing market presents opportunities for investors to acquire properties at competitive prices, with significant upside potential for appreciation.
“As Calgary’s economy continues to evolve and thrive, property values are poised to rise, translating into attractive returns for investors over the long term,” notes Jesse Davies of Jesse Davies Real Estate.
Population Growth and Urban Expansion
Calgary’s population growth trajectory is another compelling factor driving real estate investment opportunities. The city’s strategic location, coupled with its reputation for economic opportunities and quality of life, attracts migrants from other provinces and countries, as well as internal migration from rural areas. This influx of residents fuels demand for housing across all segments of the market, from starter homes to luxury condominiums, creating a favourable environment for real estate investors to capitalize on rental income and property appreciation.
Moreover, Calgary’s urban landscape is undergoing rapid expansion, with new developments sprouting up in both residential and commercial sectors. From master-planned communities to mixed-use complexes, these projects cater to the diverse needs and preferences of Calgary’s growing population, presenting investors with a myriad of opportunities to participate in the city’s urban growth story.
Calgary’s 2024 metro area population is 1,665,000, a 1.52% increase from 2023. At that time, the population was 1,640,000, showing a 1.8% increase from the previous year. A range of demographics, including younger professionals and temporary foreign workers, ensure a variety of housing is needed, including rentals, from apartments and condos, to attached or detached houses. As a result, there are ample opportunities for investors to cater to these needs.
Infrastructure Investment and Connectivity
It’s also an excellent location for real estate investment due to its well-developed infrastructure and transportation network. Well-maintained roads, robust public transit, and nearby airports accommodate a growing population and ensure efficient mobility. Neighbourhoods and properties near key transit hubs and major routes can be very desirable, and can generate higher rents.
This also means amenities such as shopping malls, parks, and recreational facilities are easily accessible, which significantly enhances Calgary’s livability, helping to attract renters and keep property values high for ongoing appreciation.
Resilient Rental Market and Investment Diversity
For investors interested in income-producing assets, Calgary’s rental market offers resilience and stability. With a healthy demand-supply balance and a diverse tenant pool ranging from students and young professionals to families and retirees, the rental market presents attractive opportunities for investors to generate steady cash flow and build wealth over time. Additionally, Calgary’s real estate market offers a range of investment options beyond traditional residential properties, including commercial real estate, industrial spaces, and mixed-use developments, allowing investors to diversify their portfolios and mitigate risk.
As of March 2024, the Calgary Real Estate Board reported ongoing demand, marked by increasing prices, and demonstrating the desirability of Calgary real estate.
Catering to Target Demographics
Calgary presents a diverse range of residential investment opportunities, catering to various preferences and budgets for those looking for rentals or properties to resell. Apartments, condos, starter homes including attached dwellings, and higher-end detached residences are all available. Both new developments and established properties can be found.
According to Jesse Davies of Jesse Davies Real Estate, “The variety of properties and neighbourhoods means that investors can find good options that fit within their financial constraints, while ensuring the property offers the location and features necessary to attract tenants or prospective buyers. You can select and tailor investment properties to specific demographics, helping maximize your rental income potential and maintain your future resale value.”
Strategically selecting properties in the most suitable neighborhoods is critical. Leveraging the expertise of a seasoned Calgary realtor well-versed in local market dynamics and neighborhood nuances is invaluable. Such professionals can guide investors towards properties that can fit within a budget while boasting high potential and strong appeal to target demographics, to maximize returns on investment.
Unique Condo Market
Calgary condos in particular can provide excellent opportunities for investment, as well as personal ownership. They are relatively affordable, and provide good options for rentals for tenants of all lifestyles and age groups. The downtown condo market caters well to young professionals; while the university area lends itself well to renting to students. There are several other neighbourhoods with excellent condo options available, each suited to different types of renters.
Condo rentals in Calgary offer attractive income opportunities for investors, with the average two-bedroom purpose-built market rent standing at $1,695, while two-bedroom condo rentals fetch an average of $1,819. Moreover, rental demand remains stable, evidenced by the lowest vacancy rates in nearly a decade experienced in 2023, with expectations for this trend to persist.
Finding a Calgary condo realtor with experience in investment condos can help with identifying suitable options.
Strong Neighbourhoods for Every Need
Certain neighbourhoods show strong growth and potential or have ongoing popularity, catering to different demographics, making it easy for investors to find excellent options:
In 2022, Coach Hill saw a 4.6% increase in benchmark prices, reflecting its appeal to various demographics such as young professionals, families, and empty nesters seeking scenic views and convenient amenities near downtown Calgary. Cougar Ridge, during the same period, experienced a substantial 13.1% growth, attracting affluent families and professionals seeking premium living amidst top-rated schools and recreational facilities in a tranquil suburban setting. Patterson, known for its executive-style homes and upscale condominiums, witnessed a notable 9.1% growth, due to its appeal to established professionals, empty nesters, and families looking for a peaceful suburban environment.
Scenic Acres, which saw an impressive 20.9% rise in 2022, mainly offers detached single-family homes ideal for families and retirees looking for quiet neighbourhoods with ample green spaces.
Signal Hill, a higher-end area, experienced a 5.6% increase in benchmark prices, and caters to several groups with its proximity to schools, parks, downtown access, and more. Tuscany, a northwest suburban neighbourhood known for diverse housing options and beautiful parks and community amenities, saw a 9.7% growth in benchmark prices in 2022. Inglewood, situated east of downtown, boasts a rich historical heritage and a thriving arts and culture scene. Kensington, north of downtown, offers a walkable environment with a mix of historic and new residences, along with various dining, shopping, and entertainment options. Mission, located south of downtown, is renowned for its trendy cafes, restaurants, and boutique shops, nestled amidst historic homes.
These are just a few of the options; there are several more emerging neighbourhoods with good potential for investment.
Calgary’s range of unique neighbourhoods create a unique landscape, allowing investors to find the perfect property to target for optimal returns. However, investors must ensure thorough market research; expert guidance from a skilled Calgary realtor adds a significant competitive advantage, as well, since a deep understanding of emerging neighborhoods, rental demand, and market trends is key to informed decision-making. Professional advice from realtors like the Jesse Davies Real Estate Team provides invaluable insights tailored to an investor’s goals, helping pinpoint lucrative opportunities. By offering a range of related services, such as property management, rental income analysis, and access to a trusted network of other professionals, they offer a seamless investment experience.
