Why Canadian Investors are Turning to Calgary
A Comprehensive Look at Calgary's Top 10 Investment Advantages
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Table of Contents
Why Canadian Investors are Turning to Calgary
Calgary’s Strong Economic Growth
Affordable Real Estate Prices in Calgary
Steady Population Growth
High Demand for Rental Properties
Favourable Laws for Landlords
Major Infrastructure and Development Prices
High Quality of Life in Calgary
Economic Diversification in Calgary
Boost from Tourism and Hospitality
Business-Friendly Environment
Pro-Tip: Find a Local Realtor
The Ideal Investment Destination
Why Canadian Investors are Turning to Calgary
Are you a real estate investor or landlord searching for your next big opportunity? Calgary is the place to be. With a booming economy, affordable housing, and high rental demand, this dynamic city offers everything investors need for success. Exciting infrastructure projects and a high quality of life make Calgary even more appealing. Discover why Calgary is quickly becoming a favourite for those looking to maximize returns and achieve long-term success in real estate.
Calgary’s Strong Economic Growth
Calgary has a strong and diverse economy. The city is well-known for its energy sector, but it also has strong technology, finance, and tourism industries. This diversity helps keep the economy stable even when oil prices go up and down.
In 2023, Calgary’s GDP grew by 3.5%, showing that the city’s economy is strong and healthy. This growth makes Calgary a reliable place for real estate investment. A strong economy means more jobs and more people who need places to live.
Affordable Real Estate Prices in Calgary
Real estate in Calgary can be more affordable compared to other big Canadian cities like Toronto and Vancouver. For example, the average home price in Calgary is around $500,000, while in Toronto, it is about $1 million, and in Vancouver, it is even higher.
Lower real estate prices mean that investors can buy properties for less money and get better returns on their investments. Affordable housing also attracts more people to the city, which increases the demand for rental properties.
Steady Population Growth
Calgary’s population is growing steadily. The city has an annual growth rate of 2%, and it is expected to add about 200,000 new residents by 2030. More people moving to Calgary means a higher demand for housing, particularly rentals.
That is great news for real estate investors. As more people move to the city, the demand for housing naturally increases. This growing demand means more opportunities for rental properties and higher occupancy rates. Additionally, with more people looking for homes, property values are likely to rise, leading to increased rental prices. For investors, this translates into better returns on their investments and the potential for long-term financial gains.
High Demand for Rental Properties
The rental market in Calgary is strong. There is high demand for rental properties because of job growth, immigration, and lifestyle preferences. Many people prefer renting to buying homes, especially when they first move to the city.
Calgary’s rental vacancy rate is around 1.4%, one of the lowest in Canada. This means that most rental properties are occupied, providing a steady income stream for landlords and investors. High demand for rental properties, driven by population growth and economic opportunities, ensures that rental properties in Calgary remain a solid investment.
According to the CMHC’s 2024 outlook, Calgary’s rental vacancy rate is expected to drop even further to 1.1% in 2024 and 1.0% in 2025. This decrease in vacancy rates indicates a tightening rental market, which is likely to result in continued upward pressure on rental prices. For landlords and investors, this trend signals a promising opportunity to achieve steady rental income and capitalize on the increasing demand for rental properties in Calgary.
Additionally, the CMHC report highlights that the average rent in Calgary has seen substantial increases over the past few years.
For instance, the average rent for a two-bedroom apartment rose by 14% to nearly $1,700 in 2023.
These rent hikes are expected to persist, making Calgary an attractive market for real estate investors seeking high rental yields. With a strong rental market and rising property values, Calgary presents a lucrative environment for those looking to invest in real estate.
Favourable Laws for Landlords
Calgary has strong laws that protect landlords, making it an attractive place for real estate investors. The Residential Tenancies Act in Alberta outlines clear rules for both landlords and tenants, ensuring that landlords can manage their properties effectively and fairly. For example, in Calgary, landlords have the right to evict tenants for non-payment of rent with a relatively short notice period, and security deposits can be used to cover unpaid rent or property damage.
In comparison, Toronto’s landlord-tenant laws tend to favor tenants more heavily. Ontario’s Residential Tenancies Act includes strict regulations on rent increases, which are capped annually, and it can be more challenging and time-consuming for landlords to evict non-paying tenants. These differences make Calgary a more favorable environment for landlords, providing them with greater control over their properties and rental income.
Knowing that there are strong legal protections in place in Calgary gives investors peace of mind. They can invest in Calgary’s real estate market with confidence, knowing that their rights as landlords are safeguarded. This legal framework helps create a secure and stable investment environment, encouraging more landlords and investors to consider Calgary as a prime location for their real estate ventures.
Major Infrastructure and Development Projects
Calgary is investing in big infrastructure projects. One of the most significant projects is the Green Line LRT, a light rail transit expansion that will make it easier for people to travel around the city. There are also many downtown revitalization projects and new residential and commercial spaces being built.
These projects improve the city’s livability and can lead to property value appreciation. For real estate investors, these infrastructure developments mean more opportunities to invest in new and emerging markets within Calgary.
High Quality of Life in Calgary
Calgary is consistently ranked high for quality of life. The city offers excellent healthcare, education, and recreational facilities. Calgary also has beautiful parks, a clean environment, and a safe community.
A high quality of life attracts new residents and businesses to the city, boosting the real estate market. People want to live in places where they can enjoy a good quality of life, and Calgary provides that.
Economic Diversification in Calgary
Calgary is not just about energy. The city is also growing in other industries like technology and finance. Calgary is home to over 450 tech companies, and its financial sector is expanding rapidly.
This economic diversification reduces the city’s reliance on any single industry, making the economy more stable. A stable economy is beneficial for real estate investors because it means that property values are less likely to fluctuate wildly.
Boost from Tourism and Hospitality
Calgary attracts millions of visitors each year. Major events like the Calgary Stampede bring in tourists from all over the world. In 2023, over 5 million tourists visited Calgary, generating $2 billion in revenue.
The tourism industry supports the short-term rental market, offering additional income streams for investors. Real estate investors can benefit from owning properties that cater to tourists and short-term renters.
Business-Friendly Environment
Calgary offers a favorable business climate with competitive tax rates and business incentives. The city has a low corporate tax rate of 8%, compared to the national average of 15%. This business-friendly environment attracts companies and workers to Calgary.
More businesses and workers moving to the city increase the demand for housing. This increased demand benefits real estate investors by driving up property values and rental prices.
Pro-Tip: Find a Local Realtor
Finding a local realtor is crucial when investing in Calgary’s real estate market. Local realtors have in-depth knowledge of the neighborhoods, market trends, and legal requirements. They can help investors find the best properties that meet their investment goals. A local realtor can also provide valuable insights into the best areas to invest in and help navigate the buying process smoothly. Working with a knowledgeable realtor ensures that investors make informed decisions and get the most out of their investments.
The Ideal Investment Destination
Investing in Calgary’s real estate market offers many benefits. The city has a strong and diverse economy, affordable housing prices, and a growing population. There is high demand for rental properties, and many infrastructure projects are improving the city’s livability. Calgary also has a high quality of life, favorable landlord laws, and a diversified economy.
Tourism and a pro-business environment further boost the city’s real estate market. These factors make Calgary an attractive place for real estate investors, landlords, and property managers. Investing in Calgary is a smart choice for those looking to diversify their portfolios and achieve long-term financial success.
Real estate investors should consider Calgary for its economic stability, growth potential, and investment opportunities. The future of Calgary’s real estate market looks bright, making now the perfect time to invest.
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