Real estate news for the province of Alberta has not been peachy keen lately. Even with new height restrictions (or lack thereof) on the downtown core in Edmonton, and an exciting new ice district, the province has been seeing month after month of falling or flat house prices. But as vacancy rates rise in commercial spaces, the demand for new apartment and condo complexes has curiously risen.
New data from real-estate services company Avison Young has shown that interest in multi-residential complexes rose in the first half of 2015. And while the notice has been particularly noticeable in Calgary, the interest in Edmonton has been equal, if not more, thanks to the capital’s recent revitalization projects focusing on the ice district.
According to , “multi-residential units are sprouting downtown, with more expected to come,” a sign that these types of buildings are not only economically viable, but that Edmonton’s downtown core could be seeing a better focus on a healthy combination of business and residential. Until now, Edmonton’s main core has been built to service the daytime working population, with evening and nighttime services leaving locals looking elsewhere.
With a refocus on apartment buildings, the real estate market also seems to be compensating for the drops in office space interest, which has left much of Albert’as prime office space vacant in the wake of dropping oil prices. The Avison Young report noticed that “the relative scarcity of available investment-grade multi-residential rental product has prompted institutional players to develop apartment projects as a means of balancing their real estate exposure to the Calgary market.”
The market changes are a good sign for Edmonton’s real estate market, however, based entirely on expected increases to the population. More people, after all, could mean more money being spent, and more people available to work once the oil markets return to normal. In the mean time, there seems to be plenty of space, both residential and commercial, for those looking to make Alberta their home.