Calgary’s strong real estate market in 2021 set to continue into 2022

PWC Highlights Strength of Calgary Industrial Real Estate as Leading Indicator of Economic Growth, Supporting Residential Real Estate

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Calgary’s real estate market has had a record year in 2021 so far, and the good times are expected to continue into 2022, a new report suggests.

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PwC released its real estate forecast in Canada for 2022 this fall, including for Calgary, noting that the city is experiencing new optimism about its economy and, therefore, real estate.

Given the growth in gross domestic product between 2022 and 2025 of nearly 3% per year, strong demand is expected to continue for resale and new homes.

Referring to data from the Conference Board of Canada, the report says tight supply conditions will persist for single-family homes in the city for 2022, prompting a strong backlash from builders with housing starts ultimately reaching nearly $ 12,000. by the end of 2024.

In addition, the city is expected to see an increasing demand for migration. Already, notes the PwC study, Calgary tied for fourth in migration to Canada in the past year with Kelowna and Saskatoon.

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Highlighting the city as a “market to watch” in the report, PWC highlights the strength of Calgary’s industrial real estate – the vacancy rate down 9% – as a leading indicator of economic growth, which supports the residential real estate.

The reallocation of downtown offices into residential units is another emerging trend that could gain traction in the new year, he notes. Nonetheless, PwC reports that local experts interviewed about the strategy offered mixed reviews on the viability of the strategy, noting that the costs are likely to outweigh the benefits.

Interviewees also noted that while Calgary remains affordable compared to other major markets in Canada, more government incentives are likely needed to encourage increased construction of low cost homes to meet expected growing demand.

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