Calgary investment review

Interest rate drops and population growth fuel Calgary’s real estate

The market saw increased activity across the board due to multiple factors including the declining interest rates and the growing Alberta migration.
 

Investment trends to watch

01. Alberta is poised for demand with migration on the rise

With the influx of new migrants from other provinces and new temporary residents, Alberta is at the forefront of the nation’s population growth, bringing about a new boom for major centres like Calgary. A growing population drives up increased demand in the market for real estate, and more capital to spend as properties and land are more affordable compared to other well-established markets such as the Vancouver area and Greater Toronto Area.

02. Interest rates reawakening dormant players in the market

Interest rates are finally coming down after a long hold of 5% by the Bank of Canada, now placed at 4.50% since July 2024. Older players are re-emerging into the fray as the cost of lending has decreased, bringing about more demand and competition in the market. Additional cuts are anticipated this year, which will further drive up this trend as lenders and purchasers become more willing to take on risk in their investments.

03. Competition grows as the bid-ask spread begins to narrow

Competition is on the rise, narrowing the gap between asking prices and offers. Many are becoming more comfortable taking on a higher risk profile and are moving quickly to get into the current market before prices inevitably go up as more migrants come into the province. With supply already being limited in most asset classes, vendors are being more strategic about their timing and when gauging offers from potential purchasers.