Is Calgary a Good Place to Invest in Real Estate?
- August 7, 2023
- By Eric Palin
Is Calgary Real Estate a Good Investment?
Calgary real estate is an ideal investment given the "triple advantage" opportunity
We often get asked if Calgary is a great place to invest in real estate. After all, the city seems to stand out as a promising destination for astute investors given its lower-than-usual price points versus other major Canadian metropolises.
The city's unique combination of factors, including lower acquisition costs, a resilient economy rooted in the energy sector, and a reputation as one of the most livable cities globally, makes it an attractive option for those seeking to diversify their investment portfolio.
In this article, I delve into these three key reasons that make investing in Calgary real estate a compelling opportunity. Also see:
#1 - Lower Acquisition Cost
One of the most enticing aspects of why Calgary is an excellent place to invest in real estate is its lower acquisition costs than other major Canadian cities like Vancouver and Toronto.
This affordability factor significantly widens the entry point for investors, allowing them to capitalize on potential opportunities without the exorbitant upfront costs seen in other markets.
The city's more reasonable real estate prices offer investors the potential for higher returns on their investment, making it an ideal location for those looking to maximize their return on investment (ROI).
#2 - "Energy" Insulated Economy
Calgary is Canada's energy hub, a fundamental driver of economic stability in the city, province-wide, and nationally.
But how does the energy sector make Calgary a great place to invest in residential real estate?
With a strong foundation in oil and gas, the city has established itself as a key player in the booming global industry, attracting professionals, companies, and related businesses. This unique ecosystem has enabled Calgary to weather economic storms more effectively than other cities.
Even during challenging times for the global economy, the energy sector's resilience contributes to maintaining a steady demand for real estate in the city.
#3 - Award-Winning Livability
A long-standing reputation as one of the most livable cities globally is another reason Calgary is a good place to invest in real estate.
The city consistently ranks high in various livability indices, recognizing its quality of life, safety, healthcare, education, and overall urban experience. These accolades make Calgary an attractive place for residents and enhance the potential for a strong rental market.
Investors can tap into this demand by purchasing properties that cater to the needs and preferences of the city's residents, ensuring steady rental income and property appreciation.
The Confluence of Benefits
When these three key factors - lower acquisition cost, an insulated economy driven by the energy sector, and exceptional livability - converge, they create a unique investment landscape that stands out in the Canadian real estate market.
Let's explore the synergy of these benefits in more detail and why they make Calgary an excellent place to invest in real estate:
Diversification Potential: Calgary's real estate market offers investors a diversification opportunity within their portfolios. With a lower cost of entry, investors can allocate their capital to a new market without overextending their resources. This diversification can help manage risk and enhance the overall resilience of an investment portfolio.
Long-Term Stability: The energy sector's presence in Calgary contributes to the city's long-term economic stability. While other markets might experience more volatility, Calgary's economic base acts as a buffer against extreme fluctuations. This stability translates into a real estate market more likely to hold its value over time.
Rental Market Potential: Calgary's reputation for livability attracts homeowners and renters seeking a high-quality urban lifestyle. Investors can tap into this growing demand by investing in rental properties that cater to the preferences of the city's residents. A thriving rental market can provide consistent cash flow and enhance the investment's overall profitability. Alberta is consistently known to have high net inbound migration levels, and Calgary is no stranger to a tight rental market.
Appreciation Prospects: As Calgary continues to attract businesses, professionals, and residents due to its economic stability and high quality of life, the demand for real estate will inevitably grow. This increasing demand can drive property appreciation over time, potentially offering investors a favourable return on their initial investment.
Should You Invest in Calgary Real Estate?
Investing in Calgary real estate offers a unique opportunity for individuals seeking to expand their investment portfolio. The city's trifecta of advantages - lower acquisition costs, a resilient economy centred around the energy sector, and its reputation as one of the most livable cities globally - creates a compelling proposition for investors.
With the potential for diversification, long-term stability, strong rental market potential, and property appreciation, Calgary emerges as a destination that combines both financial opportunity and lifestyle quality.
As always, thorough research, due diligence, and consultation with real estate professionals are essential before making any investment decisions and that is our specialty and passion.
Get the Best Advice on Your Investment
Contact Eric and the Calgaryism real estate team today to discuss your investment goals. We have helped countless out-of-city investors accomplish theirs and would love the opportunity to do the same for you.
We look forward to discussing your real estate goals further!