Investment in Edmonton’s real estate continued to build year-over-year in 2018 according to a new report from the Altus Group.
A total investment volume of $3.94 billion marked the third consecutive year of year-over-year gains with a 37% rise compared to 2017.
Industrial and apartments were the star performers with industrial’s 220 transactions contributing $878 million towards overall investment volumes, the largest share among the main sectors.
The apartment sector posted the largest relative increase in dollar volume year-over-year, increasing 69% to $849 million.
There were also gains for residential land investment which saw an 18% year-over-year gain.
The Office and Retail sectors both saw significant gains in 2018, $149 million and $141 million respectively. But the office vacancy rate increased slightly to above 15% in 2019, with continued demand for new modern spaces in the downtown region.
There were mixed results for the new home market which continued weaker the weaker sales trend seen in 2018. Condominium apartment sales are down but townhouse sales remain comparably robust. Additionally, the decline in the condominium market has resulted in stronger demand for rental apartment options.
2019 saw a slower start
The bad news is that 2019 has started slower with Q1 2019 posting a 12% decrease from Q1 2018 and a 22% decrease from Q4 2018.
The full report can be viewed at: https://datasolutions.altusgroup.com/download-edmonton-flash-report-2019/