Investment in Edmonton’s real estate has grown for the third consecutive year in 2018, according to a new analysis by Altus Group.
Sales of investment properties increased by 37% last year, with the industrial sector accounting for the largest portion at $878 million spread across 220 transactions.
Total real estate investment volume grew to $3.94 billion in 2018, “despite a national struggle to balance supply and demand in real estate,” Altus noted.
“This level of investment lead to robust gains in the Industrial sector and the Apartment sector in 2018,” the report added. “Demand for new office and industrial space is expected to stay strong over the next year,”
The office segment had a $149-million surge last year, while the retail market enjoyed a $141-million growth.
“However, the office vacancy rate increased slightly to above 15% in 2019, with continued demand for new modern spaces in the downtown region.”
The apartment sector posted the largest year-over-year increase in terms of dollar volume, up by 69% to reach $849 million. Residential land investment also increased by 18%.
These results mirrored the findings of a Marcus & Millichap study late last month, which hailed the Edmonton market’s prospects for the rest of 2019 as remarkably positive.
The commercial sector was predicted to particularly benefit, with the completion of around 1.2 million square feet of office space by year-end most likely boosting market activity.
Much of the purchases in this market will likely be made by established companies relocating to newer spaces that would better suit the needs of their expanding, ever-advanced workforces.