Ottawa’s real estate market is considerably benefiting from its local government and economy, according to an Engel & Völkers analysis.
In its Canadian 2019 Spring Market Report, the real estate services company attributed Ottawa’s housing strength to a vibrant economy impelled by 8.8% population growth. This rate is significantly above the overall national rate of 5.9%.
“With the market absorbing condos at a faster rate, coupled with the market’s population growth, there is a high probability of the local government approving more condo projects in the near future,” Engel & Völkers stated.
“As a result of more condo projects flooding the market and the local economy evidencing steady growth, Ottawa will likely continue to be an emerging hot housing market in Canada.”
The average price of a condo-class asset in the city stood at $307,659 last month, having increased by 14.3% on an annual basis. Residential-class properties also enjoyed 7.4% price growth to reach $488,729.
Year-to-date, average prices have risen by 8.7% for condominiums and 6.6% for residential.
Last week, the International Monetary Fund encouraged the federal government to reenergize the national economy by further easing trade barriers.
“The Canadian Free Trade Agreement signed in 2017 provides a platform for co-operation in reducing internal trade barriers, but several problematic aspects need to be resolved,” the IMF said, as quoted by The Canadian Press.
“The potential gains are sizable and could increase real GDP by almost 4% – a much larger gain than expected from recently signed international trade agreements.”
Canada’s real gross domestic product growth will likely moderate to 1.5% this year, the IMF estimated. Considerable recovery in 2020 is highly likely as the economy continues to find back its footing.