Alberta, Canada – Economic Crisis or Opportunity? Travis Cadman Discusses Real Estate Investment Potential in the Province

While Alberta is certainly going through significant economic instability, there still may be considerable opportunity for successful real estate investment. In the following article, Travis Cadman offers insight into Calgary real estate, and argues that it could be on the verge of exiting its years-long recession. Travis Cadman is the co-founder of Investar USA, a leading North American real estate development firm.

 Alberta, Canada is certainly enduring its share of economic instability. Nearly 90 percent of business owners in Calgary report a significant economic decline since the summer of 2018, and even major international brands – Starbucks, most notably – are closing locations throughout the province. So, this means that Alberta isn’t an especially promising region for real estate investment, right?
Wrong.

It’s true that the current state of the economy is somewhat bleak, but real estate takes a different view of regional economies than other industries. Successful real estate investment means conducting an in-depth analysis of prospective markets and finding locations with excellent growth potential. Alberta is showing signs of impressive GDP growth, which tends to be an accurate predictor of the health of the rental market.

Here are a few reasons why Alberta – and Calgary in particular – could offer excellent prospects for multifamily real estate investment.
  • The Calgary Economic Development Update predicts a 2 percent growth in GDP in 2020 and an additional 2.8 percent growth for 2021.
  • Migration to Alberta increased 40 percent in 2019 over the previous year.
  • Residential rental vacancies in Calgary are low, at roughly 3.9 percent as of 2018.
  • The Calgary Economic Development update states that weekly wages in Calgary are among the highest in Alberta.
Calgary’s recent decision to pursue economic diversification is also a positive move, since its economy had been largely based upon the health of the energy sector. Of course, if you plan on real estate investment of any kind, you must conduct an in-depth analysis of your target region. Nevertheless, Alberta (in general) and Calgary (in particular) could offer excellent long-term investment opportunities.

Travis Cadman is a real estate investor and founder of Investar USA, a North American real estate development firm.

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