Jan. 10, 2020 | Mario Toneguzzi
Turning the corner: Calgary real estate industry offers reasons for optimism in 2020This past year has been a challenging one for Calgary's economy and real estate market, but amid all that doom and gloom, some positivity might be warranted.
In fact, Robert Hogue, senior economist with RBC Economics, says there are good reasons to feel cautiously optimistic about Alberta's growth prospects in 2020. For one, the gradual lifting of mandated oil production cuts will set the stage for a significant increase in energy output. Gains in existing pipeline efficiency, as well as the entry into operation of the Canadian section of Enbridge's Line 3 pipeline, will help, as will increasing crude-by-rail capacity.
"We expect capital investment to pick up, in part reflecting the ramping up of the Trans Mountain pipeline construction (though most of the work will take place in British Columbia). Corporate income tax cuts by the provincial government will also create a more favourable investment environment in the province. Expanding business activity augurs well for Alberta's labour market to progress faster," said Hogue in a recent provincial outlook report.
Positive economic signs translate into a good environment for developers to plan future mixed-use real estate developments, as well as proceed with projects already proposed or under construction.
Don't write off Calgary commercial and residential real estate just yet. We may have hit a few bumps in the road during the past couple years, but signs point to the city starting to bounce back – now and in the coming years.
Despite the economic malaise of the past five years, several massive real estate projects have moved along quite nicely. Key developments include University District, Currie, Trinity Hills, Greenwich and Township, among many others.
As famed author Mark Twain allegedly once said, "Reports of my death have been greatly exaggerated." Perhaps the same can be said for commercial real estate development in Calgary.
Despite challenging economic times, millions of square feet are in the process of development, while retail and industrial real estate space remain relatively hot commodities. Thousands of residential units are also being built on those mixed-use sites.
If you want an even more positive outlook, check out the inventory of private- and public-sector major projects on the Government of Alberta website, which lists the top projects in Calgary valued at $5 million or greater.
So, don't write off Calgary commercial and residential real estate just yet. We may have hit a few bumps in the road during the past couple years, but signs point to the city starting to bounce back – now and in the coming years.
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