Calgary Real Estate Investment CondosOntario & BC Buyers scooping up investment properties in Calgary.

The days of Alberta losing residents to other provinces are long gone. In the first quarter of 2023, the province saw a net increase of over 31,000 people from other parts of Canada, especially from the provinces of Ontario & BC.

However, people aren't just moving themselves and their loved ones to Alberta — a large percentage of them are moving their money. In the last few years, Calgary has seen a spike in out-of-province homebuyers scooping up investment properties they can rent out, with the motivating factor being comparatively affordable real estate.

Prices in Toronto, Vancouver and Victoria are completely out of reach, not just for homeowners but for investors as well. Therefore, people look outside of their markets and Calgary is extremely appealing.  The average price of a condo in Calgary is $310,000, compared to over $735,171 in the Toronto area and $814,000 in Metro Vancouver, according to the regions' local real estate boards. 

Whether you're an investor, a buyer or a renter, this phenomenon may mean different things for your bottom line. On the one hand, out-of-province real estate speculation has been driving up prices for potential buyers who reside in Calgary.

On the other hand, the trend could be viewed as a vote of confidence for the Alberta economy — and a supply of much-needed rental properties in an ever increasing tight market. And as home prices in Calgary increase, it's remained more affordable to buy a Calgary condo than in any other major Canadian city. It's also very likely that investors can cover their expenses through rent without having to hand over a chunk of cash every month from their own wallets.

Of course, the attraction is about more than cheap condominiums. Buyers in Alberta don't face land or property transfer taxes as in BC or Ontario, where they run between one and three percent of the final sale price on homes. There's also no cap on rent increases and housing legislation can be seen as favouring property investors.

We believe there will continue to be strong demand for income properties in Calgary, especially if immigration trends continue. The long-term outlook for the Calgary market is solid and wages are relatively high, so it's desirable for people from other parts of Canada. The oil and gas sector, always a core part of the economy, is raking in cash these days, but the local tech industry is also booming. 

We continue to get a high volume of calls from investors in Ontario and BC, as well as people looking to relocate so it is probably a pretty good bet that there will be growing demand for not only income properties but single-family homes as well.

Posted by Kirby Cox on


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