Calgary is world famous for the Calgary Stampede and for Spruce Meadows and its proximity to Banff National Park.
But, according to one global real estate consultancy, Calgary is on top of the world for a reason other than mounts and mountains: returns on property investments.The 2012 IPD Global Cities Report, unveiled at a real estate conference in Paris earlier this summer, places Calgary at the top of the heap of global cities for best returns on real estate investment. The index compares 60 international cities and covers four major property types: retail, office, apartment and industrial.
According to the report, Calgary was one of the world’s most improved markets, with total returns of 8.7 per cent in 2010, but shooting up to 21.6 per cent in 2011. “An energy-driven economic boom in Alberta...generally benefitted the city, and brokers reported prime office space in the central business district to be near full occupancy at year-end,” the report states.Other global cities that performed well on returns on property investments included San Diego, Portland,
and Seattle. The three other Canadian cities on the list—Vancouver, Montreal and Toronto—ranked 8th, 9th, and 10th, respectively.Despite the modest slowdown in general economic activity in Alberta this year, commercial and industrial activity continues to be a propeller of Calgary’s economy. Returns on investment may soften, but the city continues to attract international attention by the real estate investor.
Senior Economist, ATB Financial