Calgary’s real estate market offers unique opportunities for investors looking to start or expand a real estate portfolio. Known for its relatively affordable property prices, steady population growth, and a diversified economy, Calgary has emerged as a highly desirable market in Canada.
Partnering with a leading Calgary investment realtor can assist investors in identifying ideal properties, both in and around the city, which align with their objectives and have good potential.
Jesse Davies, leader of the Jesse Davies Team with Century 21, shares some of his insights on what investors need to know before starting or expanding their portfolios in Calgary.
Why Calgary?
Calgary offers a unique combination of affordability, strong economic growth, demographic factors, and other benefits, making it a prime location for real estate investment.
Regulatory Factors
The regulatory environment in Calgary offers an edge for investors. Alberta does not impose rent increase caps, allowing landlords greater flexibility to manage inflation and rising costs. Another key advantage that Calgary offers is that it has one of the lowest property tax rates among major Canadian cities, enhancing its appeal to investors.
Economic Drivers
Calgary’s economic resilience, bolstered by its energy sector, diversified industries, and growing tech ecosystem, provides a good foundation for real estate investment.
Historically, Calgary’s economy has been heavily tied to the energy sector. While oil and gas remain important, significant diversification has taken place over the last decade, creating a more balanced and resilient economic foundation. Key sectors now include technology, renewable energy, film production, and logistics.
Calgary has emerged as the fastest-growing tech talent market in North America, securing a spot among the continent’s top 20 tech hubs. The city is also emerging as a hub for clean energy, with companies investing in hydrogen production, wind power, and carbon capture technology. These industries draw a highly skilled workforce, increasing demand for housing and office spaces alike.
Meanwhile, Calgary’s geographic location makes it an important logistics and distribution hub. Proximity to major transportation routes and the U.S. border has encouraged investment in industrial properties, including warehouses and fulfillment centers. For investors, this diversification minimizes the risks associated with energy market volatility while creating opportunities in both residential and commercial real estate.
Job Market and In-Migration
Supported by these strong economic factors, employment stability is a key driver of Calgary’s housing market. The city’s unemployment rate is currently below the national average, supported by growth in high-demand industries such as healthcare, technology, and construction. Calgary’s affordability compared to cities like Vancouver and Toronto has made it a popular destination for interprovincial migrants seeking lower housing costs and better job prospects.
Population Dynamics
This influx of job seekers, both from within Canada and internationally, has created sustained demand for housing, especially entry-level homes and rental properties, particularly in family-oriented neighbourhoods and urban districts with strong amenities. The city experienced consistent population growth, increasing by an impressive 6.2% year-over-year in 2023, helping to provide reliable demand. Projections estimate over 1.6 million residents by 2029.
Calgary’s young and diverse population contributes to a vibrant housing market. The city’s median age of 38 is significantly younger than the national average, and younger residents are more likely to rent. They often prioritize walkability, transit access, and proximity to employment hubs. Investors who understand these preferences can target high-demand properties in areas like Beltline, Bridgeland, and Kensington.
Demand for Diverse Housing Types
Population growth has led to rising demand for both single-family homes and multi-family properties. Alternative affordable housing options such as duplexes, townhouses, and legal secondary suites also garner ample interest. Suburban areas like Mahogany and Tuscany cater to families, while urban neighbourhoods attract professionals and students.
This diversity of demand provides opportunities for investors to diversify their portfolios. For example, a combination of suburban single-family homes and urban condos can balance cash flow with long-term appreciation.
Neighbourhood Overview
Understanding neighbourhood dynamics is essential to developing an investment strategy and finding the right properties to fit that strategy. Partnering with local real estate agents and property managers can provide invaluable insights into market trends and tenant preferences.
Urban Hotspots
Beltline is Calgary’s cultural and entertainment hub, offering a mix of high-rise condos, trendy cafes, and nightlife. This area attracts young professionals who prioritize walkability and proximity to downtown offices. Condos in Beltline have shown consistent appreciation, while rental yields remain high due to low vacancy rates.
Davies comments, “Condos in these urban areas offer an affordable entry point into these desirable neighbourhoods, enabling investors to capitalize on low vacancy rates for rental income and benefit from potential property appreciation.”
Bridgeland/Riverside, another urban neighbourhood, combines historic charm with modern amenities. This trendy neighborhood, and balances urban living and green spaces. Its mix of character homes and new developments appeals to both renters and buyers, making it an excellent option for investors seeking properties with renovation potential. Davies adds, “Bridgeland’s revitalized areas have boosted property values notably while encouraging a low rental vacancy rate.”
Suburban Growth Areas
The suburbs are experiencing significant growth, driven by families seeking affordable housing and access to schools, parks, and community amenities.
Mahogany, with its lakeside properties and close community atmosphere, has become one of Calgary’s fastest-growing and most sought-after neighbourhoods. The average property value in Mahogany has increased steadily, and rental properties targeting families have offered stable cash flow. Davies notes Mahogany has experienced notable year-over-year appreciation, offering promising long-term returns, especially for pre-construction investments.
Tuscany, located in northwest Calgary, provides excellent schools, transit access, and recreation. Investors can find single-family homes with good appreciation potential and steady rental demand.
Offering suburban charm while still being close to downtown, Killarney/Glengarry appeals to families and professionals. Properties here, especially older homes with renovation potential, have also shown strong appreciation, according to Davies.
Emerging Investment Areas
East Village has undergone a remarkable transformation, evolving into a unique mixed-use district with waterfront properties, cultural attractions, and pedestrian-friendly streets. Both pre-construction projects and established properties are available.
Seton, a newer community in southeast Calgary, is rapidly becoming a major employment and retail hub. With its hospital, shopping centers, and future Green Line LRT connection, Seton is poised for significant growth, making it an ideal area for long-term investments.
Calgary Initiatives and Development
Calgary has introduced several initiatives and developments; these can provide opportunities and advantages for those investing in real estate.
Infrastructure and Urban Development
Calgary’s extensive infrastructure projects are shaping and revitalizing the city’s future. For example, the Green Line LRT project will connect northern and southeastern neighbourhoods, enhancing accessibility and potentially boosting property values. Additionally, major roadway expansions, including the recently completed Calgary Ring Road, increase the desirability of suburban areas while maintaining the appeal of urban cores.
Office Conversion Initiative
Calgary’s Office Conversion Initiative is a transformative program aimed at revitalizing the downtown core by repurposing vacant office buildings into residential, educational, and mixed-use spaces.
This strategy addresses high office vacancy rates while creating new opportunities for real estate investors and developers. A centrepiece of the initiative is the conversion of 11 office buildings into residential units, adding over 1,400 homes and fostering a lively downtown community that can drive demand for property management and real estate services.
The city is also encouraging educational institutions to establish a presence downtown, transforming unused office space into academic and research facilities, which further bolsters the need for housing and infrastructure. Incentive programs, including grants covering up to 50% of demolition costs and funding for asbestos removal, enable developers to prepare prime locations for redevelopment into hotels, cultural spaces, or other uses.
Secondary Suite Incentive Program
Calgary’s Secondary Suite Incentive Program offers up to $10,000 per property owner to support the construction and registration of safe, legal secondary suites. The program focuses on funding safety upgrades like egress windows, smoke-tight barriers, interconnected smoke and carbon monoxide alarms, protected exits, and split heating systems. Additional funding is available for energy-efficient upgrades and accessibility features. Property owners must secure permits before starting construction, and funding is contingent on addressing identified safety deficiencies.
Rezoning Bylaw
Additionally, earlier this year, Calgary’s City Council approved comprehensive rezoning reforms designed to boost housing density and diversify housing options citywide. These changes permit the development of duplexes, triplexes, and fourplexes in neighbourhoods that were previously designated exclusively for single-family homes. This can create additional opportunities for investors.
Rental Market Dynamics
Calgary’s rental market remains robust, with low vacancy rates, strong demand, and favourable rental prices for landlords. Popular demographics include students, young professionals, and families, with properties near transit hubs and universities commanding higher rents.
Source: CMHC
Investment Strategies for Calgary’s Market
Pre-Construction and Development
Investing in pre-construction properties allows investors to benefit from appreciation during the development phase. Davies notes that “Calgary’s expanding transit network and urban revitalization projects make pre-construction condos in areas like Beltline and East Village particularly attractive.”
Be sure to analyze the developer’s track record and ensure the project is in a high-demand location. Delays and cost overruns can affect profitability, so thorough due diligence is essential.
Value-Add Properties
Value-add strategies, such as renovating older properties or converting single-family homes into multi-unit rentals, can significantly boost returns.
For this strategy, Davies suggests that “Calgary’s mature neighbourhoods, such as Mount Pleasant and Killarney, offer excellent opportunities for such projects. Also, adding a legal secondary suite, to a suitable property, is also an effective way to develop the home into an effective rental income property. These suites are particularly appealing to tenants seeking affordable housing options.”
Short-Term Rentals
Tourist-friendly areas like downtown and Kensington are ideal for short-term rental properties, according to Davies. Investors must obtain permits and comply with strict guidelines. Conducting a thorough cost-benefit analysis is essential to determine whether short-term rentals align with your investment goals.
Multi-Family Investments
Multi-family properties, such as duplexes, triplexes, and small apartment buildings, offer scalability and diversification. With Calgary’s rental market experiencing low vacancy rates and rising rents, multi-family investments have the potential to provide cash flow and long-term stability.
Mitigating Risks
As with any investment, there are risks. Davies reminds investors, “To mitigate risks, investors should focus on well-researched neighbourhoods, diversify their portfolios, and maintain a long-term perspective. Regularly monitoring market conditions and adjusting strategies accordingly will help navigate challenges effectively.”
Calgary’s real estate market presents excellent opportunities for investors looking to maximize returns and build a diverse portfolio. From value-added properties in mature neighbourhoods to pre-construction condos in revitalized areas, strategic investments can lead to successful appreciation and consistent rental income. Partnering with a leading real estate team is key to navigating Calgary’s dynamic market and making informed decisions.
The Jesse Davies Team, recognized as one of Calgary’s top realtors, provides expert guidance tailored to your investment goals. With in-depth market insights and a proven track record, Jesse Davies and his team help investors identify high-potential properties and implement strategies to enhance their value. Whether you’re exploring urban hotspots, growing suburban communities, or other prospects, their expertise ensures you have the support needed to succeed in Calgary’s competitive market.