As we look toward 2025, Calgary’s real estate market shows strong indicators that the city is poised for continued growth and transformation. Fall 2024, in particular, is shaping up to be a crucial moment for investors to capitalize on key pre-construction trends. With a combination of high demand, government policy shifts, and evolving buyer preferences, Calgary is set to emerge as a significant player in the Canadian housing market.
A Surge in Population Growth
Calgary’s population growth remains one of the key drivers behind its booming real estate market. In recent years, the city has experienced an influx of new residents from other provinces, particularly as affordability in cities like Toronto and Vancouver declines. The Alberta government’s efforts to attract skilled workers through its immigration programs, alongside a relatively lower cost of living, make Calgary an attractive destination for those seeking new opportunities.
This surge in population is pushing demand for both rental and homeownership opportunities. According to recent CREB (Calgary Real Estate Board) data, the number of new housing starts in 2024 has already increased significantly compared to previous years. This trend is expected to continue into 2025 as developers scramble to meet the demand for housing, particularly in the condo and multi-family sectors.
Government Policies Shaping Development
In May 2024, Calgary’s City Council passed a significant rezoning initiative aimed at increasing housing density. The blanket rezoning, which allows the construction of duplexes, triplexes, and fourplexes in areas previously zoned for single-family homes, will have a lasting impact on Calgary’s real estate market heading into 2025.
This policy shift is designed to address the city’s affordability challenges by increasing housing supply and reducing urban sprawl. As a result, investors are expected to flock to pre-construction projects that leverage these new zoning allowances, particularly in desirable inner-city neighborhoods. The trend toward denser, multi-family developments not only provides more housing options but also presents lucrative opportunities for those investing in pre-construction properties.
Shifting Preferences: Condos on the Rise
Another noticeable trend in fall 2024 is the renewed interest in condo developments. As Calgary’s housing market becomes more competitive, many first-time buyers and investors are turning to pre-construction condos as a more affordable entry point. Condos also provide investors with a low-maintenance option that can generate strong rental yields, particularly in the downtown core where demand remains high.
Heading into 2025, this trend is likely to gain momentum. With a surplus of condo units expected to hit the market in 2025, investors who position themselves now will be in a strong position to benefit from rental demand. Additionally, as Calgary continues to evolve into a more urbanized city, younger professionals and downsizers are increasingly choosing condos for their convenience and lifestyle benefits.
Economic Confidence Driving Demand
The broader economic landscape in Alberta is also playing a crucial role in shaping Calgary’s real estate market. With oil prices stabilizing and a diversified economy emerging, confidence in Calgary’s long-term growth is solidifying. The city’s tech sector is expanding rapidly, attracting new talent and creating jobs that are helping to fuel housing demand.
Looking into 2025, the economic outlook suggests continued growth, particularly in industries like renewable energy and technology. This economic stability will further boost consumer confidence, leading to sustained demand for housing, particularly in pre-construction developments that offer modern amenities and smart technologies.
Conclusion: Seizing the Moment
Fall 2024 is a pivotal time for Calgary real estate investors. The combination of population growth, favorable government policies, and evolving buyer preferences positions the city as a prime location for pre-construction investment. By understanding these trends and acting on the opportunities they present, savvy investors can make informed decisions and reap the rewards as Calgary’s real estate market continues to flourish in 2025.