Downtown Calgary is the next big play for multi-family residential developers, according to Cameron McNeill, president of Mac Marketing Solutions, Vancouver’s market-leading condominium sales agent.
“It is a unique time in Calgary’s real estate history,” McNeill said. “There is a growth opportunity not only for real estate developers, but for industry service providers. There are just not enough skills and experience to satisfy the market.”
McNeill expects Calgary to account for 40% of Mac’s project marketing within three years, up from 25% today. Mac has sold 14,000 condominiums since 2001.
The condo demand in downtown Calgary is being led by young urbanites tired of the sprawling suburbs that characterize Alberta’s biggest city, McNeill said
“In Calgary, it is a very recent phenomenon that a young professional would not need a car. Only five years ago, this would have been a laughable concept. But urbanization of Calgary’s central core [now] provides a very viable way of living,” McNeill said.
A comparison of the Calgary and Vancouver condo markets reveals some stark difference, according to Mac research.
• New condominiums in Calgary are priced from 15% to 25% less than in Vancouver.
• Calgarians expect more space in their condos. The micro-condos being developed in Vancouver are not being seen in Calgary.
• The City of Calgary is “generally found to provide a friendly approval process. In Vancouver, developers expect a big negotiation with the City and are never sure what zoning they will get.”
