New York. Paris. Rome. Calgary? Although not normally lumped in with the great cities of the world, according to a recent report, when it comes to return on property investment, Calgary is the greatest of them all.
The 2012 IPD Global Cities Report, which compares four property types (retail, office, apartment, industrial) across 60 international cities, listed Calgary as the very best city in the world to invest in real estate.
According to the report, Calgary’s total return in the fourth quarter of 2011 increased by 21.6, up from just 10.3 per cent in the first quarter, and 8.7 per cent in 2010. The increase placed the city tops amongst those markets included in the survey, helped by “Alberta’s energy boom”.
Other Canadian cities on the list – Vancouver, Montreal and Toronto – ranked 8th, 9th, and 10th, respectively, while global cities that performed well on returns on property investments included San Diego, Portland, and Seattle.
The report from IPD is in keeping with another recently report from the Conference Board of Canada, which predicts Calgary and Edmonton are forecast to be the fastest growing economies in Canada over the next four years.
“Energy-related investment in Alberta is expected to stay vibrant throughout the next four years. For instance, about $29-billion worth of energy-related projects are now underway in the province, and nearly $86-billion worth of projects are proposed for the future,” said Mario Lefebvre, director, Centre for Municipal Studies, for the board.
Economic growth is expected to come in at 3.8 per cent in Calgary in 2012. For the rest of the forecast period (2013 to 2016), Calgary’s average annual real GDP growth is expected to be 3.7 per cent, while Edmonton’s economy is forecast to average growth of 3.5 per cent annually.
“Other Western cities, including Saskatoon, Regina and Vancouver, are expected to grow strongly in the years to come,” said Lefebvre. “Toronto’s economic performance is expected
to rival that of its high-flying western counterparts, and manufacturing sectors are showing signs of revival in Montreal, Hamilton, Halifax and Winnipeg over the next few years. However, growth in cities such as Ottawa, Quebec City and Victoria will be affected by ongoing public sector restraint.”
The Conference Board of Canada’s Metropolitan Outlook, published quarterly, provides economic Insights into 28 Canadian Census Metropolitan Areas.