Calgary has 3 of Canada's Top 100 Investment Neighbourhoods

Posted by Justin Havre. on Monday, October 19th, 2015 at 3:01pm.

Canada’s Top 100 neighbourhoods include three in Calgary.

Cranston, Midnapore and for the first time, Falconridge have each been included in a list of our nation’s top 100 best real estate investment bets for 2016.

The list of residential markets predicted to lead growth in the coming year is compiled annually by Canadian Real Estate Wealth Magazine.  Neighbourhoods considered strong investment spots are identified by industry analysts, based on several key criteria supplied by The Teranet – National Bank House Price Index.

Data from across Canada is examined, including year over year property value appreciation, rental revenues and demographic information such as population growth in each neighbourhood.

Price increases over a 12-month period and the previous five years is taken into consideration, and population growth from August of the previous year to August of the current year is looked at.  Analysists also consider predictions for job creation in the area, transit growth and infrastructure development.

Our Top 3

Falconridge, in Calgary’s North East quadrant, is north of McKnight Blvd with a population of 10,840 residents.  City of Calgary projections for population growth in Falconridge between 2015 and 2042 call for little change, however, home values in the community have grown by 17.1% over the previous year. Infrastructure improvements in the area include the completion of Metis Trail and Stoney Trail to the North East. According to City of Calgary statistics, just 53% of homes are owner occupied in Falconridge.  Therefore, there is an excellent selection of revenue properties with a 2015 median price of just $302,000, well below the city average.

Cranston is a large community in the South East.  With the completion of the south eastern portion of Stoney Trail, the new interchange from McKenzie Lake across Stoney to Cranston and the opening of the new South Health Campus, local infrastructure in Cranston has improved immensely. The typical single-family home in Cranston is new on a larger than average lot with lots of above-grade square footage, providing excellent value. The population is predicted to grow by 38% by 2042.

Midnapore is a mixed-use community with a man-made lake just west of Macleod Trail on the south side of Fish Creek Provincial Park.  With the Fish Creek LRT Station nearby, Midnapore is building on the city’s transit densification plan with condominiums ripe for the picking by investors.  The Macleod Trail corridor has been luring more corporate offices away from downtown Calgary with more amenities and better rent. Money Sense Magazine predicted in March 2015 that Midnapore’s undervalued real estate would appreciate by 34% by 2020.  With the current economic conditions that may or may not come to pass.

Twelve communities from across Alberta were included in this year’s poll, the fourth such annual list compiled by the magazine.  Airdrie also made the top 12 in Alberta for the second year in a row. Alberta fell from second to third in the national rankings, but still holds a key market position just behind Ontario and B.C.

Vernon Jones, editor of Canadian Real Estate Wealth Magazine, said in an industry press release that several Alberta neighbourhoods were dropped from the list but new ones were added. The province continues to provide good investment opportunities despite Alberta’ sagging economy, a surprise to them Jones admitted.

The results are published in the Nov/Dec issue of the magazine and identify the property types in each residential market that investors should look at when considering short and long-term increases.

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