No Provincial Sales Tax

• Cost Savings: Alberta stands out for not having a Provincial Sales Tax (PST), which is a direct cost savings for investors. BC has a 7% PST, and Ontario’s Harmonized Sales Tax (HST) combines the provincial and federal rates to a total of 13%. This means that every real estate transaction and other investment-related purchases (building materials, property management fees, etc.) will cost less in Alberta.
• More Efficient Operations: For commercial real estate investors, running a business or leasing space in Alberta becomes more profitable because the absence of PST reduces the cost of doing business. Investors can pass these savings on to tenants in the form of lower rents or keep more of their profits, improving overall return on investment (ROI).

Growing Economy

• Resource-Based Strength: Alberta is world-renowned for its energy sector, especially oil and gas, which continues to be a major driver of the economy. With the ongoing global demand for energy, Alberta’s economy remains resilient, offering steady growth opportunities, especially in regions connected to this industry.
• Diversification: In addition to its strong energy sector, Alberta’s economy has been diversifying. Industries such as technology, agriculture, logistics, and renewable energy are seeing investment and growth. For example, Calgary is quickly becoming a hub for tech startups, drawing talent and businesses from across the country. This economic diversification means that Alberta is less reliant on oil prices than in the past, providing more stability and new opportunities for real estate investors.
• Job Creation: As Alberta’s economy grows, so does job creation, leading to an influx of workers from other provinces and countries. This creates a demand for housing, whether it’s rental properties or homes for sale, making real estate investment attractive in the long term.

Economic Recovery and Growth Potential

• Post-Pandemic Rebound: Alberta, like other regions, was impacted by the COVID-19 pandemic. However, its economic recovery has been stronger than expected, driven by the energy sector’s resurgence and the province’s broader economic diversification. This recovery is expected to positively impact real estate markets as more jobs are created and economic stability increases.
• Energy Market Stabilization: Alberta’s energy market is stabilizing after several challenging years caused by low oil prices. As global demand for oil and natural gas remains strong, Alberta’s economy benefits, indirectly boosting the housing market, particularly in areas with ties to the oil industry (e.g., Fort McMurray, Edmonton).
• Government Investment: The Alberta government is also investing heavily in infrastructure, technology, and green energy projects, which should further stimulate economic growth and drive real estate development, offering long-term capital appreciation potential for investors.

Strong Infrastructure Development

• Transit and Urban Development: Alberta’s major cities are investing in significant infrastructure improvements. For instance, Calgary’s Green Line LRT (light rail transit) expansion and Edmonton’s Valley Line LRT are set to improve connectivity within these cities, making outlying areas more accessible and boosting property values in those regions.
• New Commercial Projects: Cities like Calgary and Edmonton are also seeing new commercial developments, including office buildings, mixed-use properties, and retail centers. These projects tend to attract more businesses and residents to the area, which increases demand for both commercial and residential real estate.
• Revitalization Projects: In both Edmonton and Calgary, there are numerous urban revitalization initiatives underway. These projects aim to modernize older neighborhoods and improve the appeal of downtown areas, driving up property values and offering investment opportunities in areas that may have been previously overlooked.

Potential for Capital Appreciation

• Undervalued Market: Alberta’s real estate market is considered by many experts to be undervalued relative to its potential. As more people move to the province and the economy grows, property values are expected to increase. For investors, this offers the potential for significant capital appreciation over the medium to long term.
• Long-Term Growth: Given Alberta’s strong fundamentals—economic growth, population growth, and infrastructure development—the potential for property prices to rise steadily over time is high. Investors who enter the market now could see substantial appreciation as demand for housing increases alongside the province’s growth.
• Urban Expansion: Cities like Calgary and Edmonton are expanding, and suburban and exurban areas are becoming more developed. Investing in areas on the outskirts of these cities, where land prices are lower, could yield significant capital gains as these regions become more integrated into the urban landscape.

Population Growth

• Interprovincial Migration: Alberta has become a popular destination for interprovincial migration, particularly from BC and Ontario, as residents of these provinces seek more affordable living conditions and better job prospects. As Alberta’s population continues to grow, the demand for housing naturally increases. This creates a ripe environment for property investors to capitalize on the need for more homes, condos, and rental units.
• International Immigration: Alberta is also a key destination for international immigrants due to its lower cost of living and employment opportunities. Cities like Calgary and Edmonton are becoming increasingly multicultural, and this influx of immigrants creates sustained demand for rental properties and home purchases, supporting a healthy real estate market.

Economic Advantages

• Highest Per Capita GDP in Canada of $ 70,705.00. With average house hold income of 119(before taxes)
• GDP (basic prices) in Alberta reached $336.3B in 2023, 1.5% higher than the year before.11.5% of that is
  contributed by real estate and renting/leasing. 8.1 % is contributed by construction.
• The increase in population has caused a strong demand for housing which creates excellent opportunities for builders and rental property investors.
• In 2023 Rental property vacancy rates have fallen to 2.1% and average two-bedroom rent grew 11% y/y to $1,448, the third fastest growth in Canada (Vaca rate in edm 2.4%, average 2-bedroom rent 1,398; in Calgary vac rate 1.4% and average rent for 2 bed room is 1695). The increase in population has also resulted in demand for over 70,000 housing units in 2023.
• Albertans pay less in overall taxes compared to other Canadians, with no PST, payroll tax or health premium.

Affordability

• The average sold house price in Alberta was $461,153 at the end of 2023, 31% below the Canadian average of $670,025 and almost 50% lower than the least affordable provinces of Ontario and BC.
• At the same time, average weekly earnings in Alberta were $1,290, 5.8% higher than the $1,220 for Canada.
• Ignoring taxes and household size, a typical Canadian would have to dedicate 70% of their monthly earnings to a mortgage when purchasing the average priced home in Q1 2024, compared with 47% for an Albertan.