As long as the price of oil remains as high as it is now, Edmonton is likely to remain a hot commodity. The oil sands region in Alberta contains an enormous amount of oil, and being that it comes from a friendly, neighboring country, there will continue to be huge demand for their oil. With the amount of money flowing into the Edmonton economy, people there can afford to pay a premium for their living expenses. With that in mind it’s possible that the real estate values could continue their rise for awhile longer.
On the other hand if the price of oil were to drop off significantly, Edmonton, and Alberta as a whole, will be hurt dramatically. Edmonton has done a good job of working to diversify their economy, but the fact remains that oil is the number one industry in the area. It is also possible that environmental regulations could have an impact on the oil sands region. It is no secret that the oil sands produce an enormous amount of pollutants, and it is possible that restrictions could be placed on the production which could prove very costly for the oil producers and the area’s economy. Let’s also not forget that real estate values in the area have skyrocketed over the past few years, and history tells us what goes up, usually comes down. Read our article Resource Driven Real Estate Booms and Busts for some more insight.
Overseaspropertymall.com just did an interesting blog post on the subject. In their post, they looked at both sides of the argument and offered some insight as well. I would recommend that you check it out if you are curious about investing in Edmonton real estate.
Labels: Edmonton, international, real estate
