The Impact of Transportation Changes On Real Estate
Calgary 2010 Update
• Calgary transportation improvements will deliver a 10%–20% enhancement of real estate valuesin the regions most affected. In the future, these areas will outperform the rest. If the market goes up everywhere, these areas will increase by about 10%–20% more. If the Alberta values drop, these will drop by 10%–20% less.
• With the completion of the Ring Road and the extension of the LRT, real estate prices in key neighbourhoods will increase more quickly than other regions of the city due to improved transportation linkages. Improved accessibility drives real estate demand.
• Values in older and more established neighbourhoods are impacted more significantly than in newer developments.
• In studies of the effect of transportation improvements on real estate in other jurisdictions around the world, it was found that real estate value increases occur for properties located within 800 meters of stations on the new transportation and 800 meters from exits on new major highway improvements.
• The areas that will be most significantly impacted by transportation upgrades are divided in to the ‘Three Tiers of Impact’
First Tier, which will witness the most positive effects from the combined ring road and LRT improvements: NE — Saddle Ridge, Martindale, Falconridge, Taradale, Castleridge; NW — Rocky Ridge, Tuscany, Scenic Acres, Ranchlands, Silver Springs, Hawkwood.
Second Tier, which will feel positive impacts from either the LRT or the ring road: NE —, Coral Springs, Temple, Montery Park, Pineridge, Abbeydale, Applewood Park, Marlborough Park, Penbrook Meadows; NW — Bowness, Greenwood, Valley Ridge. SE — Chapparal, McKenzie Lake, Cranston, Auburn Bay, Mahogany, Copperfield, and Sundance
Third Tier regions will feel the ripple effect outward from the main impact areas; these include Cochrane, Balzac and Airdrie, as well as new developments near the Ring Road.
New in the 2010 Addition:
The failure of the Province to reach a deal with the Tsuu T’ina nation has resulted in an update to our report as different communities will now be impacted by the southwest portion of the ring road running entirely through city land.
The report also includes more detailed information on the addition of the West LRT Line and propose future extensions and expansions to the Calgary LRT network.
Download the full report here.