According to the 2014 Multi-Family Real Estate Report from Colliers International, the total number of sales transactions in Ottawa’s multi-family sector grew 61.54 per cent last year, making it one of the most attractive rental markets in Canada. At the same time, the total dollar value of multi-family asset transactions rose 33 per cent, year-over-year.
“The multi-family asset class in Ottawa remains one of the most sought-after of the major Canadian markets,” says Oliver Tighe, Director of the Valuation and Advisory Services and Multi-Family Practice Groups for Colliers International in Ottawa. “This is due to very stable rental and vacancy rates. Owners are attracted to the stability and lower relative price of apartment buildings in Ottawa versus other major markets.”
The report, which covers data for eight Canadian cities, including Calgary, Edmonton, Montreal, Ottawa, Toronto, Vancouver and Victoria, noted that rental vacancy rates stayed relatively stable across Canada. Ottawa saw vacancy rates slip from 2.9 to 2.6 per cent from 2013 to 2014.
In terms of average rental rates, Calgary and Edmonton witnessed the largest changes, reporting increases of 7.61 and 6.99 per cent, respectively. Ottawa’s average rental rates, on the other hand, saw very little change, rising only 0.88 per cent, the smallest increase of all eight cities.
Within Ottawa, the largest multi-family sales of 2014 were located at 1917 & 191 St. Laurent Blvd. ($64.95-million) and 1025 Canadian Shield Ave. ($47.62-million).
To download the full multi-family real estate report, visit www.collierscanada.com/.