Edmonton Real Estate Prices Driven by Transportation Improvements
Edmonton Real Estate Prices Driven by Transportation Improvements

Cutting Edge Research Inc. has just completed our detailed research into the effects of transportation improvements on the prices of real estate in markets all across North America.

Our methodology was to study current and past major transportation improvements (Light Rail, Major Highway improvements and commuter rail) in cities across North America to determine whether these improvements had any direct and measurable impact on real estate values.

We then took this data and used it to analyze select cities and towns. In this edition, we took a special focus on the Edmonton real estate market, located in Northern Alberta. Here is a quick summary of our findings:

  • Edmonton transportation improvements will deliver a 10%–20% enhancement of real estate values in 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 Edmonton values drop, these will drop by 10%–20% less.
  • With the completion of the Anthony Henday Ring Road and the extension of the LRT, real estate prices in key neighbourhoods (listed below) 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 metres of stations on the new transportation and 800 metres from exits on new major highway improvements.

The areas that will be most significantly impacted by transportation upgrades are divided in to the ‘Four Tiers of Impact’

First Tier: areas which will witness the most positive impact of the transportation improvements, most of which are located on the 111th street corridor being. This region will enjoy the twin impact of the Ring Road access and LRT expansion: Blue Quill, Ermineskin, Sky Rattler, Twin Brooks, Park Allen, McKernan, Belgravia

Second Tier: areas which will also feel a strong positive impact with one of the major improvements significantly increasing long term demand: South Mill Woods, Pleasant View, Lendrum; West End including, Jamieson, Glastonbury, Aldergrove, Thorncliff & Belmead.

Third Tier: areas which will feel the impact in years to come once the Northern Section of the Ring Road is designed and completed: (NW) Castledowns neighbourhoods, Lago Lindo; (NE) Miller, Casselman, Kirkness, Fraser, Rundle Heights, Abbotsfield

Fourth Tier: Regions which will feel the ripple effect outward from the main impact areas. These include St. Albert, Ft. Saskatchewan, Devon, and Sherwood Park

There are negative effects (nuisance, property crime, noise, increased traffic, etc.) on properties located in the immediate vicinity (100 meters) of many stations but this does not have a negative effect on the price increases.

To download the complete research reports on Edmonton, Vancouver or Calgary visit this link

The Gateway Effect – Transportation’s Impact on Real Estate Values

Un-biased research is at the heart of EVERY quality real estate investment.

Edmonton Real Estate Prices Driven by Transportation Improvements was last modified: April 9th, 2010 by admin
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