Residential land values are buzzing in ottowa

Ottowa’s two biggest property transactions in 2011 were for two big-scale retirement developments and “while that asset class is likely to remain visible as the population ages,” Nico Zentil, a senior sales associate at CB Richard Ellis told OPP, “it's residential development land that's now grabbing investors' attention.”

"There is a lot of buzz in that sector right now," he says. Residential land typically makes up 10% to 15% of CBRE’s business in the Ottowa district, but in 2011 this soared to 30% says Zentil.

With a limited supply of quality assets on the market, investors are increasingly looking for development opportunities, Zentil adds. "It's not only tough to buy real estate today, (but) the stuff you can get your hands on is usually so heavily pursued that the returns have been beaten down. We expect a lot of groups, particularly on the institutional side, to be more active in the residential development market."

Overall real estate investment levels in Ottawa have averaged approximately $1 billion over the past decade prior to spiking at more than $1.7 billion in 2008 and then plunging to around the $800-million mark in 2008 and 2009, according to data from the international agency group Cushman & Wakefield.

Source: OPP.org.uk