Ever wondered how Alberta’s booming energy sector influences Calgary’s real estate market? If you’re considering buying, selling, or investing in Calgary properties, understanding this dynamic is crucial. In this blog, we’ll delve into Alberta’s economic forecast, the pivotal role of the energy industry, and how these factors shape Calgary’s real estate landscape in 2025.

Alberta’s Economic Landscape in 2025

Economic Growth Projections

Alberta’s economy is projected to experience a real GDP growth of 1.9% in 2025, slightly down from previous years but still outperforming many other provinces in Canada. This growth is primarily driven by the energy sector, which remains a cornerstone of the province’s economic strength.

Population Trends

The province’s population is expected to grow by 2.4% in 2025, a slight decrease from the 4.4% surge in 2024. This slower growth is attributed to a reduction in temporary residents and a deceleration in migration rates.

The Energy Sector: Alberta’s Economic Backbone

Oil and Gas Industry

Alberta’s oil and gas sector continues to be a significant contributor to its economy. Recent developments, such as the potential agreement for a new oil export pipeline, highlight the ongoing importance of this industry. The proposed pipeline could carry up to 1 million barrels per day, contingent on environmental commitments and federal approval.

Renewable Energy Initiatives

While traditional energy sources dominate, Alberta is also investing in renewable energy projects. However, recent policies have introduced restrictions on renewable energy developments on prime agricultural land, aiming to preserve viewscapes and agricultural viability.

Calgary Real Estate: A Market Shaped by Energy

Market Resilience

Calgary’s real estate market has demonstrated resilience, with benchmark home prices increasing by approximately 5.8% year-over-year as of July 2025, surpassing the national average. This growth is attributed to factors such as strong migration, low inventory, and sustained demand.

Housing Demand and Supply

Despite a slight slowdown in migration, housing demand remains robust, supported by past gains in population and employment. However, increased competition from new home construction and heightened economic uncertainty may limit further growth in resale activity.

Energy Sector’s Influence on Real Estate

Employment and Income Growth

The energy sector’s expansion leads to job creation and higher incomes, increasing the demand for housing in Calgary. This influx of workers and professionals contributes to the city’s population growth, further driving the real estate market.

Infrastructure Development

Investments in energy infrastructure, such as the proposed pipeline projects, enhance the city’s connectivity and appeal to potential homeowners and investors. Improved infrastructure supports economic growth and increases the desirability of Calgary as a place to live and invest.

Navigating the Calgary Real Estate Market in 2025

For Buyers

• Research Market Trends: Stay informed about current market conditions and property values.

• Evaluate Long-Term Value: Consider properties in areas with potential for future growth due to energy sector developments.

• Consult Real Estate Experts: Engage with local real estate professionals to gain insights and guidance.

For Sellers

• Highlight Property Features: Emphasize aspects that align with current market demands, such as energy-efficient homes.

• Strategic Pricing: Set competitive prices based on market analysis to attract potential buyers.

• Market Effectively: Utilize various platforms and strategies to reach a broader audience.

For Investors

• Assess Market Dynamics: Understand the interplay between the energy sector and real estate market trends.

• Diversify Investments: Consider a mix of residential, commercial, and industrial properties.

• Monitor Policy Changes: Stay updated on government policies affecting the energy sector and real estate market.

Calgary: A City Energized by Growth

Calgary, often referred to as the “Energy Capital of Canada,” continues to thrive due to its strong economic foundations in the energy sector. The city’s skyline, characterized by modern architecture and expansive views, reflects its dynamic growth and prosperity. Calgary’s blend of urban amenities and proximity to natural landscapes makes it an attractive destination for residents and investors alike.

What You Stand to Gain

By understanding the intricate relationship between Alberta’s energy sector and Calgary’s real estate market, you are better equipped to make informed decisions. Whether you’re looking to buy, sell, or invest, recognizing these dynamics can lead to strategic choices that align with market trends and economic forecasts.