Ottawa multi-family market strong: Colliers

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Despite high rental vacancy rates throughout 2014, Ottawa has one of the most coveted multi-family markets in the country, according to a new report issued this week by Colliers International.

The report found the total dollar value of multi-family transactions rose 33 per cent last year, all while the overall dollar value of all commercial real estate transactions fell 11 per cent. The number of multi-family transactions was up almost 62 per cent.

Colliers’ director of valuation and advisory services, Oliver Tighe, said stable rental and vacancy rates help make the city’s multi-family market one of the most sought-after in Canada.

“Owners are attracted to the stability and lower relative price of apartment buildings in Ottawa versus other major markets,” Mr. Tighe said in a statement.

The Colliers report found a trend away from private owners toward more national owners. It also found the sale price per door – the price of a multi-family asset divided by the number of livable units – has increased by five per cent across the country.

Looking forward to 2015, Colliers predicts little change from last year except in Alberta, where it expects the real estate market to be affected by fluctuations in the cost of oil.