Regina residential and retail sectors flourishing

Despite a lagging economy, Regina’s residential and retail sectors are doing quite well.

“We continue to be a bright spot in the economy,” Mayor Michael Fougere said.

While Saskatoon struggles with a residential vacancy rate around 10 per cent, Regina is sitting at 5.6 per cent.

“They were a lot of mining up there,” Michael Kelsey, a Colliers Regina broker, said. “We are a bit of a government town so we’re more stable in that regard. So I think they grow quicker, but as things slowed a little I think there was a little more fallout.”

Residential construction projects in Regina were also up to more than $300 million, compared to $220 million in 2015.

“One of the biggest indicators of economic growth is how is your housing industry doing, and when we see that it’s growing sort of counterintuitively to what’s happening in the rest of the country and other parts of the province even, we know we’re doing things very well here,” Fougere said.

According to the latest Colliers report, Regina’s retail market is looking rather rosy as well, with a decreasing vacancy rate that’s under three per cent.

“We’re seeing new land coming on-stream soon, so we may see the vacancy rates climb a little as more stuff gets developed,” Kelsey said. “But there’s pent up demand so the market is very strong.”

The mayor said a diversified economy that includes manufacturing, farming and even IT has helped keep the city strong.

“We have a stronger economy than just oil and gas. That’s a good thing to have a diversified economy. It shows inherent strength even though other parts of the country are being hurt because of low oil prices,” Fougere explained. “We’re weathering that storm fairly well.”

Colliers expects 2017 to be strong again for Regina retail, with the expected development of two liquor stores and multiple large scale developments that are already in progress.

“I think as bad as it’s going to be, we’re there, and it hasn’t been bad, and we’re going to continue to rise now, would be my opinion,” Kelsey said.