Calgary’s construction industry kicks off year with $1.7B in projects

Calgary’s construction and development industry is celebrating a strong start for the first four months of 2023.

While only 4,846 building permits were issued between January and April (a 14 per cent decrease from the same period last year), total construction value saw an increase of six per cent, year-over-year, to $1.17 billion so far in 2023.

“Our construction value in 2023 demonstrates the confidence there is to invest in our city,” said Stuart Dalgleish, general manager of planning and development services for the city.

“With the construction industry contributing approximately 8.6 per cent to Calgary’s GDP, the number of projects being built is very healthy for our city, our economy and the future of Calgary.”

But the success didn’t come without road bumps.

The city said 1,327 around permit applications were submitted for commercial, industrial, institutional and multi-residential projects from January to April, down eight per cent from 1,440 last year. Around 2,865 permit applications were submitted for residential improvement projects, a seven per cent decrease from the same period last year.

New home construction saw a 27 per cent decrease in permit applications: only 1,526 applications for single and semi-detached homes were submitted in the first four months of this year compared with the 2,095 applications this time last year.

“A decrease in the overall permit volume applications for residential home improvement projects is expected as Calgarians deal with increasing interest rates and cost of living,” Dagleish said.

However, according to the city, apartment building construction was valued at $293 million in Q1 2023 compared with $109 million in Q1 2022, a 170 per cent increase.

The city hopes initiatives like the Downtown Development Incentive Program, which will give developers money to convert empty office buildings into residential units, will help create more housing diversity and revitalize the city’s downtown core. The conversions will add more amenities and services downtown, the city said.

“With existing housing supply levels remaining low and population growth in Calgary remaining steady, enabling access to housing supply remains our top priority,” Dagleish added.

“Though our total permit application volumes for single and semi-detached homes have decreased in the first four months of the year, construction value is higher than pre-pandemic levels.”

But the city noted that despite supply shortages and procurement challenges, many notable projects were completed at the start of 2023.

These include:

• Oliver Tower, a 32-storey residential complex featuring 403 housing units, located in the community of Beltline and valued at $95.6 million.
• Barlow Crossing Building, a new 244,000-square-foot warehouse, located in South Foothills and valued at $25 million.
• Cedarglen Harvest Hills, a four-storey, residential low-rise building, featuring 120 housing units, located in the community of Harvest Hills and valued at $21.1 million.
• Seton 105, a new low-rise apartment building in the community of Seton, featuring 103 housing units and valued at $15.3 million.
• The Capella Building, a luxury mixed-use residential condo development located in the University District with certified LEED-ND Platinum rating valued at $14.4 million.
• The Bayside, a 46,000-square-foot school serving kindergarten to grade four students in the community of Auburn Bay, valued at $13.4 million.
• Fish Creek Exchange, a low-rise apartment complex that will provide 60 apartment units in the community of Shawnee Slopes, valued at $13.1 million.
• Centaur Subaru, a three-storey car dealership serving Subaru customers in the community of Parkhill, valued at $12 million.
• Enright 7257, an office and warehouse commercial development located in the community of Great Plains valued at $11.6 million.
• Hillhurst 19+2, a 51-unit, five-storey mixed-used development, offering both housing and retail options to the community of West Hillhurst, valued at $10.1 million.