Real Estate near Rogers Place should gain value

If you have a home or condo close by Roger’s Place, put a check in the win column.  You’re about to score some real estate points.

According to a new report issued by the Real Estate Investment Network (REIN), home values are positively impacted when in the vicinity of a newly-constructed arena or sports stadium.  REIN is a Vancouver-based organization which provides market analysis and neighbourhood research for real estate investors.

One of the principle highlights of REIN’s recent findings indicates that homes in neighbourhoods where there is a new facility or even a proposed new facility, can increase in value from 3 to 15 percent.  The variable percentage is due to the type of dwelling, accessibility to parking and the actual distance to the sporting facility.

Don Campbell, a REIN senior analyst, said this new report should be of interest in Alberta where Rogers Place is currently under construction in Edmonton and consideration is being given to a huge sports development for the West Village in Calgary.  The news confirms the prediction of University of Alberta economist Brad Humphreys who predicted real estate would experience an economic boost of hundreds of millions of dollars within a 1.6 km radius of the project

The good and the bad

Increased real estate values are just one positive impact of developments such as Rogers Place.  The preliminary information indicates that residential real estate within a five-kilometre circle around a stadium or arena is affected.  Those properties which can realize the most gain have other factors in the equation, such as attractive architecture, beautiful public spaces, retail offerings, entertainment and restaurant space. The report also examines the negative ripple effects that happen post-construction, such as increased property taxes, necessitated by the costs of the stadium or arena.  Values can also be negativity affected by pedestrian and traffic flow around a facility, creating increased noise and congestion.

 A complete picture will be provided during Edmonton’s Real Estate Investing Forum. 

The REIN report has explicit detail on potential increased housing values. For example, real estate values can increase approximately 1.75% for every 500 metres closer you get to the facility from that magic 5 km perimeter.  If a stadium or arena is in a suburban setting and not in close proximity to any other hub or development, real estate increases are not as dramatic as they are when the facility is in a Central Business District.  Leaving those living in a 5 km radius around Rogers Place in good shape. 

About Roger’s Place

Roger’s Place, which is often confused with Roger’s Arena in Vancouver or Roger’s Centre in Toronto, is currently under construction in downtown Edmonton between 101 St and 104 St, and 104 Ave and 105 Ave.  Ground was broken in March 2014 and should be ready for the 2016-17 NHL hockey season.  The capacity of the new multi-use facility will be 18,641 for hockey games and as many as 20,734 for concerts.  It will replace the current Rexall Place.  It was announced that the spin-off development in the area surrounding Roger’s Place will be in excess of $2.5 billion.  That development includes 1,300 new condo units in close proximity to the area, including two condo towers adjacent the facility and three nearby residential towers to be developed by an Ontario company.