PROJECTED DEVELOPMENT COSTS FOR 2020

Building a budget for your upcoming real estate project

Understanding the development costs and trends

The development costs for an upcoming real estate project includes more than labour and material costs. For instance, development costs can be affected by global and local economic conditions, market trends, and advances in building materials, practices, and approaches.

Entering into 2020, the real estate market saw low vacancies and strong demand for housing activity. In the Greater Toronto Area, sales activity is expected to remain strong. Meanwhile, in Vancouver, there is predicted to be an increase in demand for residential land. Furthermore, in Vancouver, commercial real estate investment demand is expected to remain high.

Private Sector Development Costs

The Altus Group has conducted research on the development costs for selected areas across Canada. These projected numbers, listed in the table below, can help developers build their initial budget for their upcoming projects.

Above all, the most important information to highlight from this report is that development costs range greatly across Canada. Furthermore, the costs can vary based on the type of building. Lastly, it appears the two regions with the projected highest costs in the private sector per square foot are Vancouver and the Greater Toronto Area.

development costs breakdown

Source: Atlus Group, 2020 Canadian Cost Guide

You can view the full report here: https://www.altusgroup.com/services/reports/2020-canadian-cost-guide/

For clarification on any of the above topics or to discuss them more in detail, please reach out to us at info@varinggroup.com or by phone at 604.565.3478


Share your thoughts.

 

CONTACT US
+1-604-565-DIRT (3478)
info@varinggroup.com

SEND A MESSAGE

JOE VARING  PERSONAL REAL ESTATE CORPORATION LTD.

HOMELIFE GLENAYRE REALTY COMPANY LTD.

#360 3033 Immel Street, Abbotsford, BC Canada V2S 6S2
We-Sell-Dirt_Varing-Marketing-Group

THINKING OF SELLING?
Send us your property's address and we'll share our thoughts.

Please enter your name.
Please enter a message.

2020 VARING MAGAZINE
AVAILABLE NOW