Alberta is one of the most important provinces to the Canadian economy and culture, with major cities and powerful industries. It is the heart of Canada’s energy industry, a massively important agricultural hub filled with abundant natural resources. Alberta has ample space, with a population density that ranks sixth amongst provinces in Canada, and with great farmland, stunning natural settings, and undeveloped areas, it is a huge opportunity for buyers seeking to purchase land.
Land in Alberta is comparably affordable and provides an abundance of great options. Purchasing land in Alberta gives you access to an investment opportunity that seems likely to appreciate. Within the past five years, land values in Alberta have climbed steadily, and there is no reason to believe that this will not continue.
Whether you are looking to purchase land as a hands-off investment, build a house, or monetize your purchase by farming or ranching, there are an array of options available for Alberta buyers. Let’s look at a breakdown of purchasing land in Alberta.
Why Buy Land in Alberta
While the price of land in Calgary or Edmonton will be high because they are highly commercialized and developed areas, most of Alberta is filled with undeveloped, open spaces. Much of that space is used for farmland, a small amount is used for cities and towns, and a significant portion of the state is untouched forest or grassland. That means a huge amount of space is available to be purchased in Alberta, which contributes to how affordable land is.
According to Statistics Canada, the median value of an acre of land for farmlands and buildings in Alberta is $3,008. This ranks sixth in the nation amongst provinces and below the Canadian cumulative national average. While it is significantly more expensive than places like Manitoba and Saskatchewan, the land value has appreciated much more dramatically in Alberta than in more affordable provinces, which means it’ll likely yield a higher long-term payout.
Even with an abundance of options on the market, buyers value land in Alberta more than they ever have. In just the past five years, the value per acre in Alberta has surged by almost $700. This is a dramatic increase of over 25%, signifying that land in Alberta could soon come at a premium. This trend doesn’t seem likely to stop, and as the population of the state continues to surge, it is likely that land values will only increase.
Important Details About Buying Land in Alberta
No plot of land will be exactly alike, and the opportunities buyers will get from purchasing them will be different. One industry that someone purchasing land in Alberta can buy into will be the agriculture industry. Alberta is responsible for 31% of the total farm area in Canada, and they account for 21% of the farms in Canada. Alberta’s agriculture industry contributes just under $10 billion to the province’s GDP.
If you are looking to get in on the farm industry in Alberta, there are a lot of opportunities to do so through land purchasing. However, that isn’t the only option for buying land in Alberta. Many are purchasing property in the province and watching its value rise by virtue of the land value in the state consistently climbing. This is a hands-off form of investment, as, unlike purchasing a home or building, there isn’t significant upkeep required on a parcel of land.
There are numerous great areas to buy land in Alberta. Land in a city or town is typically significantly more expensive than land in a rural, undeveloped environment, like a forest or field. That means the further removed you get from Calgary, Edmonton, and Red Deer, the higher the likelihood that you’ll be able to purchase a large swathe of land for an affordable price.
Buying land in Alberta appears to be a sound investment. In a state filled with economic opportunity, an abundance of natural beauty, and a huge amount of open space, there is a ton of potential for buyers to find great deals on land. Whether you are looking for an investment, a space to build a home or even farmland, Alberta has plenty of top-notch options.
