Apartment vacancies in the Ottawa market are expected to fall in 2012 amid LRT planning and the Department of National Defence move to Kanata in the next few years.
A report by Rock Advisors Inc., an apartment brokerage firm based in Burlington, Ont., forecasts vacancies to fall and rents to increase in the coming year.
“The presence of international diplomats and many other officials visiting the city for a few months out of the year have given the city a big market in furnished apartments, as well as short-term rentals. When the world looks to invest, Ottawa is a standout,” the report reads.
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Ottawa has one of the highest apartment concentrations in the province, with 6.76 units per 100 people, the report states. However, vacancy rates have been below two per cent since 2006 and rents have been increasing faster than the provincial rate since 2009.
The capital has added 11 new apartment buildings to rental stock since 2007, the report added. Supply is expected to increase in the coming year (the report did not specify why) and the cap rate will be about 4.75 per cent to 5.75 per cent.