Building activity in Alberta's two largest urban centres went in opposite directions in 2010, with Edmonton building permit values increasing over the previous years and Calgary building permit values falling.
Edmonton permit values rose almost 11 per cent in 2010 to reach $2.73 billion, up roughly $270 million from 2009 on the strength of more residential construction.
Calgary, on the other hand, saw building permit values fall in 2010 by about 20 per cent, from $3.65 billion in 2009 to $2.92 billion in 2010.
Still, Calgary officials aren't exactly pushing the panic button.
"Values are down, but $2.92 billion is still a healthy level of activity. To put it in perspective, consider that the average value between 2001 and 2005 - the period leading up to the record years - was $2.51 billion," said David Watson, general manager of planning, development and assessment for the City of Calgary.
Of Calgary's total $2.92 billion in permit values for 2010, residential values were up 18 per cent year-over-year ($1.7 billion versus $1.44 billion in 2009) while non-residential values were down 45 per cent ($1.22 billion versus $2.21 billion in 2009).
"Essentially what we've seen year-over-year is a reduction in stimulus spending," said Watson. "This is reflected most notably in the institutional sector with new projects down 83 per cent to $152 million from $901 million in 2009."
In Edmonton, residential permit totals were also up over 2009, jumping by about $450 million, or by over 34 per cent, to $1.76 billion.
While Edmonton's permit values predictably trailed Calgary's at the end of the year, the capital city actually ran even with southern Alberta's Prairie metropolis at times during 2010.
from Western Investor, February 2011
