The Northern Market

The economy in northern Canada is multi-faceted and is enjoying significant growth.

The Northern Economy

Northwest Territories

• The economy in the Northwest Territories is driven by oil and gas exploration and production, diamond and gold mining, government administration, transportation and tourism.
• The Northwest Territories has the highest per capita GDP in Canada. GDP grew 8.8% in 2000 and by 20% in 2001.

Nunavut

• Nunavut’s economy is predominantly driven by government administration.
• Nunavut’s per capita GDP is higher than the Canadian average at $33,593, and is forecast to grow by more than 4% per annum from 2000-2004 and by 3.3% from 2005 to 2009.

The Northern Canadian Real Estate Market

• Rapid economic and population growth have contributed to a serious shortage of housing in Canada’s north.
• The Governments of both the Northwest Territories and Nunavut have identified the shortage of affordable housing as a serious concern and a top government priority.
• The real estate market in northern Canada is characterized by low vacancy rates, housing shortages and high rental rates as a result of increasing industrial development and economic activity throughout the region.
• Shortage of housing has resulted in government and large corporations leasing rental accommodations and sub-letting to its employees in order to secure adequate housing for its employees.
• As a result, the majority of NPR’s leases are to government and large corporations. These dynamics provide a stable, high quality tenant base with high lease renewal rates.