Kelowna gearing up for real estate boom driven by UBC Okanagan's Downtown Campus expansion

Amid its burgeoning reputation as a city with an incredible quality of life – backed by an astounding 90% of residents endorsing their satisfaction — Kelowna is on the cusp of a significant real estate explosion, thanks to the impending expansion of UBC Okanagan’s Downtown Campus.

Leveraging findings from the Real Estate Investment Network’s “University Effect” report, the campus expansion represents far more than just academic growth. Globally, universities have demonstrated their ability to significantly bolster local economies, enhance property values, and foster innovation hubs.

With every kilometre closer to a university translating to a 1% increase in average house prices and the potential for high-tech job growth in communities with strong academic institutions, this expansion is set to unlock a wealth of opportunities for investors, entrepreneurs, and residents alike.

Population growth and property appreciation fuel economic transformation in Kelowna

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As Kelowna prepares for an anticipated student population spike to 20,000 by 2040, from its current thriving cohort nearing 12,000, the city is set to witness a ripple effect on its economic landscape. UBC Okanagan’s expansion, crowned with architectural highlights like a grand atrium and cutting-edge facilities, including simulated hospital wards and a public art gallery, will serve as a magnet, escalating the already high demand for housing, particularly in downtown Kelowna.

The city’s property market trajectory over the past decade already reveals a potent allure: a 54.1% rise in renter households from 2011 to 2021 (more than double the national average of 21.5%) and a 13.5% population surge from 2016 to 2021, making it one of the fastest growing Census Metropolitan Area in Canada. But it’s not just about population growth; it’s also about property value. Reflecting the broader “university effect” observed in other Canadian metropolises, homes closer to campuses often witness significantly higher appreciation rates. Proximity to downtown-based institutions can lead to a 10-20% rise in property values, making these areas hotspots for investors and homeowners.

The pressing need for student housing is further amplified by a 2020 Statistics Canada report, emphasizing that 1.3 million out of 1.5 million Canadian students depend on the private rental sphere. This demand is particularly evident in Kelowna, where a low vacancy rate of 1.2% underscores the urgency for additional student accommodations. The city’s limited availability of rental spaces further highlights the need for investors and developers to focus on expanding student housing options.

Local businesses are also poised to reap the benefits of a student and faculty influx. Research underscores the pronounced “university effect,” with downtown-located institutions generating significantly higher numbers of licensing deals (80%), patents (123%), income from licensing (222%), and new ventures (71%), compared to their counterparts in rural, suburban, or smaller college towns. Savvy investors are presented with a real estate market brimming with promise and ripe for strategic investment.

Kelowna’s ascent: A rising international star and Canada’s second-best small city

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UBC Okanagan’s expansion further amplifies Kelowna’s global profile, drawing international academic and cultural attention. Resonance Consultancy’s 2022 Best Small Cities Report recognized Kelowna as Canada’s second-best small city, showcasing the city’s dynamic blend of opportunity, lifestyle, and growth. The thriving downtown, enriched by top-ranking shopping options, diverse nightlife highlighted by 10 local breweries, five cideries, five distilleries, and a culinary scene that ranks high compared to other small Canadian cities, positions Kelowna as a burgeoning hotspot.

Kelowna’s vibrant growth is shining through as the city witnesses a surge in innovative architectural designs and tower proposals celebrating its flourishing downtown. With a vision for the future, the city is seamlessly integrating these developments, promising to elevate Kelowna’s skyline and enhance its stature on the global stage.

Redefining real estate horizons, emerging as prime investment hub

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As the city stands on the precipice of this expansive growth, spurred by the expansion of UBC Okanagan, the narrative is clear: Kelowna isn’t just bracing for change — it’s pioneering it. As new infrastructure takes shape, Kelowna isn’t just reshaping a skyline but redefining a future, one where the city shines at its most dynamic and radiant.

It’s clear that people with a keen eye for opportunity, both prospective residents and savvy investors, are eager to tap into Kelowna’s potential. They recognize the opportunity to be part of this transformation from the outset, laying the groundwork for future gains and enriched lifestyles.

As one of Canada’s first intentionally designed vertical neighbourhoods, ONE Varsity facilitates social interaction through its amenities and design in the same way a typical street does in a traditional neighbourhood — only this one is vertical versus horizontal. ONE Varsity’s thoughtfully contemporary architecture creates an urban landmark featuring Smart Studio’s, 1- and 2-bedroom homes, designer-selected colour palettes inspired by its spectacular Okanagan backdrop, lake, city and valley views, and a lobby-level neighbourhood marketplace for everyday essentials.

ONE Varsity’s Smart Spaces are purpose-built to enhance social interaction, a rarity in contemporary high-rises: an appointed lobby complete with bike storage, bike repair, and smart parcel rooms. A 6th-floor backyard equipped with a pool and hot tub area is accentuated by a lounge deck and barbecues; dedicated spaces for furry friends, including indoor dog wash and grooming stations, an outdoor dog run; multipurpose courts for all; and more. Not to mention, the building’s Living Rooms are as neighbourly as they are functional, featuring shared workspaces for professionals and entrepreneurs; an Entertainment Kitchen and Lounge for socializing, a spacious fitness centre with state-of-the-art equipment, and a large Movement Studio to cater to fitness enthusiasts; and for those tech-savvy residents, an E-Gaming Room, and Digital Entertainment Suite.

For more information or to register for updates, visit https://onevarsity.ca/