Monday, January 21, 2013

Ottawa Light Rail to move forward

21 December 2012

CANADA: The Rideau Transit Group consortium has been selected as preferred bidder to design, build, finance and maintain the Confederation Line, a 12•5 km light rail route with 13 stations in Ottawa. The consortium comprises SNC-Lavalin, ACS Infrastructure, EllisDon, Dragados Canada and Veolia Transportation Services. Alstom would supply Citadis cars assembled in Ottawa. The decision was approved by City of Ottawa Council on December 19. According to the city council, the schedule should see construction substantially complete by the end of 2017 and services begin by 2018. The fixed-price contract of C$2•1bn means Ottawa taxpayers will not be financially responsible for cost over-runs related to construction.

For detailed information on Ottawa's plans, please click here

According to research done by Don Campbell at REIN (the Real Estate Investment Network), Light Rail Transit has a definite impact on real estate.  In San Fransisco, their LRT the BART, 1 bedrooms located with a quarter mile rented for 10% more, as two bedrooms, rented for 16% more.  Over a twenty year study, homes located stops on the BART were valued at 38% higher than similar houses located away from a stop.  Similar discoveries were made in Toronto, Chicago, New Jersey and Portland.  The magic number seems to be approximately 500 meters from a stop on the LRT.

For details on their research, click here

For real estate along the Light Rail route, contact your Ottawa real estate source, Bennett Property Shop Realty.

1 comment:

  1. There are some great new condo buildings on the LRT line that would make sense, as they are being built in 2015 and 2016, so the LRT will benefit those (based on Mr Campbell's research).

    For maximum gains, according to Mr Campbell's research, investors should be searching near the future stations for properties. You can buy existing properties, but remember we are talking a 5 year plus window until the LRT is completed.