Penticton’s Residential and Tourism Real Estate Market: Trends and New Developments in the Area
Penticton, which sits between Okanagan and Skaha Lakes, is offering new opportunities for real estate investment. Its semi-arid climate, vibrant tourism, and diversified economy contribute to its appeal. Additionally, the city’s population has grown significantly, fueling housing demand, which may contribute to long-term price appreciation.
Why Penticton?
Strategic Location & Lifestyle
Penticton’s unique position between two lakes offers year-round recreational opportunities. The warm, dry summers and mild winters attract a diverse population, including retirees, families, and remote workers. The region’s wine tourism, with over 200 wineries, drives short-stay rentals and hospitality businesses.
Market Fundamentals
In 2021, the Penticton census agglomeration (CA) population was 47,380, representing an 8.8% increase since 2016. The City of Penticton proper had 36,885 residents according to the 2021 Census, a 9.3% increase from 33,761 in 2016. Primary rental vacancy in Penticton remains critically low at 1.2%, indicating a demand for rentals. Tourism is a major driver in the area; short‑term accommodation occupancy, including hotel stays, surges to over 90% during peak summer months, driven by lake‑ and wine‑related tourism.
Development Opportunities in the Area
Two notable development projects in Penticton, Nikola and Sokana Riverview, offer distinct investment opportunities.
Nikola: Urban Innovation Meets Wellness-Centric Living
Nikola is the inaugural residential building in the master-planned Innovation District, developed by Tien Sher Group and Stryke Group. This six-story building offers units ranging from studios to three-bedroom configurations, with prices starting at $279,000. Occupancy is projected for December 2027.
The Innovation District spans ten acres and will feature over 1,500 homes, restaurants, cafes, medical services, clinics, offices, childcare, and more. Nikola’s amenities are designed to enhance community living and personal well-being. Residents will enjoy a rooftop deck with lake views, a fitness center, a yoga studio, co-working spaces, a podcast room, and a dry infrared sauna. Additional features include a bike wash/repair room, e-bike charging stations, and a community bike-sharing program. The development also prioritizes sustainable transportation options, encouraging residents to embrace a car-free lifestyle.
Nikola’s interiors, designed by Area3, feature spacious balconies, expansive double-glazed windows, energy-efficient appliances, and air conditioning throughout. Contemporary kitchens boast sleek cabinetry, quartz countertops, and state-of-the-art Samsung appliances. Residents can choose from two light-hued, Okanagan-inspired colour palettes.
Sokana Riverview: Resort-Inspired Living on the Channel
Sokana Riverview, developed by Kerkhoff Develop-Build, is the final phase of the Sokana project, following the successful sell-out of the Boardwalk building. This six-story wood-framed building offers one, two, and three-bedroom homes, with prices starting at $400,000. Occupancy is projected for June 2028.
Sokana’s architecture, inspired by the South Okanagan’s temperate climate and surrounding bluffs, features warm wood tones and oversized windows to maximize natural light and views. The interiors offer modern, chef-inspired kitchens with large islands, wood-grain two-toned cabinetry, contemporary tile backsplashes, Samsung appliances, and polished quartz countertops. Private patios with glass panelling provide stunning views of the iconic channel.
Residents will enjoy resort-style amenities, including a landscaped courtyard with a pool and hot tub, an outdoor games area, green space for yoga or relaxation, an al fresco dining pavilion with a kitchen, and lounge areas. Both the Boardwalk and Riverview buildings will have their own fitness facilities. Sokana’s location offers easy access to Riverside Village Mall, the Penticton Channel, and the Naramata Bench’s award-winning wineries.
Comparison Highlights: Nikola vs. Sokana Riverview
| Feature | Nikola | Sokana Riverview |
|---|---|---|
| Developer | Tien Sher Group & Stryke Group | Kerkhoff Develop‑Build |
| Location | 1704 Government St, Innovation District (central) | 270 Riverside Dr, riverfront near downtown |
| Occupancy Date | December 2027 | June 2028 |
| Suite Sizes | 390–1,055 sq ft | 398–980 sq ft |
| Price Range | $279 K–$600 K | $400 K–$887 K |
| Average ROI | ~19.5%* | ~27.4%* |
| Deposit Structure | 5% at $279 K (Jun 18 2025), 5% (Nov 15 2025) | 5% (May 26 2025), 5% (Jun 18 2025) |
| Amenities | Rooftop deck with lake views, coworking, yoga studio, infrared sauna, bike wash | Pool, hot tub, outdoor lounge, putting green, coworking, BBQ area |
Key differences between the two properties lie in return on investment, entry pricing, development scale, and overall positioning.
Return on Investment & Pricing
Sokana Riverview offers a higher projected return on investment, averaging approximately 27.4%*, compared to Nikola’s estimated 19.5%*. However, Sokana has higher entry costs, starting at $400,000, while Nikola offers a more accessible starting price of $279,000.
Development Scale and Occupancy Timing
Nikola is part of a larger, master-planned Innovation District focused on sustainable, wellness-oriented urban living. Sokana Riverview, by contrast, is a boutique development situated along the riverfront, with a smaller scale and central location near downtown Penticton.
Projected occupancy is sooner for Nikola, in December 2027, as opposed to Sokana’s June 2028.
Developer
Both projects are backed by experienced developers. Nikola is being developed by Tien Sher and Stryke, known for their large-scale, mixed-use projects. Sokana Riverview is led by Kerkhoff, a developer recognized for delivering quality concrete and wood-frame condominiums across the Okanagan, with a reputation for timely and efficient project execution.
Lifestyle and Location Appeal
Nikola’s focus on community, sustainability, and wellness, along with its extensive modern amenities, makes it appealing to those seeking a more integrated, future-forward living environment. Meanwhile, Sokana Riverview is designed with a resort-inspired aesthetic, offering premium amenities and close proximity to both nature and the vibrant city center, making it attractive to residents and investors seeking a luxurious, vacation-oriented experience.
Lifestyle and Investment Fit
The decision between Nikola and Sokana Riverview ultimately depends on your investment goals and risk tolerance.
Nikola may be better suited for investors looking for a lower-cost entry into a long-term growth area, with the added benefit of community-focused urban planning and diversification through broader commercial integration. Sokana Riverview may appeal to those prioritizing higher short-term returns, boutique exclusivity, and riverfront living within immediate reach of downtown Penticton.
*The financials/returns provided are taken from Investor’s Playbook; these are forecasts only and are based on historical assumptions and are for informational purposes only. It should not be considered or relied upon as advice by Playbook Media Corp. and its affiliates (collectively, “Playbook”) and should also not be considered as a substitute for professional advice or recommendation on real estate investing. Playbook Media Corp. and its affiliates (collectively, “Playbook”) shall not accept any responsibility or liability of whatsoever nature for or in connection with any use of or reliance on the forecasts and/or historical assumptions for this or any real estate development project. Nothing here is or shall be considered as any recommendation or offer or solicitation to offer of any investment product.
