Condominium resale prices in Ottawa are expected to jump by an average annual rate of about three per cent within the next four years, according to a new study by Genworth Financial Inc.

The average price for a resale condo, which includes all individual dwellings that are privately owned but share a building and/or land with other owners, is forecasted to rise to $208,926 by 2011 in Ottawa, mainly because of rising demand from baby boomers aged 55 and older, the report said. Many of this demographic are opting for lower-maintenance condominiums as they retire and downsize from "empty nest" homes.

For 2007 alone, the expected price increase for Ottawa is 5.6 per cent, bringing the average condo price to $185,272.

The report also included data for Toronto's resale condo market, which is expected to post an annual average increase of about 3.3 per cent for the same time period, reaching an average price of $254,049 by 2011.

"Both new construction and resale activity consistently demonstrate that the Toronto and Ottawa condo markets are healthy. Beyond the affordability factor, the baby boomer demographic is increasingly driving demand in these markets," said Genworth Financial Canada president Peter Vukanovich in a statement. "In Toronto and Ottawa, price growth will remain steady through 2011, in line with the increasing over-55 population share. That will benefit all homebuyers who might otherwise have worried about potential market declines."

The report noted that Ottawa's baby-boomer population grew to 22.5 per cent last year from 19 per cent in 1996.

Canadians aged 55 and older are looking for the security, maintenance and simplicity that condominium living provides, which will help to prop up demand over the next few years, the study added.