Some downtown developers are breathing a sigh of relief following city council’s approval of a new funding deal for the downtown arena.

Many downtown developers and condo owners say proximity to the new arena was a big part of why they chose to invest in the city’s downtown.

The downtown business Association says there are about 36 downtown projects in the works. Together, the projects are worth almost $5 billion.

Scott Penrice is selling units at the Ultima Condominiums,  being built just across the street from where the new arena will stand at 103rd Street and 103rd Avenue.

He said he’s expecting a rush of interest now that the arena is one step closer to becoming a reality.

"I think everyone always kind of knew the arena would come," he said "but now that it's a solidified thing — absolutely people are wanting to jump on it.

But veteran real estate agent Connie Kennedy said she isn't so sure the new arena will actually draw in many new downtown condo owners.

"I personally don't think it will increase the value," she said.

Real estate aside, developer Greg Christenson is predicting the arena will also have an impact on downtown businesses.

"If you have a restaurant, you’re saying ‘now's the time to revisit what i'm doing and maybe invest some money in my business.’"

And developers like him expect the new arena to transform this forgotten part of downtown into the hottest real estate market in the city.

As CBC’s Scott Fralick found out, at least one real estate agent expects the arena district will soon become the most expensive neighborhood in Edmonton per square foot.