For real estate investors in Alberta, the choice between buying brand-new multi-family properties or existing apartment buildings is one of the biggest decisions you’ll make. Each path offers distinct advantages, and in markets like Calgary and Edmonton, where population growth and rental demand are surging, both options can be highly profitable.
So, how do you decide what fits your investment strategy? Let’s break it down.
The Case for New Builds
Modern Design and Amenities
Newly built 4-plexes or apartment buildings often feature open layouts, energy-efficient systems, in-suite laundry, and secure parking. These amenities appeal to today’s tenants, making it easier to attract long-term renters.
Lower Immediate Maintenance Costs
With everything brand new, plumbing, HVAC, and roofing, you won’t be dealing with costly repairs right after purchase. This means your early years of ownership are often smoother.
Energy Efficiency & CMHC Incentives
Modern builds are more likely to meet CMHC MLI Select standards for energy efficiency. That could mean as little as 5% down and up to 50-year amortizations, giving you better cash flow and more buying power.
Strong Rental Demand in Growing Areas
In Calgary, new multi-family construction is booming in neighborhoods like Seton, Mahogany, and Beltline. Edmonton, too, is seeing infill projects in Oliver, Downtown, and Windermere, areas where young professionals and families are eager for modern rentals.
The Case for Existing Properties
Lower Price per Door
Older buildings often come at a lower cost per unit compared to brand-new construction, which can make your initial investment more affordable.
Value-Add Potential
By renovating kitchens, upgrading flooring, or improving curb appeal, you can significantly increase rental income. These forced appreciation strategies are powerful for growing equity.
Established Locations
Many older properties are in prime, central neighborhoods close to transit, universities, and job hubs. That built-in demand can mean steady occupancy.
Room to Negotiate
Sellers of older properties may be more motivated, giving investors leverage in price negotiations or terms.
Which Option Fits You Best?
If you’re looking for turnkey stability, modern appeal, and financing incentives, new builds may be the way to go.
If you’re aiming for higher returns through renovations, creative repositioning, and long-term equity growth, existing properties could be your sweet spot.
Bottom Line
In Alberta, investors are in a unique position. Calgary and Edmonton’s lower construction costs compared to other provinces make new builds enticing, while older multi-family properties still offer excellent value-add opportunities.
The real secret? Many successful investors balance both, purchasing stabilized older assets while strategically adding new builds to their portfolios for long-term growth.
