In cities like Montreal and Quebec, new apartment towers are increasingly marked by “Two Months Free Rent” banners, signaling vacant units and sluggish demand. Meanwhile, older apartment buildings—some decades old—are leasing up quickly, often at full price and without incentives. This contrast is reshaping how investors approach multifamily real estate in Quebec, as established properties outperform newer ones.
Evguenia Kapchii, Head of Acquisitions for Société immobilière Bélanger, has witnessed this trend firsthand. Over the past five years, she has overseen more than $300 million in multifamily transactions across Quebec. Her team manages nearly 4,000 rental units, and at last count, only 30 apartments were vacant—a remarkably low rate in the current market.
“New builds now, most of them are empty,” Kapchii says. “Developers need to give gratuities—free parking, free lockers, two months free—because they’re too expensive.”
The main factor behind this split is affordability. Rents in newly constructed buildings have risen beyond the reach of many tenants, especially as Canada’s housing crisis continues to push costs higher. In contrast, older buildings—typically built before 2010 or 2015—offer more reasonable rents, drawing tenants who prioritize value over luxury finishes.
Kapchii’s portfolio ranges from brick walk-ups to concrete towers, some dating back to the 1920s. Many have been upgraded with new boilers, better insulation, and modern thermostats, providing comfortable, energy-efficient housing without the premium price tag of new construction.
“People are not after aesthetics,” Kapchii says. “They’re going to personalize their place anyway. You don’t need to rebuild the wheel.”
From an investment perspective, stabilized older buildings offer existing tenant bases, predictable cash flow, and lower risk. In contrast, new construction projects often sit vacant for months, require costly incentives to attract tenants, and incur higher carrying costs during lease-up periods.
Société immobilière Bélanger is doubling down on this approach. In 2025, the company plans to invest $5 million to upgrade 60% of its portfolio with energy-efficient improvements, including modern heating systems, improved windows, and enhanced insulation. The focus is on performance and cost savings, not cosmetic overhauls.
This strategy is attracting private investors, even as many institutional players pause acquisitions to focus on optimizing existing assets. Société immobilière Bélanger recently announced plans to expand into Ottawa, Gatineau, Edmonton, and Calgary, targeting buildings with at least 100 units in markets with substantial employment, growing infrastructure, and healthy rental demand.
“When nobody moves, you move,” Kapchii says. “This is the best way to seize opportunities.”
The company is targeting cities where older, well-maintained buildings are in demand and where it is not forced to compete with oversupplied luxury developments.
For renters, the message is clear: older buildings that have been thoughtfully updated often provide more space, lower rents, and better locations than newer towers. For investors, the opportunity is in repositioning existing assets rather than developing new ones, especially buildings 15 to 20 years old with established tenant bases and proven cash flow.
Kapchii’s team seeks properties that need targeted improvements—such as new boiler systems or energy-efficient windows—rather than full-scale renovations. The company also uses government programs like CMHC’s MLI Select, which offers favorable financing for projects that improve affordability, accessibility, or energy efficiency.
“Buying a building is like buying a business,” Kapchii says. “You have to make sure it operates well in terms of cash flow and that the bones and muscles are solid.”
The divergence between old and new buildings highlights a broader issue in Canadian housing: new construction can add supply, but if the rents are unaffordable, these buildings remain empty and fail to address the housing shortage. Older buildings, on the other hand, can serve a broader range of tenants. Kapchii’s portfolio includes units for single professionals, families, and partnerships with the city to house people experiencing homelessness, which helps stabilize occupancy and reduce investment risk.
With interest rates stabilizing and the market moving past the volatility of 2022 to 2024, investors are prioritizing assets that generate reliable income rather than speculative gains. The focus has shifted to properties with fundamental tenants paying market rents, not high-end towers waiting for lease-up.
“There’s going to be a new era for commercial real estate in 2027,” Kapchii predicts, referencing economic forecasts. “But right now, you have to seize opportunities while everyone is staying static.”
Both renters and investors should look beyond the newest buildings on the market. Well-maintained older properties, especially those with recent energy-efficient upgrades, often represent better value, more stable returns, and less risk. In today’s environment, the best deals are usually found in the buildings that have already proven their worth.
This article provides insights into multifamily real estate trends in Quebec and is not legal, financial, or investment advice.
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