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Market Report

Ottawa Multifamily Market Report

2025 Investment Forecast

Conversions Becoming More Attractive to
Investors Amid Government Action

Multiple factors aiding repositioning efforts. Ottawa’s large university presence, stable labour market and lower cost of living caused a rapid rise in international immigration and intraprovincial migration in recent years, fuelling multifamily performance. Levels of government have been forced to take action to address the growing housing imbalance as a result. One concept being explored is the conversion of underutilized, government-owned office spaces to residential use. Amid hybrid work, the federal budget outlined a plan to cut costs by reducing its office portfolio by 50 per cent, with the government listing roughly 20 properties that could be suitable for repositioning. While these projects tend to have feasibility challenges, policy makers recently changed Ottawa’s official plan to allow for more zoning flexibility in order to speed up approvals and development timelines for office-to-residential conversions. The government is also looking to lease crown land to investors. These factors minimize upfront costs – allowing builders to pencil out projects more frequently – and ensure affordable housing remains a priority.

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