Picture this: a 1950s bungalow on a generous lot in Killarney-Glengarry sells for $450,000, gets demolished, and within 18 months becomes a stunning modern infill home worth over $1 million. This isn’t just happening once—it’s a trend that’s reshaping Calgary’s urban landscape and creating unprecedented opportunities for investors who know where to look.
Calgary’s infill development boom isn’t accidental.
It’s the result of strategic city planning, changing lifestyle preferences, and a perfect storm of market conditions that have aligned to create what many developers are calling the “infill opportunity of a decade.” The City of Calgary’s commitment to urban densification, combined with programs like the Infill Fast Track Program, has streamlined what was once a bureaucratic nightmare into a surprisingly efficient process.
But here’s what makes 2025 particularly exciting: while everyone’s talking about the housing crisis and affordability challenges, smart investors are quietly capitalizing on the solution. Inner-city infill development isn’t just addressing Calgary’s housing needs—it’s generating impressive returns for those who understand the market dynamics at play.
In this comprehensive analysis, we’ll dive deep into the five Calgary neighborhoods that are delivering the strongest ROI potential for infill development in 2025.
But first, we’ll explain the backstory of Calgary’s infill development for smart investors.
Why Calgary Infill Development is Booming in 2025
Let’s be honest—Calgary hasn’t always been known for its inner-city living appeal. For decades, the sprawling suburbs beckoned with their promise of space and affordability. But 2025 tells a different story, and the shift is dramatic enough to make even the most suburban-minded developers take notice.
The transformation starts with changing demographics and lifestyle preferences. Young professionals, empty nesters, and even growing families are increasingly choosing walkable neighborhoods over car-dependent suburbs. They want to bike to work, walk to trendy restaurants, and actually know their neighbors. This isn’t just a Calgary phenomenon—it’s happening across North America—but Calgary’s response has been particularly strategic.
Enter the City of Calgary’s urban densification strategy, which isn’t just policy jargon—it’s a comprehensive reimagining of how the city grows. Rather than continuing the endless suburban expansion that defined Calgary’s past, city planners are actively encouraging gentle intensification in established neighborhoods. This means transforming single lots into duplexes, replacing aging bungalows with modern infills, and creating more housing options within walking distance of transit and amenities.
The game-changer? Calgary’s Infill Fast Track Program, launched to eliminate the bureaucratic bottlenecks that previously scared away developers. What used to take 12-18 months for permit approval now happens in 4-6 months for qualifying projects. For investors, this translates directly to reduced carrying costs, faster project turnover, and more predictable timelines. When time literally equals money in development, this program has been nothing short of revolutionary.
But the real catalyst driving Calgary’s infill boom is economic. The city’s ongoing diversification beyond oil and gas has attracted a new wave of tech workers, healthcare professionals, and service industry entrepreneurs who prioritize location over lot size. These aren’t the oil patch workers of previous booms—they’re professionals who value proximity to downtown, access to cultural amenities, and the kind of community connections that only established neighborhoods can provide.
Investment Benefits: Why Smart Money is Moving Inner-City
Here’s where things get interesting from an investor’s perspective. While suburban developers compete for increasingly expensive land on Calgary’s periphery, infill developers are finding exceptional value in mature neighborhoods where aging housing stock meets modern demand.
The capital appreciation potential is compelling. Unlike suburban developments where you’re competing with dozens of similar projects, infill developments often become the premium option in their immediate area. A well-designed modern infill in Mount Pleasant or West Hillhurst doesn’t just compete with other new builds—it becomes the neighborhood standout that commands premium pricing.
The rental market dynamics are equally attractive. Calgary’s inner-city rental demand has strengthened significantly, driven by professionals who want to minimize commute times and maximize lifestyle amenities. Vacancy rates in mature neighborhoods with good transit access are consistently lower than suburban areas, and rental premiums for modern, well-designed infills can be substantial.
Perhaps most importantly, infill development offers what many investors crave: reduced development risk through shorter project timelines. The Infill Fast Track Program, combined with established neighborhood infrastructure, means fewer unknowns and faster project completion. When you can move from permit to occupancy in under a year, your capital isn’t tied up as long, and you can reinvest profits more quickly.
The infrastructure advantages are often overlooked but incredibly valuable. Mature neighborhoods already have established utilities, transit connections, schools, and community amenities. Unlike suburban developments where you might wait years for promised amenities to materialize, infill developments benefit immediately from decades of community investment.
This combination of factors—streamlined approvals, strong demand, established infrastructure, and shorter timelines—creates what economists call a “convergence opportunity.” Multiple positive trends are aligning simultaneously, creating outsized returns for investors who understand the dynamics at play.
The question isn’t whether Calgary’s infill development boom will continue—it’s which neighborhoods will deliver the strongest returns as this transformation accelerates. That’s exactly what we’ll explore as we dive into our top five areas for infill development ROI in 2025.
Top 5 Calgary Neighborhoods for Infill Development ROI
#1 Killarney-Glengarry: The Inner-City Investment Leader
#2. Altadore: Southwest Luxury Infill Paradise
If Killarney-Glengarry represents the democratic appeal of inner-city living, Altadore is where Calgary’s luxury infill market truly shines. This southwest neighborhood has quietly become the go-to destination for high-end infill development, and the numbers are impressive enough to make any investor take notice.
What makes Altadore special starts with its bones—literally. The neighborhood is dominated by post-war bungalows sitting on generously sized lots, creating the perfect canvas for luxury infill development. We’re talking about 50-foot frontages that allow for spacious, architecturally sophisticated homes that don’t feel cramped or compromise on design. In Calgary’s increasingly dense urban core, this kind of development space is becoming rare and valuable.
The R2 zoning designation is where Altadore really delivers for investors. This zoning supports not just single-family infills, but duplex and multi-unit development opportunities that can significantly boost ROI potential. Smart developers are capitalizing on this by creating sophisticated duplex infills that appeal to both owner-occupants and investors seeking premium rental properties.
Location-wise, Altadore hits the sweet spot that luxury buyers demand. You’re close enough to downtown for an easy commute, but far enough away to feel like a distinct neighborhood with its own character. The proximity to major parks—including easy access to the Glenmore Reservoir and Weaselhead Natural Area—adds the outdoor recreation element that Calgary’s affluent buyers prioritize.
The market dynamics in Altadore are fascinating. The neighborhood benefits from what real estate economists call “spillover premium”—it sits adjacent to some of Calgary’s most established upscale communities, which creates natural demand for luxury housing at a slightly more accessible price point. High-end infill homes here consistently command premium pricing because they offer luxury living without the premium location costs of neighborhoods like Mount Royal or Elbow Park.
From a rental investment perspective, Altadore luxury infills attract a specific demographic: executives, medical professionals, and successful entrepreneurs who want modern amenities and sophisticated design but prefer detached living over downtown condos. These tenants typically sign longer leases, take better care of properties, and pay premium rents for quality housing.
The development process in Altadore tends to be smoother than in some other inner-city areas. The community is generally supportive of well-designed infill development, understanding that thoughtful intensification maintains property values while updating the neighborhood’s housing stock. This translates to fewer development headaches and more predictable project timelines for investors.
#3. West Hillhurst: Northwest's Premium Development Zone
West Hillhurst represents Calgary infill investment at its most strategic. This northwest neighborhood combines the best of inner-city accessibility with genuine natural beauty, creating a development environment where location advantages translate directly to sustained ROI performance.
The Bow River proximity is West Hillhurst’s signature advantage. We’re not talking about distant river views—this is a neighborhood where you can walk to the Bow River pathway system, enjoy direct access to Prince’s Island Park, and live within the kind of natural setting that Calgary’s outdoor-enthusiastic residents will pay premium prices to access. For investors, waterfront proximity has historically been one of the most reliable drivers of long-term property appreciation.
The demographic profile driving West Hillhurst’s infill demand is particularly investor-friendly. You’re looking at professionals and families who work downtown but refuse to sacrifice outdoor recreation access. Medical professionals from nearby Foothills Hospital, professionals working in Calgary’s expanding tech sector, and established families seeking walkable community living. These aren’t transient renters—they’re long-term residents who create the kind of stable demand that makes rental investments particularly attractive.
The redevelopment activity in West Hillhurst has been consistently strong without becoming oversaturated. The neighborhood is experiencing what urban planners call “organic intensification”—steady, well-designed infill development that enhances rather than overwhelms the existing community character. This balanced approach maintains the neighborhood’s appeal while ensuring that quality infill developments don’t face excessive competition.
Transit and amenity access in West Hillhurst delivers immediate value for both residents and investors. The neighborhood’s proximity to major institutions, combined with excellent pathway connections and established community amenities, means tenants and buyers get immediate lifestyle benefits rather than waiting for promised future developments.
The infrastructure advantages are particularly compelling for developers. West Hillhurst’s established utility systems, mature tree canopy, and existing community amenities mean lower development costs and immediate neighborhood appeal. You’re building in a location where the community infrastructure investment has already been made and proven to attract quality residents.
For Calgary infill ROI calculations, West Hillhurst offers the kind of location premium stability that sophisticated investors seek. The combination of natural amenities, downtown accessibility, and established community character creates multiple layers of value that tend to appreciate consistently rather than experience the volatility that can affect suburban developments.
#4 Mount Pleasant: Character Meets Modern Living
Mount Pleasant represents Calgary infill development at its most charming—and most profitable. This established inner-city neighborhood north of 16 Ave NW has mastered the art of blending historical character with modern investment opportunities, creating a development environment where community charm translates directly to sustained ROI performance.
The tree-lined streets and character homes that define Mount Pleasant aren’t just pretty—they’re valuable assets that create the kind of neighborhood appeal that buyers and tenants pay premium prices to access. We’re talking about mature elm canopies, well-maintained sidewalks, and the kind of community character that takes decades to develop but creates immediate market value for quality infill developments.
The R2 zoning designation in Mount Pleasant opens up sophisticated investment strategies that go beyond single-family infills. Smart developers are capitalizing on duplex opportunities that maintain neighborhood character while maximizing ROI potential. These duplex infills often appeal to both owner-occupants seeking modern living in an established area and investors looking for premium rental opportunities in Calgary’s competitive inner-city market.
What makes Mount Pleasant particularly attractive for Calgary infill investment is its proven track record of steady appreciation. The neighborhood has demonstrated consistent property value growth driven by its central location and walkable community design. Residents can access downtown employment, nearby shopping, and established amenities without the car dependency that defines much of Calgary’s suburban development.
The demographic driving Mount Pleasant’s infill demand creates exactly the kind of stable rental market that sophisticated investors seek. You’re looking at professionals who prioritize walkability, growing families who want established neighborhoods with character, and empty nesters who are downsizing but refuse to sacrifice community connection. These residents typically stay longer, take better care of properties, and create the kind of neighborhood stability that supports premium pricing.
The development process in Mount Pleasant benefits from strong community support for thoughtful intensification. Residents understand that well-designed infill development maintains property values while updating the neighborhood’s housing stock. This community acceptance translates to smoother approval processes and more predictable development timelines—critical factors for ROI calculations.
#5 Bowness: The Affordable Infill Opportunity
Bowness represents Calgary infill development’s best-kept secret—a historic northwest community that’s transforming from small-town charm into a legitimate investment hotspot. For investors seeking Calgary infill opportunities with exceptional upside potential, Bowness offers the rare combination of affordability and authentic character that’s becoming increasingly difficult to find in Calgary’s inner-city markets.
The affordability factor in Bowness isn’t just about lower entry costs—it’s about exceptional value relative to other inner-city Calgary neighborhoods. While areas like Killarney-Glengarry and Altadore command premium pricing, Bowness offers similar proximity to downtown and the Bow River at price points that allow for more aggressive investment strategies and higher percentage returns.
The variety of development opportunities in Bowness is remarkable. You’ll find everything from compact city lots perfect for efficient infill designs to larger riverfront properties that support luxury development projects. This diversity means investors can match their development strategy to their budget and risk tolerance while still capitalizing on the neighborhood’s transformation.
The Bow River access in Bowness isn’t just scenic—it’s a genuine lifestyle amenity that drives long-term property appreciation. The neighborhood offers direct access to Calgary’s pathway system, recreational opportunities, and the kind of natural setting that Calgary residents increasingly prioritize. For investors, waterfront proximity has historically been one of the most reliable drivers of sustained property value growth.
The ongoing redevelopment activity in Bowness creates a rising tide effect that benefits all quality developments. As more sophisticated infill projects establish higher neighborhood standards, earlier investors benefit from the overall market elevation. This transformation momentum is still building, meaning investors who enter now can capitalize on the neighborhood’s appreciation curve rather than paying premium prices for established markets.
The community character in Bowness provides the kind of authentic neighborhood feel that’s becoming rare in Calgary’s urban core. The historic small-town roots, combined with genuine community connections and local amenities, create the kind of neighborhood appeal that attracts long-term residents rather than transient renters.
For Calgary infill development ROI, Bowness offers the compelling combination of affordability, character, and upside potential that sophisticated investors seek. The neighborhood is positioned to benefit from Calgary’s continued inner-city development trends while still offering entry points that allow for exceptional percentage returns on well-executed projects.
Key Success Factors for Calgary Infill Investment
The difference between mediocre returns and exceptional ROI in Calgary infill development comes down to mastering the fundamentals that separate successful projects from costly mistakes. After analyzing hundreds of infill developments across Calgary’s inner-city markets, three critical success factors consistently determine investment outcomes.
Understanding Zoning Regulations
Here’s the reality about Calgary infill investment: zoning isn’t just bureaucratic red tape—it’s your roadmap to maximizing ROI potential. The difference between R1 and R2 zoning can literally double your development options and significantly impact your bottom line.
R2 zoning is where Calgary infill development gets interesting for investors. This designation allows for duplex development, secondary suites, and multi-unit configurations that can dramatically improve your rental yield or resale value. In neighborhoods like Altadore and Mount Pleasant, smart developers are using R2 zoning to create sophisticated duplex infills that appeal to both owner-occupants and investors seeking premium rental properties.
But here’s what most investors miss: not all R2-designated properties are created equal. Lot size, setback requirements, and height restrictions can vary significantly even within the same neighborhood. A 33-foot lot with R2 zoning might only support a basic duplex, while a 50-foot lot opens up architectural possibilities that command premium pricing.
The key is understanding Calgary’s Land Use Bylaw before you buy, not after. Site coverage ratios, floor area ratios, and parking requirements all impact your development potential and project costs. Working with developers who understand these nuances—like the team at Jenga Homes—can mean the difference between a constrained project and one that maximizes your lot’s potential.
Calgary’s discretionary use applications offer another layer of opportunity for sophisticated investors. While the approval process takes longer, discretionary applications can unlock development potential that significantly exceeds standard zoning permissions. The key is understanding which discretionary uses are likely to gain approval and which are worth the additional time and cost investment.
Market Timing and Trends
Calgary’s infill market doesn’t follow the same cycles as suburban development, and understanding these timing differences is crucial for ROI optimization. While suburban markets can experience dramatic boom-bust cycles, inner-city infill markets tend to demonstrate more consistent demand patterns driven by lifestyle preferences rather than speculative investment.
The current Calgary infill market trends strongly favor investors who understand demographic shifts driving demand. The influx of tech workers, healthcare professionals, and service industry entrepreneurs has created sustained demand for modern housing in walkable neighborhoods. These aren’t oil patch boom workers seeking maximum square footage—they’re professionals who prioritize location, design quality, and community amenities.
Inventory levels in Calgary’s top infill neighborhoods remain favorable for well-positioned developments. While overall housing inventory has increased compared to previous years, quality infill homes in desirable neighborhoods continue to move quickly when priced appropriately. The key is understanding that infill buyers are typically less price-sensitive than suburban buyers, but more demanding about design quality and neighborhood character.
Construction cost trends are particularly important for Calgary infill ROI calculations. Material costs and labor availability can significantly impact project budgets, but infill developments often benefit from economies of scale and established contractor relationships that suburban developers can’t access. Working with experienced infill builders who have established supply chains and trade relationships can provide significant cost advantages.
The timing of your market entry matters more in infill development than in suburban projects. Neighborhoods like Bowness are still early in their transformation curve, offering higher percentage returns for investors who enter before premium pricing becomes established. Conversely, mature infill markets like Killarney-Glengarry offer more predictable returns but lower upside potential.
Working with Experienced Developers
This is where Calgary infill investment success often hinges: the quality of your development partner. Infill development involves navigating community dynamics, city approval processes, and construction challenges that suburban developers rarely encounter. The learning curve is steep, and mistakes are expensive.
Experienced Calgary infill developers bring three critical advantages that directly impact your ROI. First, they understand the approval process nuances that can save months of development time. The City of Calgary’s Infill Fast Track Program offers significant timeline advantages, but only for projects that meet specific design and community integration criteria. Developers who understand these requirements can structure projects to qualify for expedited approvals.
Second, established infill developers have community relationships that smooth the development process. Inner-city neighborhoods often have active community associations and engaged residents who can significantly impact project timelines. Developers who have built trust through previous quality projects face fewer community objections and smoother approval processes.
Third, experienced infill builders understand the construction challenges unique to inner-city development. Narrow lots, utility complications, and neighbor proximity issues require specialized expertise that suburban builders often lack. The cost difference between a developer who understands these challenges and one who learns on your project can be substantial.
Quality construction considerations are particularly critical in Calgary’s infill market. Buyers and tenants in inner-city neighborhoods typically have higher expectations for design quality, finishing materials, and architectural sophistication than suburban markets. Cutting corners on construction quality can significantly impact both resale values and rental premiums.
At Jenga Homes, we’ve learned that successful Calgary infill development requires balancing community integration with modern design, maximizing lot potential while respecting neighborhood character, and delivering construction quality that supports premium pricing. These aren’t skills that transfer easily from suburban development—they require specific infill expertise and Calgary market knowledge.
The development timeline management that experienced infill developers provide can significantly impact your carrying costs and ROI calculations. Projects that stretch beyond planned timelines due to approval delays, construction complications, or community issues can quickly erode profit margins. Working with developers who have proven track records of on-time, on-budget project delivery is essential for successful Calgary infill investment.
Why Choose Jenga Homes for Your Calgary Infill Project
Calgary’s infill development opportunities are exceptional, but success requires more than just identifying the right neighborhoods. It demands working with a development partner who understands the nuances of inner-city construction, community dynamics, and investment optimization. Here’s why sophisticated investors consistently choose Jenga Homes for their Calgary infill development projects.
Proven Track Record in Calgary's Top Infill Neighborhoods
Experience matters in Calgary infill development, and Jenga Homes has built our reputation by delivering successful projects across the city’s most desirable inner-city areas. We’ve navigated the approval processes, community dynamics, and construction challenges in neighborhoods like Killarney-Glengarry, Altadore, West Hillhurst, Mount Pleasant, and Bowness—not just once, but consistently over multiple projects.
Our portfolio demonstrates what successful Calgary infill development looks like: projects that maximize lot potential while respecting neighborhood character, constructions that command premium pricing through superior design and quality, and developments that integrate seamlessly into established communities. When you work with Jenga Homes, you’re partnering with a team that has already solved the challenges you’re likely to encounter.
This experience translates directly to your ROI. We understand which design approaches gain community support and expedite approvals. We know how to maximize R2 zoning potential while maintaining neighborhood appeal. We’ve established the trade relationships and supply chains that keep projects on schedule and on budget. Most importantly, we’ve learned how to deliver the construction quality and design sophistication that Calgary’s infill buyers and tenants demand.
End-to-End Development Expertise and Support
Calgary infill development involves dozens of moving parts, from initial site evaluation through final occupancy permits. Jenga Homes provides comprehensive development services that eliminate the complexity and risk of coordinating multiple contractors, consultants, and approval processes.
Our end-to-end approach means you work with one experienced team that handles everything: site analysis and feasibility studies, architectural design and engineering, city approvals and permit applications, construction management and quality control, and final finishing and occupancy preparation. This integrated approach eliminates the communication gaps and coordination issues that can derail projects and erode profits.
We’ve streamlined our processes to take advantage of Calgary’s Infill Fast Track Program, ensuring your projects qualify for expedited approvals whenever possible. Our established relationships with city planners, community associations, and local trades mean smoother approval processes and more predictable project timelines.
Perhaps most importantly, our comprehensive approach allows us to optimize your project for maximum ROI from day one. We don’t just build what you ask for—we analyze your investment goals, evaluate market opportunities, and recommend strategies that maximize your return potential while minimizing development risks.
Data-Driven Market Intelligence and Investment Optimization
Successful Calgary infill investment requires more than construction expertise—it demands deep understanding of neighborhood trends, buyer preferences, and market dynamics. Jenga Homes combines construction excellence with sophisticated market analysis to ensure your investment decisions are based on data, not guesswork.
Our market intelligence goes beyond general Calgary trends to provide neighborhood-specific insights that directly impact your ROI potential. We track sales data, rental rates, absorption patterns, and development activity across Calgary’s infill markets. This information helps us recommend optimal development strategies, pricing approaches, and timing decisions that maximize your investment returns.
We also understand the demographic trends driving Calgary’s infill demand and how to design projects that appeal to these target markets. Whether you’re developing luxury infills for Altadore’s upscale market or affordable options for Bowness’s transformation, we know how to match your project to market demand for optimal ROI performance.
Our commitment to results-focused development means we measure success by your investment performance, not just construction completion. We provide ongoing market feedback, help optimize rental strategies for investment properties, and maintain relationships that can facilitate future development opportunities as your Calgary infill portfolio grows.
Ready to Capitalize on Calgary's Infill Opportunity?
The data is clear: Calgary’s top infill neighborhoods offer exceptional ROI potential for investors who understand the market dynamics and work with experienced development partners. The combination of city support, demographic trends, and established neighborhood advantages creates a compelling investment environment that’s likely to strengthen throughout 2025 and beyond.
But opportunity without execution is just potential. The difference between reading about Calgary infill development success and actually achieving it comes down to working with a team that has the experience, expertise, and commitment to deliver results.
Take the next step in your Calgary infill investment journey:
Free Market Analysis Consultation – Contact Jenga Homes today for a comprehensive analysis of Calgary’s current infill opportunities. We’ll review your investment goals, analyze potential neighborhoods, and provide specific recommendations for maximizing your ROI in Calgary’s dynamic infill market.
Call us at (403)-454-2218 to schedule your FREE consultation.
Email us at info@jengahomes.ca for immediate response to specific project inquiries.
Don’t let Calgary’s exceptional infill development opportunities pass you by. The neighborhoods we’ve analyzed are already attracting sophisticated investors, and the best opportunities are typically the first ones claimed. Contact Jenga Homes today and let’s turn Calgary’s infill development potential into your investment success story.
