Real Estate Stakeholders have said that Canada’s decision to foreign property investors would positively impact the Nigerian real estate market.
Recall, that the Canadian government on June 23, 2022, introduced a policy banning non-canadian citizens from buying residential properties as investments effective from January 1, 2023.
According to a CNN report, the law was passed because of a spike in Canadian home prices since the start of the pandemic and some politicians’ beliefs that foreign buyers were responsible for snapping up the supply of homes as investments.
The report read, “The desirability of Canadian homes is attracting profiteers, wealthy corporations, and foreign investors, this is leading to a real problem of underused and vacant housing, rampant speculation, and skyrocketing prices. Homes are for people, not investors,” said the campaign website of Prime Minister Justin Trudeau’s party.
“Canada has built a reputation as a multicultural nation that welcomes people from around the world. As currently proposed, the prohibition on the purchase of residential property by non-Canadians can impact our reputation as a welcoming nation, the potential benefits of the ban are likely to be modest.”
The PUNCH reported that the Chief Executive Officer of Riel Homes, Kolade Adepoju, has said that the policy was a positive development for the country’s real sector.
He said, “Nigeria’s real estate industry is still one of the most lucrative industries in the World. So, it is high time we invested on our own, and pour our money into our economy. No matter how bad real estate is in Nigeria, it is a good investment. It may be a bad investment, but not in Nigeria. For instance, inflation doesn’t really eat deep into the real estate market in Nigeria.”
The Chief Executive Officer, Hilltrust Limited, Damilola Ajomale, also noted that it was a good one for Nigeria’s real estate sector, adding that he did not feel the policy restriction was a complete shutdown.
Ajomale said, “At the end of the day, I do not see it as a necessary evil. Let us focus on the Nigerian real estate market instead. There is so much space. There are lots of architects in Dubai that are really good, but they do not have the space to practice effectively there. Bringing them down to Nigeria, creating exposure to better building structures.
“Hence, the market should focus on outsourcing expatriates, particularly to train people in the sector in the country, leaving us with a more developed market with skilled workers.”
Also, the President, Real Estate Developers Association of Nigeria, Dr. Aliyu Wamakko, asserted that the Nigerian real estate market does not depend on the Canadian market, adding that what the sector depends on is local investment.
More so, the new policy prohibits foreign corporations and individuals who are not permanent residents of Canada or Canadian citizens from purchasing residential real estate in Canada between January 1, 2023, and December 31, 2024. Any contractual obligations arising or assumed prior to January 1, 2023, will not be subject to the ban.