Stakeholders claim that Canadian real estate regulations will be advantageous for the Nigerian market.

According to stakeholders, Canada’s decision to ban foreign real estate investors would have a favorable effect on the real estate industry in Nigeria.

On June 23, 2022, the Canadian government announced a policy that, starting in the next year, prohibits foreigners from investing in residential real estate.

Kolade Adepoju, the chief executive officer of Riel Homes, said that the policy was advantageous for the nation’s real estate market.

“The real estate market in Nigeria remains one of the most profitable ones worldwide. Therefore, it is imperative that we make our own investments and fund our country’s economy. Nigerian real estate is a fantastic investment regardless of how awful it is. Although not in Nigeria, it can be a terrible investment. For instance, Nigeria’s real estate market is not much impacted by inflation.

The realtor said that investing in Nigeria’s real estate market is a goldmine and urged Nigerians to work together to improve the nation’s real estate sector.

Damilola Ajomale, Chief Executive Officer of Hilltrust Limited, agreed that it was a positive development for Nigeria’s real estate market and added that he did not consider the policy limitation to be a total closure.

In the end, I don’t consider it a necessary evil. Instead, let’s concentrate on the Nigerian real estate industry. There is a ton of room. There are many excellent architects in Dubai, but they lack the room to successfully operate there. Bringing them to Nigeria will expose them to superior architectural designs.

In order to create a more developed market with competent personnel, the market should concentrate on outsourcing expatriates, especially to educate individuals in the industry in the nation.

The new Canadian real estate policy, according to Dr. Babatunde Adeyemo, chief executive officer of Pelican Valley Nig Ltd, would have both good and bad effects on the local business.

“It would benefit the Nigerian real estate market because it will inspire Nigerians living in Canada to invest domestically and support the national economy. Since this new regulation will stop capital flight, the Nigerian real estate industry would benefit.

Nigerians will be able to benefit from this and reinvest their earnings in the country’s economy. Most Nigerians living abroad reach a point of actualization between the ages of 50 and 60. After achieving their goals, they go to Nigeria to purchase real estate, which is a kind of capital flight.

He said that the lack of trust among most Nigerians would cause them to search for trustworthy individuals to invest with as the policy’s negative consequence.

Additionally, Dr. Aliyu Wamakko, president of the Nigerian Real Estate Developers Association, said that domestic investment is what the Nigerian real estate industry relies on and that it is not dependent on the Canadian market.

Furthermore, the new policy forbids foreign businesses and people from buying residential real estate in Canada between January 1, 2023, and December 31, 2024 if they are not Canadian citizens nor permanent residents of the country. The prohibition shall not apply to any contractual commitments originating or undertaken before to January1, 2023.

Additional rules are anticipated later this year and will likely affect several important aspects of the prohibition that have not yet been decided. Examples include the categories of people who are excluded from the restriction and whether the prohibition will apply to bare land that could someday be used for residential real estate development.

The rule was established, according to a CNN story, as a result of a rise in Canadian property prices since the pandemic’s outbreak and certain legislators’ convictions that foreign investors were responsible for snatching up the available housing as investments.

“The demand for Canadian houses is luring profiteers, powerful businesses, and foreign investors, which is fueling wild speculation, driving up prices, and creating a serious issue of unoccupied and unused housing. The party of Prime Minister Justin Trudeau’s said on its campaign website that “homes are for people, not speculators.”

“Canada is known for being a cosmopolitan country that welcomes visitors from all over the globe. The proposed restriction on foreigners buying residential property might harm Canada’s image as a friendly country, and any possible advantages are likely to be limited, it said.

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