Canadian real estate policy will boost Nigerian market – Stakeholders
Stakeholders said Canada's decision to close its doors to foreign property investors would have a positive impact on the Nigerian property market.
On June 23, 2022, the Canadian government introduced a policy prohibiting foreigners from buying residential properties as investments starting in the new year.
Riel Homes General Manager Kolade Adepoju said the policy is a positive development for the country's real estate industry.
"The Nigerian real estate sector is still one of the most lucrative sectors in the world, so it is high time we invested on our own and pumped our money into our economy. Whatever how bad real estate is in Nigeria, it's a good investment. It may be a bad investment, but not in Nigeria. For example, inflation doesn't really eat away at the real estate market in Nigeria.< /p>
The real estate agent said investing in Nigeria's property market is a gold mine, adding that Nigerians should come together to develop the country's property sector.
In a similar vein, the Managing Director of Hilltrust Limited, Damilola Ajomale, noted that this was a good thing for the Nigerian property sector, adding that he did not believe the policy restriction was a full stop.
"At the end of the day, I don't see it as a necessary evil. Let's focus on the Nigerian property market instead. There is so much space. There are a lot of architects to Dubai who are really good, but they don't have the space to practice there effectively. Bringing them to Nigeria, creating exposure to better building structures.
"Therefore, the market should focus on expatriate outsourcing, especially to train people in the sector in the country, leaving us with a more developed market with skilled workers."< /p>
Meanwhile, the managing director of Pelican Valley Nig Ltd, Dr Babatunde Adeyemo, said the new Canadian real estate policy would have both positive and negative impacts on the local industry.
“This is going to have a positive effect on the Nigerian property sector as it would encourage Nigerians in Canada to invest at home and help the country's economy. This is a win-win situation for the Nigerian property market as this new policy would curb capital flight.
“This would allow Nigerians to make profits and reinvest in the Nigerian economy. Most Nigerians in the Diaspora reach a level of actualization between 50 and 60 years of age. Having achieved what they want, they come to buy properties in Nigeria, which is a kind of capital flight. »
According to him, the negative effect of the policy would be the issue of trust, adding that most Nigerians are not trustworthy and would look for people of integrity to invest with.< /p>
Furthermore, the President of the 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 local investment.
Furthermore, 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. Bonds arising or assumed before January 1, 2023 will not be subject to the ban.
Some key elements of the ban have yet to be determined and will be subject to additional regulations expected later this year. For example, the categories of people exempt from the ban and whether the ban will apply to vacant land that may be subject to residential real estate development in the future remains to be determined.
According to a CNN report, the law was passed due to a spike in home prices in Canada since the start of the pandemic and the belief of some politicians that foreign buyers were responsible for increasing the supply of homes while investments.
"The lure of Canadian homes attracts profiteers, wealthy corporations and foreign investors, resulting in a real problem of underutilized and vacant housing, rampant speculation and rising prices." arrow. Homes are for people, not investors,” Prime Minister Justin Trudeau's party campaign website said.
“Canada has earned a reputation as a multicultural country that welcomes people from all over the world. As currently proposed, the ban on the purchase of residential property by non-Canadians may impact our reputation as a welcoming nation, the potential benefits of the ban are likely to be modest,” he said. -he declared.
Stakeholders said Canada's decision to close its doors to foreign property investors would have a positive impact on the Nigerian property market.
On June 23, 2022, the Canadian government introduced a policy prohibiting foreigners from buying residential properties as investments starting in the new year.
Riel Homes General Manager Kolade Adepoju said the policy is a positive development for the country's real estate industry.
"The Nigerian real estate sector is still one of the most lucrative sectors in the world, so it is high time we invested on our own and pumped our money into our economy. Whatever how bad real estate is in Nigeria, it's a good investment. It may be a bad investment, but not in Nigeria. For example, inflation doesn't really eat away at the real estate market in Nigeria.< /p>
The real estate agent said investing in Nigeria's property market is a gold mine, adding that Nigerians should come together to develop the country's property sector.
In a similar vein, the Managing Director of Hilltrust Limited, Damilola Ajomale, noted that this was a good thing for the Nigerian property sector, adding that he did not believe the policy restriction was a full stop.
"At the end of the day, I don't see it as a necessary evil. Let's focus on the Nigerian property market instead. There is so much space. There are a lot of architects to Dubai who are really good, but they don't have the space to practice there effectively. Bringing them to Nigeria, creating exposure to better building structures.
"Therefore, the market should focus on expatriate outsourcing, especially to train people in the sector in the country, leaving us with a more developed market with skilled workers."< /p>
Meanwhile, the managing director of Pelican Valley Nig Ltd, Dr Babatunde Adeyemo, said the new Canadian real estate policy would have both positive and negative impacts on the local industry.
“This is going to have a positive effect on the Nigerian property sector as it would encourage Nigerians in Canada to invest at home and help the country's economy. This is a win-win situation for the Nigerian property market as this new policy would curb capital flight.
“This would allow Nigerians to make profits and reinvest in the Nigerian economy. Most Nigerians in the Diaspora reach a level of actualization between 50 and 60 years of age. Having achieved what they want, they come to buy properties in Nigeria, which is a kind of capital flight. »
According to him, the negative effect of the policy would be the issue of trust, adding that most Nigerians are not trustworthy and would look for people of integrity to invest with.< /p>
Furthermore, the President of the 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 local investment.
Furthermore, 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. Bonds arising or assumed before January 1, 2023 will not be subject to the ban.
Some key elements of the ban have yet to be determined and will be subject to additional regulations expected later this year. For example, the categories of people exempt from the ban and whether the ban will apply to vacant land that may be subject to residential real estate development in the future remains to be determined.
According to a CNN report, the law was passed due to a spike in home prices in Canada since the start of the pandemic and the belief of some politicians that foreign buyers were responsible for increasing the supply of homes while investments.
"The lure of Canadian homes attracts profiteers, wealthy corporations and foreign investors, resulting in a real problem of underutilized and vacant housing, rampant speculation and rising prices." arrow. Homes are for people, not investors,” Prime Minister Justin Trudeau's party campaign website said.
“Canada has earned a reputation as a multicultural country that welcomes people from all over the world. As currently proposed, the ban on the purchase of residential property by non-Canadians may impact our reputation as a welcoming nation, the potential benefits of the ban are likely to be modest,” he said. -he declared.
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