As Nigeria’s real estate market is steadily and rapidly expanding, recording exponential growth, the foregoing has propelled stakeholders in the sector to seek more developmental services, infrastructure and regulations. The Realtors have proposed that the Canadian government’s recently implemented policy that imposed a ban on foreigners from buying residential properties as investments would positively impact the Nigerian real estate market. Recall that firms and stakeholders in the real estate sector have earlier made a move gradually leveraging cutting-edge technologies in order to reform the industry.
Speaking on the development, the President of the Real Estate Developers Association of Nigeria, Dr. Aliyu Wamakko, has stated that the Nigerian real estate market does not depend on the Canadian market, noting that the sector does depend on local investment. Kolade Adepoju, the Chief Executive Officer of Riel Homes, a real estate firm in Lekki, Lagos state, has described the policy as a positive development for the country’s real sector. He noted that Nigeria’s real estate industry, as a sustainable and lucrative industry, necessitates more investment to boost the economy.
The policy is not a restriction as a shutdown entirely.
Riel Homes CEO argues that investing in Nigeria’s real estate market is a good revenue source. Thus he further urges Nigerians to make concerted efforts and contributions to developing the country’s real estate industry. Likewise, the Chief Executive Officer of Hilltrust Limited, Damilola Ajomale, believes that the proposed Canadian governments property policy is not a restriction as a shutdown entirely, saying that it will benefit the country’s real estate industry. Ajomale further cited that the focus should be on the sector with so much available in the country. For instance, he said Nigeria can effectively take advantage of expert architects in Dubai who lack space practice by bringing them to the country.
According to him, Nigeria needs to focus on outsourcing expatriates, mainly to train and educate Nigerians in the sector. This will gives the country an edge and create more exposure to modern building structures, skilled and enlightened workers, and a more developed market. On his part, Chief Executive Officer Pelican Valley Nig Ltd, Dr. Babatunde Adeyemo, who also remarked on the development, asserted that the new Canadian real estate policy would have positive and negative impacts on the local industry.
Nigeria’s housing deficit was about 20m housing units in 2021.
Elaborating on the positive effect, Adeyemo explains that the policy would encourage Nigerians in the diaspora to invest at home while contributing to the country’s economic growth and would also eradicate capital flight. He described the policy’s adverse effect as the issue of trust, adding that most Nigerians are not trustworthy, and they would be looking for people of integrity to invest with. According to a report, the housing deficit in Nigeria is estimated to be about 20 million housing units as of October 2021.
Despite the detrimental effect of the COVID-19 epidemic on the economy of Nigeria, the property market has performed and continues to play an important role. Players in the sector are making solid efforts to bridge the housing gap. Nigeria has all the necessary components for successful real estate investments, including a burgeoning middle class, fast urbanization, and a youthful demographic compared to more developed nations. Even with this, getting a loan has remained a significant hurdle for real estate investors and would-be homeowners.
Key components of the ban are yet to be determined.
In addition, the new regulation imposes a prohibition for non-Canadian businesses and non-Canadian nationals from purchasing a home in Canada between January 1, 2023, and December 31, 2024. The prohibition does not apply to any contractual commitments that existed or were accepted before January 1, 2023. Although certain crucial aspects of the prohibition have still to be defined and will be subject to further rules anticipated later this year. However, the ban, as it is now planned, may affect Canada’s position as a multicultural and inclusive environment.