Canada will ban Nigerians and other foreigners from buying homes for two years as prices of real estate properties soar in the North American country.
The move would help the state allocate billions of dollars to boost construction and cool the growing housing market, Bloomberg reported on Thursday.
According to international news platforms, the ban will be included in Finance Minister Christia Freeland’s budget today, according to a person familiar with the matter, who asked not to be named because it is a private matter.
However, the ban on foreign buyers does not apply to students, foreign workers or foreigners living in Canada, the sources said.
The move signals Prime Minister Justin Trudeau’s growing push to tame one of the most expensive real estate markets in the developed world – and that the government is increasingly concerned about the policy response to inflation and rising cost of housing.
Real estate prices in Canada have increased by more than 50% in the last two years. The market posted a record monthly gain in February as buyers traded ahead of the Bank of Canada’s rate hike, bringing the home reference price to CAD$869,300 ($693,000).
One of the top travel destinations for Nigerians, Canada has recently seen a surge in global immigrants, including Nigerians in their 20s and 30s who moved following the #EndSARS protests in October 2020.
The Canadian government also said it would accept 1.2 million immigrants from 2021 to 2023 to fill the shortfall caused by the COVID-19 pandemic.