Canada has barred foreigners from purchasing residential properties in city centres for 2 years as the American nation tries to improve housing affordability as well as accessibility for its citizens. The ban, which would apply only to city dwellings and not to recreational properties such as summer cottages, comes into effect from January 1, 2023, media reported.
The new rule provides exceptions for purchases by immigrants and permanent residents of Canada who are not citizens.
Prime Minister Justin Trudeau has made this proposal in his election campaign in 2021. “Ban foreign money from purchasing a nonrecreational, residential property in Canada for the next two years, unless this purchase is confirmed to be for future employment or immigration in the next two years,” Trudeau’s campaign website said.
Following his party’s election victory, the government introduced the Prohibition on the Purchase of Residential Property by Non-Canadians Act.
Experts are, however, of the opinion that the ban on foreign buyers would not have the desired effect of making homes more affordable because they account for only an insignificant share. According to the National Statistical Agency, foreign buyers accounted for less than 5% of home ownership in Canada.
Also, the steep rise in home prices in 2020 and 2021 has already been reversed in 2022 ─ average housing prices peaked just above 800,000 Canadian Dollars in February and have since dropped about 13% from that peak.
An alumna of the Indian Institute of Mass Communication, Dhenkanal, Sunita Mishra brings over 16 years of expertise to the fields of legal matters, financial insights, and property market trends. Recognised for her ability to elucidate complex topics, her articles serve as a go-to resource for home buyers navigating intricate subjects. Through her extensive career, she has been associated with esteemed organisations like the Financial Express, Hindustan Times, Network18, All India Radio, and Business Standard.
In addition to her professional accomplishments, Sunita holds an MA degree in Sanskrit, with a specialisation in Indian Philosophy, from Delhi University. Outside of her work schedule, she likes to unwind by practising Yoga, and pursues her passion for travel.
sunita.mishra@proptiger.com
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