Real estate stakeholders have stated that recent federal tax reforms may change how Nigeria’s property market operates, with effects on rents, property prices and investment dynamics across the sector.
The remarks were made on Thursday during the 10th AlphaCrux Real Estate Outlook Conference in Lagos. The conference theme was “Amplifying resilience in the real estate industry in a disputed global economy”.
The Federal Government’s recent tax changes, introduced under the Nigeria Tax Act 2025 and related measures, aim to overhaul the national tax system for implementation beginning January 2026.
The reforms include adjustments to personal and corporate taxes; capital gains tax and specific levies linked to property and wealth.
Experts across Nigeria’s property and finance sectors have given varying assessments of how these changes will affect housing, investment and real estate financing. Some see potential boosts, while others raise concerns about costs and investment flows.
During the Lagos event, the Managing Director of AlphaCrux Limited, Tobi Adama, said participants are grappling with the implications of the reforms. He noted that early effects include rising rents and higher reported property costs.
He said, “One of the effects we have seen is that it has automatically increased the prices of rents and prices of properties.”
Adama added that foreign investment interest appears to be increasing, noting improved inflation trends and strengthening external reserves. He said these factors may benefit the real estate sector during 2026.
Also speaking, the Chief Operating Officer of Brokerfield Real Estate Services Limited, Mr. Akin Opatola, described the reforms as a positive step. On the 1.5 per cent luxury property tax component, he said it targets high‑end real estate and can be a strong revenue driver for government.
He said, “Reforms are steps in the right direction.”
Industry experts have said aspects of the new tax law, such as tax relief for mortgage interest and exemptions for residential property sales, could make homeownership more accessible.
Other provisions allow for exemptions from capital gains tax for institutional investors such as pension funds and REITs.
At the same time, some analysts outside the conference have warned that higher capital gains and other levies could affect investment decisions in real estate and broader markets.
