Experts in real estate are raising concerns that the Federal Government's recent tax reforms will significantly affect Nigeria's property market, potentially leading to escalated rents and heightened property prices. Tobi Adama, Managing Director of AlphaCrux Limited, emphasized that these reforms, which are set to take full effect by 2026, are already prompting property owners to adjust their pricing strategies in response to increased tax liabilities.

Adama noted that property owners are currently facing challenges as they navigate the implications of the new tax regime. Instead of absorbing these costs, many landlords are choosing to pass the increased expenses onto tenants and prospective buyers. This trend is evident with visible increments in rent prices and overall property costs, indicating a direct link between the tax changes and the real estate market dynamics. As property owners adapt to the new financial landscape, the strategies they employ will shape the affordability and accessibility of housing in Nigeria.

Furthermore, Adama suggested that while the tax reforms present certain challenges, they could also lead to positive developments for the real estate sector if the broader economy thrives. Essentially, a flourishing economy could enhance property values and stimulate growth within the housing market, although the initial adjustments might result in increased financial burdens for renters and buyers. Thus, stakeholders within the property sector must carefully consider the long-term implications of these reforms on the housing market.