E - PAPER

CURRENT MONTHS

LAST MONTHS

VIEW ALL
  • About
  • TEAM REALTY+
  • CONTACT US
  • SUBSCRIBE
  • HOME
  • NEWS ROOM
  • COVER STORY
  • INTERVIEWS
  • DRAWING BOARD
  • PROJECT WATCH
  • SPOTLIGHT
  • BUILDING BLOCKS
  • BRAND SYNC
  • VIDEOS
  • HAPPENINGS
  • E-MAGAZINE
  • EVENTS
    • EVENT CALENDAR
    • UPCOMING EVENT
    • PAST EVENT
search
  1. Home
  2. INTERNATIONAL

Canada's Foreign Buyer Ban Putting Housing Developments on Hold

Canada's Foreign Buyer Ban Putting Housing Developments on Hold

BY Realty Plus
Published - Saturday, 04 Mar, 2023
Canada's Foreign Buyer Ban Putting Housing Developments on Hold

The federal government's foreign buyer ban aimed at making housing more affordable for Canadians is creating uncertainty for real estate developers, forcing some to put projects on hold.

Prime Minister Justin Trudeau's Liberal government legislation that bans non-Canadians as well as corporations controlled by non-Canadians from purchasing residential property for two years went into effect on Jan. 1. The legislation, known as the Prohibition on the Purchase of Residential Property by Non-Canadians Act, was part of a broad range of policies first announced last April aimed at improving housing affordability for Canadians. But real estate experts say the broad scope of the regulations within the legislation has created unintended consequences that could impact a range of residential and commercial real estate transactions and make it more difficult to get new housing supply online.

Under the Act, residential property is not limited to homes, town homes and condominiums, but also includes any land that does not contain any habitable dwelling that is zoned for residential or mixed use and is within a census metropolitan area. That means commercial real estate transactions could be impacted by the legislation. 

Purchases are also defined in a way that could prohibit the acquisitions of a lease, mortgage or any other interest in a residential property. The definition of non-Canadians under the Act includes corporations with more than 3 per cent foreign ownership.

Many commercial real estate deals have been cancelled or are on hold despite the fact that they have nothing to do with residential housing. Developers that are partly foreign owned or rely on foreign equity cannot proceed with purpose-built developments that, in our view, are the most effective tool to tackle Canada's housing affordability crisis.

Lee says the legislation makes the government's goal of improving housing affordability more difficult and hampers developers' ability to increase supply at a time when it is most needed. He notes that it's particularly difficult for condo and purpose-built rental projects, which require significant capital for construction.

  • TAGS :
  • federal government
  • foreign
  • buyer
  • real estate
  • developers

RELATED STORY VIEW MORE

Hong Kong’s Mansion Sale Price Could Set New Asia Record
Amsterdam High Home Prices Compelling Residents to Go Tiny
Aldar Properties & Emirates Red Crescent Partner for Humanitarian Initiatives

TOP STORY VIEW MORE

L&T-Sufin MoU with Credai-Mchi for Digital Procurement of Const Material

L&T-Sufin MoU with Credai-Mchi for Digital Procurement of Const Material

25 March, 2023

LIXIL Launches LIXIL Experience Center in Mumbai

25 March, 2023

Indigo Paints Forays Into Waterproofing, Construction Chemicals

25 March, 2023

NEWS LETTER

Subscribe for our news letter


E - PAPER


  • CURRENT MONTHS

  • LAST MONTHS

Subscribe To Realty+ online



REALTY+ SPECIAL ISSUES


  • THE TECH TITANS 2022

  • COFFEE TABLE BOOK 2022

  • Anniversary Issue 2022

  • Anniversary Issue 2020

VIDEO GALLERY VIEW MORE

LUBRIZOL Presents Women of Vision Summit & Awards 2023
Get connected with us on social networks!
ABOUT REALTY+

Started in 2004, Realty+, an exchange4media group publication is one of the most respected real estate magazines in India with offices in Delhi, Mumbai and Bengaluru.

Useful links

HOME

NEWS ROOM

COVER STORY

INTERVIEWS

DRAWING BOARD

PROJECT WATCH

SPOTLIGHT

BUILDING BLOCKS

BRAND SYNC

VIDEOS

HAPPENINGS

E-MAGAZINE

EVENTS

OTHER LINKS

SITE MAP

GDPR-COMPLIANCE

COOKIE-POLICY

PRIVACY-POLICY

TERMS AND CONDITIONS

Contact

ADSERT WEB SOLUTIONS PVT. LTD. 3'rd Floor, D-40, Sector-2, Noida (Uttar Pradesh), Pincode - 201301

tripti@exchange4media.com
realtyplus@exchange4media.com

+91 98200 10226


Copyright © Realty Plus Magazine.