Canada: foreigners can no longer buy a house

Starting this Sunday, January 1, 2023 and for the next two years, foreigners will no longer be able to buy homes in Canada. An exceptional decision taken by the government to combat the shortage of houses and apartments in the country.

Reviving the real estate market. Canada, through its Prime Minister Justin Trudeau, has introduced a new law that bans foreigners from buying homes in the country for two years, until 2025. This measure proposed during the 2021 election campaign aims to revive the real estate market in Canada , which is experiencing a housing shortage.

At the time, Justin Trudeau’s Liberal Party lamented that foreign investors were driving up prices, which was making it difficult for Canadians to access property. However, the real estate market has recently slowed down under the effect of the increase in interest rates decided by the Central Bank to curb inflation.

Declining average house price

According to the real estate agents’ association, the average home price last month was 630,000 Canadian dollars (435,000 euros), up from 800,000 a year ago.

However, some experts doubt the measure will be effective, as foreigners make up less than 5 percent of homeowners in Canada, according to the national statistics agency. They believe it would be better to speed up the construction of new housing.