Experts in the real estate sector have stated that the tax reforms introduced by the Federal Government may change the dynamics of the real estate business.
The experts disclosed this on Thursday in Lagos during the 10th AlphaCrux Real Estate Outlook Conference with the theme, ‘Amplifying resilience in the real estate industry in a disputed global economy’.Speaking during the event, the Managing Director of AlphaCrux Limited, Tobi Adama, explained that one government policy that will affect real estate in 2026, either positively or negatively, is the tax reforms.Adama highlighted that the tax reforms have led to an increase in rent prices and the cost of properties
The AlphaCrux boss mentioned that in the last 10 years, the company has seen technology play a huge role in the sector.“Over the last 10 years, we have seen technology play a huge role in the real estate industry, from as low as invoicing to how you structure your buildings, making them more sustainable. Talk about technology that helps people acquire properties, that helps people also rent out and sell properties,” he said.Adama said that the idea behind the conference was to have a platform that brings industry players, including professionals and finance experts, among others, together in one room to have conversations bordering on how to collaborate and extract value for the year.Also speaking, the Chief Operating Officer of Brokerfield Real Estate Services Limited, Mr Akin Opatola, stressed that the reforms are steps in the right direction. On the 1.5 per cent luxury tax, Opatola added that he appreciates the fact that the tax is targeted at the upper end of the pyramid.
Opatola reiterated that if the government begins to tax some of these luxury developments, it will be a high revenue driver.“Reforms are steps in the right direction. It takes cognisance of the various reforms that we have seen the new government put in place. Around the world, you see that tax is a major revenue driver for governments. So, I think it’s innovative, I think it’s fantastic. As regards the 1.5 per cent luxury tax, I appreciate the fact that it is targeted at the upper end of the pyramid.
“You see a lot of buildings across the board in the Victoria Island, Oniru, Ikoyi axis. A lot of them, within the last few years, have been priced in dollars. There are a lot of takers for those properties. As of the last count, there are probably over 90 high-rise luxury developments in the VI, Ikoyi, and Oniru axis,” he stated.