Experts in the real estate sector have said the Federal Government’s tax reforms could significantly reshape the dynamics of Nigeria’s property market in 2026.
The position was shared on Thursday at the 10th AlphaCrux Real Estate Outlook Conference held in Lagos, themed “Amplifying resilience in the real estate industry in a disputed global economy.”
Speaking at the event, the Managing Director of AlphaCrux Limited, Tobi Adama, said the new tax policies are among the most critical government decisions expected to influence the real estate sector this year.
According to him, early signs suggest that the reforms have already contributed to an increase in rent and property prices.
“One of the key things is the new tax reform. We are still grappling with it and trying to understand it. But one of the effects we have seen is that it has automatically increased the prices of rents and properties,” Adama said.
He explained that many property owners now pass the tax burden to tenants and buyers by adjusting prices upward.
Adama, however, noted positive indicators for the sector, pointing out that foreign investors are gradually returning as economic conditions improve.
“We are seeing inflation come down, external reserves growing, and foreign investors coming back into the country. These are positive signs for the real estate industry this year,” he added.
He also highlighted the growing impact of technology in real estate over the past decade, from digital invoicing to smart building design and online property transactions.
Also speaking, the Chief Operating Officer of Brokerfield Real Estate Services Limited, Akin Opatola, described the tax reforms as steps in the right direction, particularly the 1.5 per cent luxury property tax targeted at high-end developments.
“Tax is a major revenue driver globally. The 1.5 per cent luxury tax is innovative and targeted at the upper end of the market,” Opatola said, noting the large number of high-rise luxury developments in areas such as Victoria Island, Ikoyi, and Oniru.
He, however, stressed that infrastructure development must match the growth in luxury real estate, citing poor road conditions and flooding around high-end areas like Banana Island.
“In terms of infrastructure, we still have a long way to go—roads, drainage, street lights, and security. Government needs to do more to support the sector,” he said.
Opatola added that improved infrastructure would encourage more development, boost property values, and increase tax revenues for the government.
The 1.5 per cent luxury property tax, part of the Nigeria Tax Act 2025, applies annually to high-value residential properties in upscale areas of major cities, including Ikoyi and Banana Island in Lagos, and Maitama and Asokoro in Abuja.
The broader tax reforms also introduce changes to personal income tax, corporate tax, capital gains tax, and tax administration, which experts say could further influence investment and housing affordability in the coming years.
