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Canada extends ban on real estate purchases by foreigners until 2027 |  The world and science

Canada extends ban on real estate purchases by foreigners until 2027 | The world and science

A group of buildings in Vancouver, southwestern CanadaReproduction

Posted on 02/05/2024 at 07:41

The Canadian government announced on Sunday that the ban on foreigners buying real estate in Canada, which has been in effect since January 2023, will be extended until 2027, with the aim of addressing the shortage of homes and apartments in the country.

“By extending the ban, we will ensure that real estate is used as homes for Canadian families and will not be converted into speculative financial assets,” Canadian Deputy Prime Minister Chrystia Freeland said.

Exceptions to the law, which apply only to urban housing and not tourist housing, remain in place for refugees or permanent residents, as well as for certain groups of international students and temporary workers.

Justin Trudeau's Liberal government has blamed foreign investors for high prices for years, especially with purchases in large urban centres.

However, experts say the ban on foreign buyers — who account for between 2% and 7% of all property owners in Canada in 2021, according to official data — won't make prices more affordable. Instead, they point out that it is necessary to build more properties to meet demand.

In mid-January, Canada also announced restrictions on issuing permits to foreign students, whose numbers have risen in recent years, exacerbating the housing crisis, according to the government.

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