Experts in Nigeria’s real estate sector have said that federal tax reforms may change dynamics in the industry by affecting rent costs, property prices, and investment patterns.
The remarks were made on February 6, 2026, in Lagos at the 10th AlphaCrux Real Estate Outlook Conference. The event focused on industry resilience in a global economic environment.
Tobi Adama, Managing Director of AlphaCrux Limited, said the tax reform introduced by the Federal Government was one of the key policies that would affect the real estate sector in 2026.
He stated that the reforms have contributed to rising rent prices and higher property costs. Property owners, according to Adama, often pass tax burdens onto tenants and buyers by increasing prices instead of absorbing them.
Adama also noted positive shifts in the broader economy. He said inflation had declined, external reserves were growing, and more foreign investors were returning to Nigeria. Adama said these trends could benefit the real estate industry.
The Chief Operating Officer of Brokerfield Real Estate Services Limited, Akin Opatola, said the tax reforms were steps in the right direction.
He specifically mentioned a 1.5 per cent luxury tax targeted at high-end properties as a potential revenue driver for the government.
Opatola discussed luxury developments in Lagos, including areas like Victoria Island, Oniru, and Ikoyi. He said infrastructure improvements by state governments could complement tax reforms and further stimulate real estate growth.
Adama also highlighted the role of technology in the sector. He said technology had changed property invoicing and building structuring over the past decade. The emphasis on tech-driven tools, he said, was helping with property acquisition and rental processes.
Stakeholders implied that changes in property taxation could make the sector more resilient and adaptable to economic conditions. They suggested that targeted taxes like the luxury tax could generate revenue while reforms in other areas might attract investment.
