The Canadian government has decided to impose a two-year restriction on foreign nationals such as Indian non-residents purchasing real estate in the country. This is done in an effort to increase the supply of and access to affordable housing for Canadian people. Experts in the real estate market predict that this change would lower demand among Indians non-residents who are not permanent residents of Canada. 

The ruling stipulates that the prohibition will go into force on January 1, 2023. This will be done with the exception of refugees and permanent residents. The restriction would also be limited to urban homes rather than include suburban or rural properties. 

During his 2021 election campaign, Canadian Prime Minister Justin Trudeau advocated the idea to curb soaring real estate costs. The Liberal Party of Canada has previously said, “The desirability of Canadian homes is attracting profiteers, wealthy corporations, and foreign investors.” 

“Canada has built a reputation as a multicultural nation that welcomes people from around the world,” the Canadian Real Estate Association (CREA) stated in a statement. The proposed ban on foreigners buying homes in Canada might hurt the country’s image as a friendly place for Indian non-residents. 

“The potential benefits of the ban are likely to be modest,” it said.