FG’s New Property Tax in 2025 Will Hit Luxury Homeowners Hard — Here’s the Breakdown
The Federal Government has announced a new property tax policy for 2025, aimed at high-end real estate owners.
Who Will Pay
Homes valued above ₦150 million in Lagos, Abuja, and Port Harcourt will attract an annual tax rate of 1.5% of the property’s market value.
Government’s Reason
The Finance Ministry says the tax will fund affordable housing projects and urban renewal programs.
Impact on the Market
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Luxury Sales Slowdown: Sellers may drop prices to avoid higher valuations.
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Increased Rentals: Some owners will shift to long-term rentals to offset tax costs.
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Investment Shift: Developers may focus on mid-range housing to avoid the tax bracket.
Reactions
Industry experts warn that the move could dampen investor confidence in the high-end market while boosting demand for mid-tier homes.
My Take
If you own luxury property, plan for this tax in your 2025 budget. If you’re an investor, the mid-range segment could be your best play this year.
