In recent years the real estate market has been booming, because of numerous things, we have seen a price increase mainly because of population increase and urbanization. But how far have we come as a nation in the real estate market, so Ethiopia, real estate is contributing 12.5% to the county’s domestic growth? It remains to contribute to the world in terms of economy and enhancing the quality of living as well. Which makes the houses in Addis Ababa worth more.
Compared to other nation its substantially small but we have seen a significant growth in the sector, the global property was found to be $217 trillion in total. Residential property makes up about 75% of the total value
And in Ethiopia, real estate is contributing 12.5% to the county’s domestic growth. For generations, land has been a pivotal resource and source of power in Ethiopia and this power is exclusively in the hands of the government and cadre elites who can expropriate land at will. It has been a highly lucrative sector for both the central government, party-affiliated parastatals, top-party elites, and individuals as well as businesses with deep political connections. The lucrative business does not only emanate from mere possession of land and real estate but also from the shoddy deals and access to lucrative bank loans. With interest rates going down investors are borrowing. How much are houses worth in Addis Ababa can depend in on how you can find a great deal that is not overpriced.
Finding the best deal
Unfortunately, in today’s market, finding properties at a good price can be difficult. It’s common for properties listed at good prices to get several offers over list price. But to look at different homes in one place you should visit websites that lists different types of properties.
It’s equally important to let agents know exactly what kind of properties you’re looking for. If any agent knows you as “the guy looking for a good deal,” that’s pretty vague. Chances are you’re not going to be top-of-mind when they get a new listing. Get to find the best agent that represents you.
Apartment Prices in Ethiopia
- Price to Income Ratio: 30.56
- Mortgage as Percentage of Income; 518.17%
- Loan Affordability Index: 0.19
- Price to Rent Ratio – City Center: 11.65
- Price to Rent Ratio – Outside of Center: 14.37
- Gross Rental Yield (City Center): 8.58%
- Gross Rental Yield (Outside of Center); 6.96%
Rent Per Month
|Apartment (1 bedroom) in City Centre||438.13 $||245.74-800.00|
|Apartment (1 bedroom) Outside of Centre||185.12 $||125.00-250.00|
|Apartment (3 bedrooms) in City Centre||1,383.33 $||1,000.00-2,100.00|
|Apartment (3 bedrooms) Outside of Centre||525.00 $||500.00-1,400.00|
Buy Apartment Price
|Price per Square Meter to Buy Apartment in City Centre||1,337.50 $||1,200.00-1,500.00|
|Price per Square Meter to Buy Apartment Outside of Centre||871.75 $||787.00-1,100.00|
We have researched for years about the increasing prices of properties in Addis Ababa, but the main reason of increasing prices must have come from two reasons, one rapid population increase and two urbanization or migration to urban areas, so it’s safe to say that real estate prices in Addis Ababa will grow.