Over the past year, property owners and developers in Addis Ababa have faced a whirlwind of regulatory changes, including heightened roof and wall taxes and title deed transfer fees. Additionally, many have grappled with the impact of road expansions, which have led to reductions in property sizes and, in some cases, complete loss of property. The recent release of a map delineating areas affected by the Corridor Development provided some relief to those spared by the project.
To gauge the sentiment of residents, commission agents, and developers, we conducted informal interviews during the week of April 15-19. The consensus? A pervasive sense of unease and anticipation. Senait Tesfa, a property owner in the Yeka district near the British Embassy, revealed her sleepless nights amid rumors of potential demolition: “I’ve been unable to rest as speculation mounts about the fate of my property. Despite my efforts to sell, there’s been little interest.”
Commission agent Assefa noted a recent dip in property prices, possibly attributed to uncertainty surrounding the impending devaluation of the Birr. However, he observed a recent uptick in prices as individuals hold off on selling until the extent of the devaluation becomes clearer. “Properties that were listed at 30 million Birr just two weeks ago are now being priced at 40 or even 45 million Birr,” he remarked.
Meanwhile, a developer in the CMC area, amidst ongoing construction and presales, experienced a six-week lull in sales. However, there was a notable shift last week, with two units sold. “It appears that some individuals are seeking to safeguard their assets by investing in real estate ahead of the anticipated devaluation,” the developer surmised.
In light of these developments, Addis Ababa’s property market remains in a state of flux, with stakeholders eagerly awaiting clarity on both regulatory changes and economic shifts.”
Editor