Buying Real Estate in Ethiopia

Category : Real Estate
Posted By : eblogger
Posted Date : 02 Feb 2017 04:15 hrs

Buying Real Estate in Ethiopia

February 2, 2017 – The Ethiopian Real Estate market has been very hot for more than 15 years now. Home and land prices have been going up every year, in some cases by more than 50% in one year. Such are home prices now that it is far cheaper to buy properties in many parts of the developed world than in some areas in Addis Ababa.

In Addis Ababa Bole Area, for example, 500 square meter of land with no meaningful home in it is selling anywhere from 500,000 USD to 1,000,000 USD. Recently one square meter of land in Merkato, Addis Ababa, was bid for USD 14,000. That is 7 million USD for a plot of 500 square meter in that area.

Despite the skyrocketing prices, people are still buying properties. Traders in Mercato with a lot of cash sitting in the vaults, and people from the Ethiopian diaspora are the main buyers in this market. These people are buying these properties and, in many cases, building new high rise commercial and residential buildings in their place.

Building and selling condos is one area that is gaining some steam as well. Although delays in construction and completion are often a problem, people are still buying them. The main consumers of such condos, especially the high end ones, are the Ethiopian diaspora and local businesses who want to rent them nightly, weekly or monthly and make handsome profits.

The real estate brokerage business in Ethiopia is still primitive. It is all run by individuals with informal networks. So getting reliable agents is always a challenge. Prices are often highly negotiable and you are expected to haggle back and forth for days and weeks at times. There is also the pitfall of property ownership and potential disputes thereof. So it highly advisable not to pay any money until everything is checked and the person selling is the property is the sole owner and there is no legal issue involved. Even then installment payments are recommended instead of full payment before the property is finally transferred.

For the very latest listings of Homes for Sale in Ethiopia and Houses for Rent in Addis Ababa, Ethiopia, as well to get reliable real estate brokers in the Ethiopia, please visit Ezega Ethiopian Real Estate.

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