Renting Condominium in Addis Ababa: how the demand and rent are changing

Renting a condo in Addis Ababa has become very trendy among young professionals and small business owners alike in recent years for the sake of “privacy” and the “freedom” one hopes to have by leasing an apartment instead of renting a living quarter, where they have to share a compound with their landlords. Most young people don’t like the idea of being constantly watched by naggy and grumpy landlords, who like to police every movement of their tenants. We have all heard of crazy stories when it comes to landlord behaviours. Some landlords impose strict curfew on their tenants; others knock on your door and tell you to put out the lights even before it is midnight; some show you their displeasure when you invite friends over. Considering these kinds of behavioural problems that are prevalent among Ethiopian landlords, young people are absolutely right for wanting to rent apartments in Addis Ababa. However, the rapid rise in apartment rental prices in Addis Ababa is posing serious challenges for such residents of Addis. There is no way that the supply can catch up with the rapidly growing demand for condominiums, which is pushing the rent up year after year.

The city government of Addis Ababa launched a mass housing construction project at the turn of the 21st century and has managed to build only less than half a million units so far. Considering the rapid population growth and the ever-increasing demand of housing in Addis Ababa, this number is almost laughable. One can argue that the city government has failed quite miserably in fulfilling its promises to the residents of the Ethiopian capital. There are people who were registered to benefit from the housing program back in 2004/2005 and have been saving eversince but have not received the deeds for the condo they were hoping to possess till this day. A good number of people, who felt their hopes of owning a condominium in Addis Ababa through the government housing program have been dashed, have already cashed out their savings and left the housing program. Some did it because saving for the program and renting a house in Addis Ababa at the same time felt a never-ending struggle they could no longer bear. Others decided to abandon the program and withdrew their savings to pursue other alternatives being offered by private real estate developers, which are building apartment blocks across Addis Ababa at a much faster pace. Still others felt that they had to cash out to invest their savings in starting a small business instead of letting their money sit in a blocked account indefinitely.

Unless the city government’s new initiative to get both foreign and domestic private developers engage in “affordable” housing schemes delivers satisfactory results, the city will surely face a serious housing crisis very soon. The young people who want to enjoy the benefits of living in condominiums will suffer the most. The rent of condominiums in Addis Ababa has already increased quite significantly in recent times. Below is the current average rent of condominium units in the suburbs of Addis Ababa. Rent near the city center is much higher. To see actual options, feel free to visit this listing site.

Studio: 5,000 to 6,000 Birr

1 bedroom: 7,000 – 7,500 Birr

2 bedroom: 8,500 – 9,500 Birr

3 bedroom: 11,000 – 12,000 Birr

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This article was contributed by Dereje Mengistu, the co-founder of Ethiopian Properties: https://www.ethiopianproperties.com/