No question that real estate is booming in Addis Ababa and many other major cities and towns in Ethiopia. Both domestic investors, Ethiopians returning from abroad, and foreign investors have infused a large sum of money to this sector. As a result, in cities like Addis Ababa and Gondar, it is almost impossible not to see ne buildings rising at every corner of the cities.
No question that the real estate boom in Ethiopia is acting as an engine of economic growth and has created unprecedented opportunities for many of our citizens i.e. it has created several jobs and a good market for building material suppliers such as Addis Agents. It has also created a great opportunity to members of the Ethiopian Diaspora, who wish to own real estate in Ethiopia or hold shares in one of the major real estate companies.
However, we believe that there are several weaknesses in the sector. In some cases, building material suppliers cannot even cope with the increasing demand for building materials; electricity is terminated sometimes; water is terminated at other times. All of these halt construction, which in turn slow down the rate at which both giant developers and small builders finish their projects.
No doubt that these developers and builders incur tremendeous amount of cost as a result of these conditions. It must also noted that the negative effect of "the project stagination" is not limmitted to developers or builders alone. The general public is also affected one way or another way.
What do you think should be done to improve the situation?
Note: Memebers of Addis Agents are planning to write an article addressing this issue and would like to include your inputs in the article. If you would like to reach us directly, click on the link below.
Keep the good ideas flow!
Dereje (Addis Agents rep. in North America)
The housing market boom looks good for the time being and higly infliated. I will predict the higher priced housing market never sustain for long term and many of them investing on housing market will going to file bankcruptcy sooner or later. It would have been much better if one can design a strategy which lead to the fair priced housing market which will stay for longer period of time. The housing market has to depend on the local citizen as it basic customer rather than the here and there diaspora.
I have lukewarm feeling with the progress in housing market in Ethiopia after I have assessed the price range and the housing design itself. In fact I will admit that the progress is encouraging but looks evanescent!!
