Authored by the expert who managed and guided the team behind the Ethiopia Property Pack
Yes, the analysis of Addis Ababa's property market is included in our pack
If you're a foreigner thinking about buying an apartment in Addis Ababa, you're probably wondering how much it will actually cost you.
This article breaks down everything from average prices per square meter to neighborhood comparisons, closing costs, and ongoing expenses, so you can plan your budget with confidence.
We constantly update this blog post to reflect the latest market data and inflation trends in Ethiopia.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Addis Ababa.
Insights
- Ethiopia's inflation dropped to 9.7% in December 2025, the first single-digit reading in seven years, which could slow the pace of apartment price increases in Addis Ababa going forward.
- Addis Ababa's price-to-income ratio stands at 56.0, the highest in Africa, meaning the average local worker would need 56 years of income to buy a typical apartment without a mortgage.
- Closing costs in Addis Ababa can effectively be lower than the stated 6% rate because taxes are calculated on official government valuations, which are often 40-50% below actual market prices.
- The Bole neighborhood commands prices 2 to 3 times higher than outer areas like Lebu or Ayat, making location the single biggest price driver in Addis Ababa's apartment market.
- One-bedroom apartments in Addis Ababa showed the steepest price growth at 35% during 2023-2024, outpacing larger units due to strong demand from young professionals and investors.
- Ethiopia's shift to a market-based exchange rate in July 2024 caused the birr to lose about 24% against the dollar over 12 months, making imported construction materials more expensive and pushing new-build apartment prices higher.
- New apartment buildings in Addis Ababa with backup power, water storage, and elevators sell for 10-25% more than comparable older units because utility reliability varies widely across the city.
- Foreigners can now legally own residential property in Ethiopia under the 2025 proclamation, but government-subsidized condominiums remain off-limits to non-citizens.
How much do apartments really cost in Addis Ababa in 2026?
What's the average and median apartment price in Addis Ababa in 2026?
As of January 2026, the average apartment price in Addis Ababa is around 15.9 million ETB (approximately $103,000 or €88,000), while the median sits closer to 14.5 million ETB (around $94,000 or €80,000).
When looking at price per square meter, the average in Addis Ababa in January 2026 is about 165,000 ETB per square meter ($1,065/sqm or €910/sqm), with the median slightly lower at roughly 160,000 ETB per square meter ($1,030/sqm or €885/sqm), which translates to about 15,300 ETB per square foot ($99/sqft or €85/sqft).
The typical price range that covers most standard apartments in Addis Ababa in 2026 falls between 120,000 and 230,000 ETB per square meter ($775-$1,485/sqm or €665-$1,270/sqm), though prices can stretch from 95,000 ETB in outer neighborhoods to 300,000 ETB in prime Bole locations.
How much is a studio apartment in Addis Ababa in 2026?
As of January 2026, a typical studio apartment in Addis Ababa costs around 9.2 million ETB (approximately $59,000 or €51,000).
For entry-level to mid-range studio apartments in Addis Ababa, expect to pay between 7.5 million and 10 million ETB ($48,000-$65,000 or €41,000-€55,000), while high-end studio apartments in premium locations like Bole can reach 12-15 million ETB ($77,000-$97,000 or €66,000-€83,000).
Studio apartments in Addis Ababa typically range from 35 to 50 square meters, with most units in newer buildings averaging around 40-45 square meters.
How much is a one-bedroom apartment in Addis Ababa in 2026?
As of January 2026, a typical one-bedroom apartment in Addis Ababa costs around 10.3 million ETB (approximately $66,000 or €57,000).
Entry-level to mid-range one-bedroom apartments in Addis Ababa range from 7.5 million to 12 million ETB ($48,000-$77,000 or €41,000-€66,000), while luxury one-bedroom units in Bole or Kazanchis can reach 15-18 million ETB ($97,000-$116,000 or €83,000-€100,000).
One-bedroom apartments in Addis Ababa typically measure between 45 and 65 square meters, with the average unit around 50-55 square meters in most newer developments.
How much is a two-bedroom apartment in Addis Ababa in 2026?
As of January 2026, a typical two-bedroom apartment in Addis Ababa costs around 17 million ETB (approximately $110,000 or €94,000).
Entry-level to mid-range two-bedroom apartments in Addis Ababa fall between 14 million and 21 million ETB ($90,000-$135,000 or €77,000-€116,000), while high-end two-bedroom units in premium Bole compounds can exceed 25-35 million ETB ($161,000-$226,000 or €138,000-€193,000).
By the way, you will find much more detailed price ranges for apartments in our property pack covering the real estate market in Addis Ababa.
How much is a three-bedroom apartment in Addis Ababa in 2026?
As of January 2026, a typical three-bedroom apartment in Addis Ababa costs around 26 million ETB (approximately $168,000 or €144,000).
Entry-level to mid-range three-bedroom apartments in Addis Ababa range from 21 million to 34 million ETB ($135,000-$219,000 or €116,000-€188,000), while luxury three-bedroom units in prime Bole or Kazanchis locations can reach 45-60 million ETB ($290,000-$387,000 or €249,000-€332,000) or more.
Three-bedroom apartments in Addis Ababa typically measure between 100 and 140 square meters, with most family-sized units in modern buildings averaging around 115-120 square meters.
What's the price gap between new and resale apartments in Addis Ababa in 2026?
As of January 2026, new-build apartments in Addis Ababa typically sell for 10% to 25% more than comparable resale units in the same neighborhood, with the biggest premiums in Bole-area compounds.
The average price per square meter for new-build apartments in Addis Ababa in 2026 is around 185,000-210,000 ETB ($1,190-$1,355/sqm or €1,020-€1,160/sqm), depending on location and amenities like backup power and elevator service.
Resale apartments in Addis Ababa average around 145,000-165,000 ETB per square meter ($935-$1,065/sqm or €800-€910/sqm), though well-maintained units in desirable locations can command prices closer to new-build levels.
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Can I afford to buy in Addis Ababa in 2026?
What's the typical total budget (all-in) to buy an apartment in Addis Ababa in 2026?
As of January 2026, a typical all-in budget to buy a standard two-bedroom apartment in Addis Ababa is around 18-19 million ETB (approximately $116,000-$123,000 or €100,000-€105,000), including purchase price and all associated costs.
Beyond the purchase price, your all-in budget in Addis Ababa should include closing costs (6-8% of market price), legal and notary fees (0.5-2%), agent commissions (around 2%), and move-in costs for basic furniture and minor repairs (300,000-1.5 million ETB depending on your needs).
We go deeper and try to understand what costs can be avoided or minimized (and how) in our Addis Ababa property pack.
You can also read our dedicated blog article to understand what you can at different budget levels in Addis Ababa.
What down payment is typical to buy in Addis Ababa in 2026?
As of January 2026, a typical down payment for an apartment in Addis Ababa is around 30-50% of the purchase price, which for a 17 million ETB two-bedroom apartment means roughly 5-8.5 million ETB ($32,000-$55,000 or €28,000-€47,000).
Most Ethiopian banks require a minimum down payment of 20-30% for local buyers with diaspora accounts, though foreigners often find financing options limited and end up paying 50-100% in cash.
To secure more favorable mortgage terms with lower interest rates in Addis Ababa, a down payment of 40-50% or higher is generally recommended, as this reduces the bank's risk and can help you negotiate better conditions.
You can also read our latest update about mortgage and interest rates in Ethiopia.
We made this infographic to show you how property prices in Ethiopia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
Which neighborhoods are cheapest or priciest in Addis Ababa in 2026?
How much does the price per m² for apartments vary by neighborhood in Addis Ababa in 2026?
As of January 2026, the price per square meter for apartments in Addis Ababa ranges dramatically from about 95,000 ETB ($615/sqm or €525/sqm) in outer neighborhoods to over 300,000 ETB ($1,935/sqm or €1,660/sqm) in prime central locations.
The most affordable neighborhoods in Addis Ababa for apartments in 2026 include Lebu, Ayat, Jemo, and Akaki Kality, where prices typically range from 95,000 to 150,000 ETB per square meter ($615-$970/sqm or €525-€830/sqm).
The most expensive neighborhoods in Addis Ababa for apartments in 2026 are Bole (especially Old Airport and Atlas areas), Kazanchis, and prime Kirkos, where prices typically range from 220,000 to 300,000 ETB per square meter ($1,420-$1,935/sqm or €1,215-€1,660/sqm).
By the way, we've written a blog article detailing what are the current best areas to invest in property in Addis Ababa.
What neighborhoods are best for first-time buyers on a budget in Addis Ababa in 2026?
As of January 2026, the top three neighborhoods for first-time buyers on a budget in Addis Ababa are Ayat, Lebu, and Jemo, all offering significantly lower prices than central areas like Bole or Kazanchis.
In these budget-friendly neighborhoods, apartment prices typically range from 7.5 million to 15 million ETB ($48,000-$97,000 or €41,000-€83,000) for one to two-bedroom units, compared to 15-25 million ETB or more in premium locations.
These neighborhoods offer advantages like newer construction (many buildings are under 10 years old), proximity to the expanding light rail network, and growing commercial amenities including supermarkets and local restaurants.
The main trade-off when buying in these budget-friendly areas is the longer commute to central Addis Ababa, which can range from 45 minutes to over an hour during peak traffic, and sometimes less reliable utility services compared to established central neighborhoods.
Which neighborhoods have the fastest-rising apartment prices in Addis Ababa in 2026?
As of January 2026, the neighborhoods with the fastest-rising apartment prices in Addis Ababa are Bole (especially Atlas and Rwanda areas), CMC/Megenagna in Yeka, and select new compound clusters near Ayat that are benefiting from infrastructure improvements.
These fast-appreciating neighborhoods have seen estimated year-over-year price increases of 15-25% in nominal ETB terms during 2024-2025, outpacing the citywide average of around 12% annual appreciation.
The main drivers behind this rapid price growth include proximity to Bole International Airport for expat-friendly Bole areas, improving road infrastructure and light rail access for CMC/Megenagna, and new premium development projects attracting diaspora buyers to emerging areas.
You can also read our latest update about property price forecasts in Addis Ababa.
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What extra costs will I pay on top of the apartment price in Addis Ababa in 2026?
What are all the buyer closing costs when you buy an apartment in Addis Ababa?
The estimated total buyer closing cost for a typical apartment purchase in Addis Ababa is around 1-1.5 million ETB ($6,500-$9,700 or €5,500-€8,300) on a 17 million ETB property, representing roughly 6-8% of the market price.
The main categories of closing costs buyers must pay in Addis Ababa include stamp duty (2-6% depending on how it's split with seller), the city transfer fee known as "Ashura" (4%), registration and document processing fees, legal and notary fees (0.5-2%), and real estate agent commissions (typically 2%).
The largest single closing cost for buyers in Addis Ababa is typically the combined stamp duty and Ashura transfer fee, which together can amount to 4-6% of the property value, though much of this is calculated on official government valuations rather than actual market prices.
Agent commissions and legal fees are generally negotiable in Addis Ababa, and first-time buyers can sometimes reduce these costs by working directly with developers or using a trusted local contact for property searches.
On average, how much are buyer closing costs as a percentage of the purchase price for an apartment in Addis Ababa?
The estimated typical percentage of the purchase price that buyers should budget for closing costs in Addis Ababa is around 6-8% of the market value.
The realistic range that covers most standard transactions in Addis Ababa is 4% to 10%, with the lower end applying when taxes are calculated purely on official valuations (which are often 40-50% below market) and the higher end when you include comprehensive legal services, VAT on new developer properties, and full agent commissions.
We actually cover all these costs and strategies to minimize them in our pack about the real estate market in Addis Ababa.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Ethiopia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What are the ongoing monthly and yearly costs of an apartment in Addis Ababa in 2026?
What are typical HOA fees in Addis Ababa right now?
HOA fees (often called service charges or building maintenance fees) are common in Addis Ababa apartment buildings, and typical monthly fees range from 500 to 5,000 ETB ($3-$32 or €3-€28) for basic buildings without many amenities.
In Addis Ababa, HOA fees vary dramatically based on building services: basic older buildings with just security and cleaning charge 200-1,000 ETB monthly ($1-$6 or €1-€6), while modern compounds with 24/7 security, backup generators, water storage, elevators, and green spaces can charge 5,000-15,000 ETB or more per month ($32-$97 or €28-€83).
What utilities should I budget monthly in Addis Ababa right now?
The estimated total monthly utility cost for a typical two-bedroom apartment in Addis Ababa is around 800-1,500 ETB ($5-$10 or €4-€8), though this can vary significantly based on usage and whether you need backup services.
Monthly utility costs in Addis Ababa realistically range from 550 ETB ($4 or €3) for a small, energy-efficient unit to 2,500 ETB or more ($16 or €14) for larger apartments with heavy electricity use or supplementary water delivery services.
Utilities included in a typical monthly budget in Addis Ababa are electricity (billed through the tiered EEU tariff system), water and sewerage (billed by AAWSA), and sometimes internet/telecom, though many buildings include some services in HOA fees.
Electricity tends to be the most expensive utility for apartment owners in Addis Ababa, particularly if you run air conditioning, electric heating, or heavy appliances, with bills ranging from 400-1,500 ETB monthly depending on consumption tier.
How much is property tax on apartments in Addis Ababa?
The estimated typical annual property tax for a standard apartment in Addis Ababa is around 50,000-170,000 ETB ($320-$1,100 or €275-€940), based on the city's rental value assessment methodology.
Property tax in Addis Ababa is calculated using a formula based on the property's assessed rental value: typically the floor area multiplied by an official rent-per-square-meter figure, then multiplied by 12 months and a tax rate, rather than a simple percentage of market value.
The realistic range of annual property tax in Addis Ababa is roughly 0.3% to 1.0% of the apartment's market value per year, meaning a 17 million ETB apartment might pay anywhere from 50,000 to 170,000 ETB annually depending on the sub-city's assessment practices.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Addis Ababa.
What's the yearly building maintenance cost in Addis Ababa?
The estimated typical yearly building maintenance cost for apartment owners in Addis Ababa is around 20,000-120,000 ETB ($130-$775 or €110-€665), covering items not included in HOA fees.
The realistic range of yearly maintenance costs in Addis Ababa is 20,000 ETB for newer, well-managed buildings to 200,000 ETB or more ($1,290 or €1,105) for older buildings that require frequent repairs to plumbing, electrical systems, or interior finishes.
Typical expenses included in building maintenance costs in Addis Ababa are interior plumbing repairs, electrical fixes, repainting, appliance replacements, and occasional special assessments when elevators or generators need major work.
In Addis Ababa, building maintenance costs are generally separate from HOA fees, which cover shared services like security and common area cleaning, though some well-organized buildings include a reserve fund within the HOA structure for major repairs.
How much does home insurance cost in Addis Ababa?
The estimated typical annual home insurance cost for an apartment in Addis Ababa is around 15,000-50,000 ETB ($97-$320 or €83-€275), depending on the insured value and coverage level.
The realistic range of annual home insurance costs in Addis Ababa is roughly 0.10% to 0.30% of the insured property value per year, so insuring a 17 million ETB apartment would cost approximately 17,000-51,000 ETB annually for standard fire and allied perils coverage.
Home insurance is generally optional for apartment owners in Addis Ababa, but it's strongly recommended, particularly for coverage against fire, water damage, and electrical faults, which are relevant risks given the city's variable utility infrastructure.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Addis Ababa, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Miles Africa Residential Market Report H2 2023 | A specialist real estate research firm publishing structured market reports with disclosed price ranges and unit-type averages. | We used it as our anchor dataset for Addis Ababa apartment prices by bedroom type and per square meter. We then updated these 2023 figures to 2026 using official inflation data. |
| Ethiopian Statistical Service (ESS) | Ethiopia's official national statistics agency publishing the country's CPI and inflation releases. | We used ESS inflation data (December 2024: 17.0%, December 2025: 9.7%) to update 2023 price benchmarks into 2026 birr terms. |
| Trading Economics Ethiopia Inflation | A financial data aggregator that directly attributes inflation figures to ESS and is easy to verify. | We used it as a quick verification mirror for ESS inflation numbers. We do not treat it as primary; ESS remains our source of record. |
| Birr Metrics | A specialized Ethiopian financial publication discussing exchange rate dynamics and economic policy. | We used it to explain why foreigners should budget with an FX cushion and to show apartment costs in both ETB and USD with realistic conversion assumptions. |
| Dablo Law Firm | A law firm explainer that clearly describes Addis Ababa's fixed-price valuation methodology for transaction taxes. | We used it to explain how taxes are calculated on official valuations rather than market prices, and to estimate effective closing cost percentages. |
| National Bank of Ethiopia (NBE) | Ethiopia's financial regulator and primary source for banking and insurance directives. | We used it to ground statements about insurance being regulated and to point readers toward official verification for mortgage and FX guidelines. |
| Ethiopian Electric Utility (EEU) | The utility company's official tariff page showing how residential electricity is priced. | We used it to explain tiered electricity billing and estimate realistic monthly utility costs for Addis Ababa apartments. |
| Addis Ababa Water & Sewerage Authority (AAWSA) | The city utility's official page for water and sewer tariffs in Addis Ababa. | We used it to confirm that water charges follow official tariffs and to provide practical monthly budgeting ranges. |
| Ethiopian Insurance Corporation (EIC) | Ethiopia's state-owned dominant insurer providing baseline product descriptions for local coverage. | We used it to explain what home and contents insurance typically covers in Ethiopia and to provide a practical shopping checklist. |
| Ethiopia Property Centre | A major Ethiopian property listing aggregator with thousands of current apartment listings. | We used it to verify price ranges against live market data and to cross-check our inflation-adjusted estimates. |
| The Africanvestor Housing Prices | A specialized real estate analysis platform focused on African markets with regularly updated data. | We used it to verify January 2026 price estimates and neighborhood-level pricing variations. |
| Live Ethio Real Estate | A local real estate consultancy publishing guides for diaspora and foreign buyers. | We used it to verify buying process steps, closing cost categories, and neighborhood characteristics. |
| DMR Law Firm | A legal firm explaining Addis Ababa's urban house tax calculation methodology. | We used it to explain how property tax is calculated based on rental value rather than market value. |
| World Bank Data | The World Bank curates standardized macro data from official and IMF sources. | We used it as a secondary cross-check that Ethiopia's inflation trend is consistent with ESS releases. |
| Exchange-Rates.org | A currency data provider aggregating real-time exchange rates from multiple sources. | We used it to convert ETB prices into USD and EUR using January 2026 exchange rates. |
| Addis Fortune | A long-running Ethiopian business newspaper reporting on policy and economic developments. | We used it to flag that rules around foreigners owning property are evolving and require verification. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Ethiopia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
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