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Yes, the analysis of Addis Ababa's property market is included in our pack
Thinking about buying a 3-bedroom apartment in Bole? It’s a great area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other neighborhoods like Kazanchis or Sarbet where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Addis Ababa Property Pack.
Will property prices increase in Addis Ababa in 2025?
Yes, property prices in Addis Ababa are expected to rise in 2025, driven by a combination of economic growth and urban development initiatives.
Backed by our fresh, in-depth market analysis, we’re confident that Addis Ababa remains a key city for both domestic and international investors looking for growth opportunities in Africa.
While there are challenges such as inflation and political uncertainties, the main drivers behind Addis Ababa’s price growth are strong and persistent.
The demand for housing, especially in newly developed areas, continues to outpace supply, making significant price drops unlikely. Additionally, Addis Ababa's role as a political and economic hub in the region continues to attract both local and foreign buyers.
Signals pointing to a property price increase in Addis Ababa
Here are some factors suggesting prices could increase:
The Ethiopian government’s ongoing infrastructure projects, including road expansions and public transport improvements, are expected to enhance connectivity in Addis Ababa, making certain areas more attractive and likely increasing property values.
The rapid urbanization and population growth in Addis Ababa are driving demand for housing, particularly in the city’s expanding suburbs, which is expected to push property prices upward.
Foreign investment in the real estate sector is anticipated to grow, with international developers showing increased interest in Addis Ababa, leading to higher property prices as demand from expatriates and investors rises.
The government’s focus on economic reforms and attracting foreign direct investment is expected to boost economic growth, increasing the purchasing power of potential homebuyers and driving up property prices.
The development of new commercial and business districts is likely to increase the demand for nearby residential properties, as professionals seek housing close to their workplaces, thereby raising property values in those areas.
The introduction of new housing policies aimed at improving affordability and accessibility is expected to stimulate the housing market, increasing demand and potentially driving up prices.
The cultural and historical significance of Addis Ababa continues to attract tourists and expatriates, increasing demand for short-term rental properties and boosting property prices in popular areas.
Signals pointing to a property price decrease in Addis Ababa
Here are some factors suggesting prices could fall:
Political instability and uncertainties could deter potential investors and buyers, leading to a slowdown in the real estate market and potential price decreases.
High inflation rates could erode the purchasing power of potential homebuyers, reducing demand and putting downward pressure on property prices.
Rising construction costs, driven by increased prices for materials and labor, could slow down new developments, potentially leading to a temporary oversupply in certain areas and a decrease in property prices.
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If property prices go up in Addis Ababa, how much would they increase by?
If real estate prices in Addis Ababa were to rise in 2025, the increase would likely be around 7% to 10% of their 2024 values.
Typically, real estate in emerging markets like Addis Ababa appreciates by approximately 5% to 10% annually over the long term. However, fluctuations can occur depending on factors such as region, season, and property type.
It means that, if you spot a lovely 2-bedroom apartment in Bole for 3,000,000 ETB today, don't be surprised if it's priced between 3,210,000 and 3,300,000 ETB this time next year.
To give you a better understanding, here is a table that shows 7 types of Addis Ababa real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 5%, 7%, and 10%.
| Type of Property | Average Price in 2024 (ETB) | Price in 2025 (5% increase) | Price in 2025 (7% increase) | Price in 2025 (10% increase) |
|---|---|---|---|---|
| Apartment (60 sqm / 646 sqft) | 3,000,000 ETB | 3,150,000 ETB | 3,210,000 ETB | 3,300,000 ETB |
| Modern Apartment (75 sqm / 807 sqft) | 4,500,000 ETB | 4,725,000 ETB | 4,815,000 ETB | 4,950,000 ETB |
| Luxury Penthouse (100 sqm / 1,076 sqft) | 10,000,000 ETB | 10,500,000 ETB | 10,700,000 ETB | 11,000,000 ETB |
| Studio (30 sqm / 323 sqft) | 1,500,000 ETB | 1,575,000 ETB | 1,605,000 ETB | 1,650,000 ETB |
| Loft (80 sqm / 861 sqft) | 5,000,000 ETB | 5,250,000 ETB | 5,350,000 ETB | 5,500,000 ETB |
| Townhouse (150 sqm / 1,615 sqft) | 12,000,000 ETB | 12,600,000 ETB | 12,840,000 ETB | 13,200,000 ETB |
| Investment Property (50 sqm / 538 sqft) | 2,500,000 ETB | 2,625,000 ETB | 2,675,000 ETB | 2,750,000 ETB |
Everything you need to know is included in our Property Pack for Addis Ababa
If real estate prices go up in Addis Ababa, which areas are likely to see the biggest increases?
Today, people who want to move to Addis Ababa seek a blend of cultural heritage and modern amenities, which Bole offers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Yeka has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Addis Ababa market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Bole | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Kazanchis | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Addis Ababa. |
| Piassa | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Cazanchise | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Gerji | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Arat Kilo | Medium | Investment in local infrastructure, such as the extension of tram lines and renovation of historic areas, is boosting long-term value. |
| Megenagna | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Yeka | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Lebu | Medium-High | Its proximity to central Addis Ababa, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Gullele | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Old Airport | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Merkato | High | Upcoming restoration and high-profile cultural projects are driving a renewed focus on this central, historic location. |
-The best areas to buy a property in Addis Ababa
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Addis Ababa?
In 2025, Addis Ababa real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.
- Family-Sized Apartments in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near Addis Ababa are seeing increased interest. Proximity to green spaces and schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In dense cities like Addis Ababa, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Addis Ababa's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the city’s green goals, leading to price appreciation in this category.
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