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SUMMARY
We analyzed apartment rental yields in Addis Ababa, as of 2026, for residential apartment buyers, using the raw dataset provided and turning it into a practical buyer guide for May 2026.
The work compares estimated apartment purchase prices, monthly rents, gross rental yields, and net rental yields across key Addis Ababa neighborhoods and apartment sizes.
This page is updated regularly, so the numbers should be read as a current Addis Ababa apartment yield snapshot rather than a fixed forecast.
The main finding is clear: studios usually produce the strongest rental yields in Addis Ababa because the entry price is much lower than for 2-bedroom apartments, while monthly rent stays relatively efficient.
The strongest estimated studio net yields appear in Ayat at 6.4%, Jemo at 6.2%, Mexico at 6.2%, Arada / Piassa at 6.1%, and Bole at 6.0%.
For 1-bedroom apartments, the best balance appears in Ayat, Jemo, Kazanchis, Bole, Lebu, and Mexico, where estimated net yields range from about 5.3% to 5.5%.
The weakest pure-yield profiles are mostly in Summit, CMC 2-bedrooms, Sarbet 2-bedrooms, and some large premium apartments in Old Airport and Bole. These areas can still be livable, but the purchase price absorbs much of the rent.
Bole remains the strongest stability market because tenant demand is deep. The dataset notes that Bole accounted for 32.5% of Addis Ababa rental-search demand in April 2026, far ahead of other areas.
For a beginner foreign buyer, the practical strategy is not to chase the cheapest apartment. The safer approach is to compare net yield, tenant depth, building quality, maintenance risk, vacancy risk, and resale liquidity together.
The honest interpretation is that Addis Ababa offers attractive birr-denominated rental yields in several areas, but the spread between a good investment and a risky one depends heavily on neighborhood, unit size, building management, and realistic rent assumptions.
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Neighborhoods and apartment rental yields in Addis Ababa in 2026
This table compares apartment rental yields in Addis Ababa by neighborhood and apartment type.
For each area, the table shows estimated purchase price, estimated monthly rent, gross rental yield, and net rental yield for studios, 1-bedroom apartments, and 2-bedroom apartments.
Finally, please note you'll find much more detailed data in our real estate pack about Addis Ababa.
| Neighborhood | Studio average purchase price | Studio average monthly rent | Studio gross rental yield | Studio net rental yield | 1-bedroom average purchase price | 1-bedroom average monthly rent | 1-bedroom gross rental yield | 1-bedroom net rental yield | 2-bedroom average purchase price | 2-bedroom average monthly rent | 2-bedroom gross rental yield | 2-bedroom net rental yield |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Arada / Piassa | ETB 5,200,000 | ETB 35,000 | 8.1% | 6.1% | ETB 8,500,000 | ETB 50,000 | 7.1% | 5.1% | ETB 13,000,000 | ETB 65,000 | 6.0% | 4.0% |
| Ayat | ETB 5,400,000 | ETB 38,000 | 8.4% | 6.4% | ETB 8,800,000 | ETB 55,000 | 7.5% | 5.5% | ETB 13,500,000 | ETB 75,000 | 6.7% | 4.7% |
| Bole | ETB 10,200,000 | ETB 70,000 | 8.2% | 6.0% | ETB 16,600,000 | ETB 105,000 | 7.6% | 5.4% | ETB 25,500,000 | ETB 155,000 | 7.3% | 5.1% |
| CMC | ETB 7,400,000 | ETB 45,000 | 7.3% | 5.2% | ETB 12,000,000 | ETB 70,000 | 7.0% | 4.9% | ETB 18,500,000 | ETB 100,000 | 6.5% | 4.4% |
| Gerji | ETB 6,800,000 | ETB 42,000 | 7.4% | 5.3% | ETB 11,000,000 | ETB 65,000 | 7.1% | 5.0% | ETB 17,000,000 | ETB 90,000 | 6.4% | 4.3% |
| Jemo | ETB 4,400,000 | ETB 30,000 | 8.2% | 6.2% | ETB 7,200,000 | ETB 45,000 | 7.5% | 5.5% | ETB 11,000,000 | ETB 65,000 | 7.1% | 5.1% |
| Kazanchis | ETB 9,000,000 | ETB 60,000 | 8.0% | 5.7% | ETB 14,600,000 | ETB 95,000 | 7.8% | 5.5% | ETB 22,500,000 | ETB 135,000 | 7.2% | 4.9% |
| Lebu | ETB 4,800,000 | ETB 32,000 | 8.0% | 6.0% | ETB 7,800,000 | ETB 48,000 | 7.4% | 5.4% | ETB 12,000,000 | ETB 68,000 | 6.8% | 4.8% |
| Mexico | ETB 5,800,000 | ETB 40,000 | 8.3% | 6.2% | ETB 9,400,000 | ETB 58,000 | 7.4% | 5.3% | ETB 14,500,000 | ETB 78,000 | 6.5% | 4.4% |
| Old Airport | ETB 9,400,000 | ETB 60,000 | 7.7% | 5.4% | ETB 15,300,000 | ETB 95,000 | 7.5% | 5.2% | ETB 23,500,000 | ETB 145,000 | 7.4% | 5.1% |
| Sarbet | ETB 8,200,000 | ETB 52,000 | 7.6% | 5.3% | ETB 13,300,000 | ETB 80,000 | 7.2% | 4.9% | ETB 20,500,000 | ETB 120,000 | 7.0% | 4.7% |
| Summit | ETB 6,200,000 | ETB 36,000 | 7.0% | 4.9% | ETB 10,100,000 | ETB 55,000 | 6.5% | 4.4% | ETB 15,500,000 | ETB 80,000 | 6.2% | 4.1% |
We have made this infographic to give you a quick and clear snapshot of the property market in Ethiopia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which neighborhoods offer the best net yield among areas people actually want to live in Addis Ababa?
The best net-yield neighborhoods among areas people actually want to live in Addis Ababa are Ayat, Mexico, Bole, Kazanchis, and Gerji.
Ayat is the strongest simple yield case in the dataset. Its studio apartment is estimated at ETB 5.4 million, rents for ETB 38,000 per month, and produces about 6.4% net yield.
Mexico is also attractive because the rent-to-price relationship is strong in a central location. Its studio apartment is estimated at ETB 5.8 million, with ETB 40,000 monthly rent and a 6.2% net yield.
Bole is more expensive, but its demand depth makes the yield more credible. The dataset notes that Bole accounted for 32.5% of Addis Ababa rental-search demand in April 2026, which supports the area even when entry prices are high.
Kazanchis works best for professional and office-linked renters. Its 1-bedroom apartment is estimated at ETB 14.6 million, rents for ETB 95,000 per month, and produces about 5.5% net yield.
Gerji is the practical middle option. It does not have Bole's prestige, but a studio at ETB 6.8 million with ETB 42,000 monthly rent gives about 5.3% net yield, which is useful for buyers who want access without paying the full Bole premium.
Where can I find apartments with above-average yields and below-average entry prices in Addis Ababa?
The clearest Addis Ababa areas with above-average yields and below-average entry prices are Ayat, Jemo, Lebu, Mexico, and Gerji.
Jemo has the lowest studio entry price in the dataset, at ETB 4.4 million. That studio rents for about ETB 30,000 per month and produces an estimated 6.2% net yield.
Lebu is another low-entry option. A studio is estimated at ETB 4.8 million, with ETB 32,000 monthly rent and a 6.0% net yield.
Ayat is slightly more expensive than Jemo and Lebu, but the rent support is stronger. The estimated 1-bedroom purchase price is ETB 8.8 million, with ETB 55,000 monthly rent and a 5.5% net yield.
Mexico is the best central-value case because it is not only cheap. It also gives renters practical city access, which makes the ETB 40,000 studio rent more credible than a similar rent in a weaker fringe location.
The practical takeaway is simple: in Addis Ababa, a low purchase price is useful only when the area still has renters. Ayat, Mexico, and Gerji look safer than very cheap stock in weaker pockets because their demand drivers are clearer.
Where does the rent level justify the purchase price most clearly in Addis Ababa?
The rent level most clearly justifies the purchase price in Mexico, Ayat, Kazanchis, Gerji, and Bole studios or 1-bedroom apartments.
Mexico is the cleanest rent-to-price example. A studio at ETB 5.8 million with ETB 40,000 monthly rent produces an estimated 8.3% gross yield and 6.2% net yield.
Ayat also looks rational. A 1-bedroom apartment at ETB 8.8 million and ETB 55,000 monthly rent gives a 7.5% gross yield and 5.5% net yield.
Kazanchis looks expensive at first glance, but the rent helps justify the capital required. Its 1-bedroom apartment is estimated at ETB 14.6 million and ETB 95,000 monthly rent, equal to 7.8% gross yield and 5.5% net yield.
Bole is different because buyers pay for tenant liquidity. A Bole 2-bedroom is estimated at ETB 25.5 million and ETB 155,000 monthly rent, but the 5.1% net yield is supported by the city's deepest rental-search demand.
Old Airport is less rent-rational for pure yield investors. A 2-bedroom there produces about 5.1% net yield, but the ETB 23.5 million entry price means the buyer is paying heavily for stability, prestige, and resale confidence.
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Where is the best place to buy if I want stable rental income rather than maximum yield in Addis Ababa?
The best places to buy for stable rental income rather than maximum yield in Addis Ababa are Bole, Old Airport, Kazanchis, Sarbet, and Gerji.
Bole is the strongest stability market because it has the deepest visible rental demand in the dataset. Its 32.5% rental-search share in April 2026 is a major signal for vacancy risk.
Old Airport is stable for a different reason. It appeals to higher-income family renters, diplomatic demand, and buyers who care about quiet streets, schools, and long-term resale.
Kazanchis is the strongest central business-district option. A 1-bedroom apartment there rents for about ETB 95,000 per month, which reflects demand from offices, hotels, institutions, and professional renters.
Sarbet is more of a stability play than a maximum-yield play. Its 1-bedroom net yield is estimated at 4.9%, but it benefits from central-western access, embassies, schools, and the African Union side of the city.
For a beginner buyer, the practical choice is not always the highest yield. A slightly lower yield in Bole, Old Airport, or Sarbet can be worth it if it reduces vacancy, tenant turnover, and resale risk.
Which apartment type gives the best return for the lowest total investment in Addis Ababa?
The apartment type that gives the best return for the lowest total investment in Addis Ababa is usually the studio apartment.
The dataset is very clear on this. Studios in Ayat, Jemo, Mexico, Arada / Piassa, Bole, and Lebu all produce estimated net yields of 6.0% or more.
The lowest total investment requirement also belongs to studios. Jemo studios are estimated at ETB 4.4 million, Lebu studios at ETB 4.8 million, and Arada / Piassa studios at ETB 5.2 million.
One-bedroom apartments are the best balance product. They do not always beat studios on yield, but they serve a wider tenant pool, including single professionals, couples, NGO workers, airport workers, and younger households.
Two-bedroom apartments earn higher absolute rent, but the purchase price rises quickly. In Bole, a 2-bedroom apartment is estimated at ETB 25.5 million and 5.1% net yield, while a studio is ETB 10.2 million and 6.0% net yield.
For a foreign individual buyer, the safer beginner format is usually a well-located studio or 1-bedroom apartment, not a large unit that depends on a narrower high-income tenant pool.
We give you more details in the our real estate pack about Addis Ababa.
Which neighborhoods offer strong rental income with the lowest vacancy risk in Addis Ababa?
The neighborhoods that offer strong rental income with lower vacancy risk in Addis Ababa are Bole, Kazanchis, Old Airport, Sarbet, and Gerji.
Bole has the strongest evidence of demand depth. It dominates rental searches in the dataset, and its estimated monthly rents are also high: ETB 70,000 for studios, ETB 105,000 for 1-bedroom apartments, and ETB 155,000 for 2-bedroom apartments.
Kazanchis has strong professional demand. Its estimated 1-bedroom rent is ETB 95,000 per month, which supports a 5.5% net yield despite a high ETB 14.6 million purchase price.
Old Airport works for family and diplomatic demand. A 2-bedroom apartment is estimated at ETB 145,000 per month and 5.1% net yield, but the tenant pool expects better maintenance, parking, security, and building management.
Sarbet offers similar stability on the western side of the city. Its 2-bedroom apartment rents for about ETB 120,000 per month, with a 4.7% net yield, which is moderate but more stable than many outer-area bets.
The honest interpretation is that high rent alone is not enough. Strong rental income is most useful where many renters can actually afford and want that exact location.
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.
Which areas look overpriced relative to their rental income in Addis Ababa?
The areas that look most overpriced relative to rental income in Addis Ababa are Old Airport, Sarbet, CMC 2-bedroom apartments, Summit, and some Bole 2-bedroom apartments.
Old Airport is not a bad area, but the rental-yield case is not the strongest. A 2-bedroom apartment is estimated at ETB 23.5 million and ETB 145,000 monthly rent, producing about 5.1% net yield.
Sarbet is also more convincing for stability than maximum yield. A 2-bedroom apartment at ETB 20.5 million and ETB 120,000 monthly rent gives about 4.7% net yield.
CMC 2-bedroom apartments produce about 4.4% net yield. The area can be livable and family-friendly, but larger units are less efficient when prices rise faster than rents.
Summit is the weakest yield case in the table. Its estimated net yields are 4.9% for studios, 4.4% for 1-bedroom apartments, and 4.1% for 2-bedroom apartments.
Bole is not overpriced as a whole because tenant liquidity is deep. The risk is paying a luxury price for an ordinary large apartment, where rent cannot fully compensate for the premium purchase price.
Which neighborhoods should I avoid even if the rental yield looks attractive in Addis Ababa?
Beginner investors should be cautious with Jemo, Lebu, Arada / Piassa, and lower-quality outer-area stock even when the headline rental yield looks attractive.
Jemo looks strong numerically. A studio is estimated at 6.2% net yield, and a 1-bedroom apartment is estimated at 5.5% net yield.
The risk in Jemo is tenant depth. Demand can be more budget-sensitive than in Bole, Kazanchis, Old Airport, or Gerji, so the apartment must be priced and located carefully.
Lebu also looks good on yield, with a studio net yield of 6.0% and a 1-bedroom net yield of 5.4%. The caution is that weaker prestige and more peripheral positioning can limit rent growth.
Arada / Piassa has centrality and a 6.1% studio net yield, but older building stock, renovation needs, title checks, and redevelopment disruption can matter more than the headline number.
The avoid rule is not to reject entire neighborhoods. The rule is to avoid weak buildings in weaker-demand pockets where the spreadsheet yield is high only because the purchase price is low.
Which neighborhoods look risky even though the rental yield is high in Addis Ababa?
The neighborhoods that look risky even though the rental yield is high in Addis Ababa are Jemo, Lebu, Arada / Piassa, and some Ayat stock.
Jemo shows strong numbers because the entry price is low. Its ETB 4.4 million studio price supports a 6.2% net yield, but the renter pool is more price-sensitive than in Bole or Kazanchis.
Lebu has a similar profile. Its estimated 6.0% studio net yield is attractive, but rent growth depends heavily on commuting convenience, local services, and future accessibility.
Arada / Piassa is a central but more complex market. The studio net yield is estimated at 6.1%, yet older buildings and renovation risk can reduce the real return after repairs.
Ayat is less risky than Jemo or Lebu when the unit is in a good compound. But remote or poorly managed Ayat apartments can struggle because renters compare them with CMC, Summit, and other eastern options.
A safer alternative is Gerji. Its estimated yields are slightly lower than the highest-yield neighborhoods, but airport-corridor access and proximity to Bole create a broader renter base.
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What neighborhoods should I avoid when buying a rental apartment in Addis Ababa?
For a beginner rental investor in Addis Ababa, the avoid list is Jemo, Lebu, Arada / Piassa older stock, Summit large units, and weak pockets of Ayat.
Jemo is not a total avoid, but it should be approached carefully. It works best for low-entry studios and 1-bedroom apartments, not for buyers expecting Bole-style tenant liquidity.
Lebu is also not a complete avoid. It works only if the apartment is clearly discounted, because the area’s prestige and rental depth are weaker than Gerji or Bole.
Arada / Piassa older stock is risky for beginners because building condition can overwhelm the yield. A 6.1% studio net yield is attractive only if repairs, title, management, and tenantability are under control.
Summit large units are weaker because the estimated 2-bedroom net yield is only 4.1%. Family demand exists, but the rent does not fully compensate for the ETB 15.5 million estimated purchase price.
Ayat should be avoided only when the unit is poorly located or poorly managed. Good compounds can work well, especially for studios and 1-bedroom apartments.
Which neighborhoods are seeing rental demand weaken, and why, in Addis Ababa?
The neighborhoods where rental demand appears more vulnerable are Summit, Jemo, Lebu, and some premium Bole large-apartment segments.
Summit is vulnerable because rents do not fully keep pace with purchase prices in this estimate. Its 2-bedroom apartment produces only 4.1% net yield, the weakest figure in the table.
Jemo and Lebu are more price-sensitive. They can rent well when priced correctly, but tenant demand is thinner than in Bole, Kazanchis, Old Airport, and Gerji.
Some large Bole apartments also face pressure. Bole remains the strongest rental-search market, but expensive 2-bedroom apartments depend on a narrower expat, corporate, and high-income tenant base.
This is selective softening, not a full collapse in demand. Studios and 1-bedroom apartments remain more liquid because their monthly rent ticket is easier for more tenants to afford.
The practical recommendation is to be strict on large units. A 2-bedroom apartment in Bole, Summit, CMC, Sarbet, or Old Airport needs better furnishing, backup utilities, parking, security, and management to rent smoothly.
Which neighborhoods are seeing new developments that could create stronger rental demand in Addis Ababa?
The neighborhoods most likely to benefit from development-led rental demand in Addis Ababa are Kazanchis, Mexico, Piassa / Arada, Sarbet, Bole, and Lebu.
Kazanchis is the clearest central upgrade story. The raw dataset notes that renovated Kazanchis was inaugurated in April 2025 as part of the city's beautification and corridor development program.
Mexico and Sarbet benefit from the broader Piassa, Mexico, Sarbet, Gotera, and Wollo Sefer corridor logic. Better streets, public realm, and mobility can improve renter appeal once disruption settles.
Bole remains supported by airport access, malls, hotels, and business demand. The issue is not demand, but whether new premium supply creates competition for ordinary large apartments.
Lebu is more speculative, but transport improvements could help its rental case. The dataset notes that Addis Ababa BRT planning is intended to support a high-capacity mass-transit backbone.
The key distinction is demand-creating development versus supply-heavy development. A transport corridor can deepen the tenant pool, while too many similar apartments can simply increase vacancy.
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.
Which neighborhoods have become less attractive for apartment investors over the last 12 months in Addis Ababa?
The neighborhoods that have become less attractive for rental-income investors in Addis Ababa are Summit, some Bole luxury segments, CMC 2-bedroom apartments, and parts of Old Airport.
Summit is weaker because estimated yields are low across all apartment types. Its 2-bedroom net yield of 4.1% is hard to justify unless the buyer expects capital growth or buys at a clear discount.
Bole remains desirable, but some large apartments are vulnerable. The neighborhood has deep demand, yet premium prices can run ahead of achievable rent.
CMC 2-bedroom apartments look less attractive when sellers price them close to stronger locations. The estimated 4.4% net yield is weaker than smaller CMC units and weaker than many studios elsewhere.
Old Airport is still good for stability, but not for bargain yields. Buyers are paying for schools, prestige, quiet streets, and diplomatic-area appeal more than maximum income return.
The practical conclusion is not to avoid these areas blindly. The right reading is that these areas are still investable, but only at the right price and with stronger unit selection.
Which apartment types are becoming harder to rent in Addis Ababa, and in which neighborhoods?
The apartment types becoming harder to rent in Addis Ababa are large and expensive 2-bedroom apartments in Summit, CMC, Bole, Sarbet, and Old Airport.
The table shows why. Summit 2-bedroom apartments produce an estimated 4.1% net yield, CMC 2-bedroom apartments 4.4%, and Sarbet 2-bedroom apartments 4.7%.
The problem is not that these apartments cannot rent. The problem is that the purchase price rises faster than rent, so the yield becomes less efficient.
Bole 2-bedroom apartments are safer than Summit 2-bedroom apartments because Bole has deeper tenant demand. Still, a Bole 2-bedroom at ETB 25.5 million needs ETB 155,000 monthly rent to reach only 5.1% net yield.
Studios remain more liquid because they serve singles, young professionals, mobile workers, and budget-conscious renters. Their lower monthly rent also makes them easier to fill.
One-bedroom apartments are usually the safest beginner format. They attract singles and couples, but the total purchase price remains much lower than for 2-bedroom apartments.
The wrong purchase in Addis Ababa is often not just the wrong neighborhood. It is the wrong unit size for that neighborhood's tenant base.
Don't buy the wrong property, in the wrong area of Addis Ababa
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
INSIGHTS
These insights are drawn from the Addis Ababa apartment rental yield dataset, with a focus on what a foreign individual buyer should understand before buying a residential apartment to rent out.
You’ll find even more insights in our our real estate pack about Addis Ababa.
- Addis Ababa studios usually produce the strongest simple yield because small apartments convert purchase price into rent more efficiently. Ayat, Jemo, Mexico, Arada / Piassa, Bole, and Lebu all show studio net yields of 6.0% or more.
- One-bedroom apartments are the best balance product for a beginner buyer. They usually produce slightly lower yield than studios, but they attract a wider tenant pool and are easier to understand than large family units.
- Two-bedroom apartments often look better for stability than pure yield. They earn higher absolute rent, but the purchase price usually rises faster than rent in Addis Ababa.
- Bole is expensive, but it remains the strongest rental-stability market. The 32.5% rental-search share in the raw dataset is a major demand signal that helps justify lower risk even when purchase prices are high.
- Ayat is one of the best yield markets when the apartment is in a good compound. The area combines lower entry prices with rents that are still strong enough to support a 6.4% studio net yield.
- Mexico is the strongest central-value story. It is not luxury, but centrality makes the rent more durable than in many cheaper fringe areas.
- Kazanchis is attractive for professional renters. The 1-bedroom estimate of ETB 95,000 monthly rent and 5.5% net yield shows how office-linked demand can support higher prices.
- Gerji is a useful compromise between Bole access and lower entry pricing. It does not maximize yield, but it offers a broader renter base than many cheaper neighborhoods.
- Old Airport and Sarbet are stability markets, not bargain-yield markets. Buyers pay for prestige, schools, embassies, and resale confidence more than maximum rental income.
- Summit is the weakest pure-yield profile in the dataset. A 2-bedroom net yield of 4.1% means the buyer needs a strong non-yield reason to buy there.
- Jemo can work, but it is more price-sensitive. Its high yield comes from low entry prices, so tenant depth and resale liquidity need careful checking.
- Lebu has value, but rent growth depends on accessibility and neighborhood services. It should be bought at a clear discount, not at prices close to stronger areas.
- Arada / Piassa has centrality and yield upside, but older buildings can carry hidden costs. Repairs, title clarity, disruption, and management quality can reduce the real return.
- Gross yield is useful, but net yield matters more for a foreign buyer. Vacancy, furnishing wear, service charges, repairs, agent fees, collection risk, and building management can change the outcome materially.
- The most important Addis Ababa risk is buying a weak unit in a decent neighborhood. A good area cannot fully fix poor building quality, bad management, or an unrealistic rent assumption.
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OUR METHODOLOGY TO BUILD THIS TRACKER
To estimate purchase price, monthly rent, and rental yield in different Addis Ababa neighborhoods, we built the analysis manually from the ground up by neighborhood and apartment type. We did not reuse a third-party rental-yield dataset.
For each area, we reviewed current residential apartment sale listings and rental listings across major Ethiopia real estate platforms, including Ethiopia Property Centre, Jiji Ethiopia, and EthiopiaRealty.
First, we collected comparable sale listings for each neighborhood and apartment type. We then cleaned the sample by removing duplicates, unrealistic asking prices, luxury outliers, distressed assets, serviced-style offers, incomplete listings, and properties that were not comparable by location, type, size, condition, or listing quality.
For sale prices, we used the median price as the main reference where possible. We used the average only when the listing sample was clean enough and the comparable properties were close enough to make the result credible.
We built the rental side separately. For the same neighborhood and apartment type, we collected comparable rental listings, removed outliers and non-comparable listings, and estimated a realistic monthly rent using the median rent where possible.
Purchase prices and rents were then matched by neighborhood and property type. Gross rental yield was calculated as annual rent divided by estimated purchase price.
To estimate net rental yield, we did not apply one flat discount to every apartment. The deduction was adjusted by neighborhood and apartment type because different Addis Ababa apartments have different cost structures.
The net-yield adjustment reflects the costs and risks that matter in practice, including vacancy risk, maintenance, furnishing wear, management costs, agent fees, repair costs, service charges, building costs, utilities, collection risk, and tax friction where relevant.
Each estimate is assigned a confidence view based on the quality and size of the comparable listing sample. Around 30 to 40 comparable listings means higher confidence, 20 to 30 comparable listings means usable but less robust, and fewer than 20 comparable listings means directional only unless the comparable area is widened.
These estimates are updated regularly and should be read as structured market estimates, not guarantees of future rental income. Honesty, quality, and rigor are central to our work, and they are also what you will find in our real estate pack about Addis Ababa.
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