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 thinking about buying an apartment in Addis Ababa to rent it out, you're probably wondering what kind of return you can actually expect on your investment.
In this article, we break down exactly what rental yields look like in Addis Ababa in 2026, what rents you can charge, and what costs will eat into your profits.
We constantly update this blog post with fresh data, so you always get the most current picture of the Addis Ababa rental market.
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.
What rental yields can I realistically get from an apartment in Addis Ababa?
What's the average gross rental yield for apartments in Addis Ababa as of 2026?
As of early 2026, the average gross rental yield for apartments in Addis Ababa typically falls between 5% and 8%, with smaller units like studios and one-bedroom apartments usually sitting closer to the top of that range.
Most apartment investors in Addis Ababa can realistically expect gross yields somewhere between 4% and 8.5%, depending on the size and location of the property they purchase.
The main factor that causes gross yields to vary so much in Addis Ababa is whether you buy in the expat-heavy rental market (where furnished apartments with backup power and water command premium rents) or in the local Ethiopian Birr-paying tenant market (where rents are more modest but tenant pools are larger).
Compared to other major African cities, Addis Ababa's gross rental yields are competitive but not exceptional, sitting slightly below Nairobi's 6% to 9% range but above Cairo's 4% to 6% average, largely because Addis Ababa property prices have risen faster than rents in recent years.
What's the average net rental yield for apartments in Addis Ababa as of 2026?
As of early 2026, the average net rental yield for apartments in Addis Ababa typically ranges from 2.5% to 5%, which is notably lower than gross yields due to the city's unique operating costs.
Most apartment investors in Addis Ababa can realistically expect net yields between 2% and 5%, with well-managed small units in growth corridors like CMC or Megenagna more likely to reach the higher end of that range.
The single biggest expense that reduces gross yield to net yield for apartments in Addis Ababa is the cost of maintaining reliable backup utilities, specifically generators and water storage systems, which are essential for keeping tenants happy in a city where power cuts and water shortages remain common.
By the way, you will find much more detailed data in our property pack covering the real estate market in Addis Ababa.
What's the typical rent-to-price ratio for apartments in Addis Ababa in 2026?
As of early 2026, the typical price-to-rent ratio for apartments in Addis Ababa falls between 12 and 20, meaning it takes roughly 12 to 20 years of rent to equal the purchase price of a property.
Most apartment transactions in Addis Ababa show price-to-rent ratios clustering between 12 and 18, with ratios below 12 being quite rare and usually indicating either a bargain purchase or an unusually high-rent unit.
Studios and one-bedroom apartments in growing areas like Yeka (near CMC or Summit) tend to have the lowest price-to-rent ratios (meaning better value for investors), because purchase prices there haven't yet caught up with the strong rental demand from young professionals and smaller households.
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How much rent can I charge for an apartment in Addis Ababa?
What's the typical tenant budget range for apartments in Addis Ababa right now?
The typical monthly tenant budget for renting an apartment in Addis Ababa in early 2026 ranges from about Br 40,000 to Br 110,000 (roughly $310 to $850 USD, or €290 to €790 EUR), with the average sitting around Br 55,000 per month.
Tenants looking for mid-range apartments in Addis Ababa typically budget between Br 45,000 and Br 70,000 per month (about $350 to $540 USD, or €320 to €500 EUR), which gets them a decent two-bedroom unit in areas like Gerji, Megenagna, or the CMC corridor.
For high-end or luxury apartments in Addis Ababa, tenants budget Br 80,000 to Br 150,000 or more per month (roughly $620 to $1,160 USD, or €570 to €1,080 EUR), which typically includes furnished units with backup power, security, and premium locations near Bole Road or in Old Airport.
We have a blog article where we update the latest data about rents in Addis Ababa here.
What's the average monthly rent for a 1-bed apartment in Addis Ababa as of 2026?
As of early 2026, the average monthly rent for a one-bedroom apartment in Addis Ababa is approximately Br 40,000 to Br 55,000 (about $310 to $425 USD, or €290 to €395 EUR).
At the entry-level end, you can find a decent one-bedroom apartment in Addis Ababa for around Br 30,000 to Br 40,000 per month ($230 to $310 USD, €215 to €290 EUR), which typically means a basic unit in outer areas like Ayat or parts of Nifas Silk-Lafto, often without backup power or consistent water supply.
A mid-range one-bedroom apartment in Addis Ababa rents for about Br 40,000 to Br 55,000 per month ($310 to $425 USD, €290 to €395 EUR), and this usually gets you a clean unit in a guarded compound in neighborhoods like Gerji, Megenagna, or CMC, often with basic amenities and shared generator access.
A high-end one-bedroom apartment in Addis Ababa commands Br 60,000 to Br 80,000 or more per month ($465 to $620 USD, €430 to €575 EUR), which means a fully furnished unit in premium locations like Bole Atlas or Old Airport, complete with reliable backup power, water storage, parking, and security.
What's the average monthly rent for a 2-bed apartment in Addis Ababa as of 2026?
As of early 2026, the average monthly rent for a two-bedroom apartment in Addis Ababa is approximately Br 50,000 (about $390 USD, or €360 EUR), making it the most common unit type for both local families and foreign professionals.
An entry-level two-bedroom apartment in Addis Ababa rents for around Br 40,000 to Br 45,000 per month ($310 to $350 USD, €290 to €325 EUR), and this typically means a basic unit in emerging areas like Ayat, Bole Bulbula, or the outer edges of Yeka, often in a newer building but with limited amenities.
A mid-range two-bedroom apartment in Addis Ababa costs about Br 50,000 to Br 65,000 per month ($390 to $500 USD, €360 to €465 EUR), which gets you a well-maintained unit in established neighborhoods like Gerji, CMC, or Megenagna, typically with elevator access, a guarded compound, and shared generator service.
A high-end two-bedroom apartment in Addis Ababa runs Br 70,000 to Br 100,000 or more per month ($540 to $775 USD, €500 to €720 EUR), meaning a furnished unit with dedicated parking, full backup utilities, and premium finishes in sought-after locations like Bole Medhanialem, Kazanchis, or the Old Airport area.
What's the average monthly rent for a 3-bed apartment in Addis Ababa as of 2026?
As of early 2026, the average monthly rent for a three-bedroom apartment in Addis Ababa is approximately Br 70,000 (about $540 USD, or €500 EUR), though family-sized units show more price variation than smaller apartments.
An entry-level three-bedroom apartment in Addis Ababa rents for around Br 50,000 to Br 60,000 per month ($390 to $465 USD, €360 to €430 EUR), which usually means a functional unit in peripheral growth areas or older buildings in established neighborhoods, often without air conditioning or modern finishes.
A mid-range three-bedroom apartment in Addis Ababa costs about Br 70,000 to Br 90,000 per month ($540 to $700 USD, €500 to €645 EUR), and this typically delivers a spacious unit in a well-maintained compound in neighborhoods like Bole, Kirkos, or the CMC corridor, with reliable elevator service and compound security.
A high-end three-bedroom apartment in Addis Ababa commands Br 100,000 to Br 150,000 or more per month ($775 to $1,160 USD, €720 to €1,080 EUR), meaning a fully furnished, premium unit targeting diplomatic or corporate tenants in prime locations like Old Airport, Kazanchis, or near Bole Road, complete with dedicated parking and full backup utilities.
How fast do well-priced apartments get rented in Addis Ababa?
In Addis Ababa in early 2026, a well-priced apartment in a high-demand area typically gets rented within 2 to 6 weeks, while overpriced or poorly located units can sit vacant for 3 months or longer.
The typical vacancy rate for apartments in Addis Ababa hovers around 5% to 10% in popular neighborhoods like Bole and Kirkos, but can climb to 15% or higher in oversupplied newer developments on the city's outskirts.
In Addis Ababa specifically, apartments with backup power generators and water storage systems rent dramatically faster than those without, because tenants know that power cuts and water shortages are common, so reliability is often more important than an extra bedroom or a slightly better location.
And if you want to know what should be the right price, check our latest update on how much an apartment should cost 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.
Which apartment type gives the best yield in Addis Ababa?
Which is better for yield between studios, 1-bed, 2-bed and 3-bed apartments in Addis Ababa as of 2026?
As of early 2026, studios and one-bedroom apartments in Addis Ababa typically offer the best rental yields, followed by two-bedrooms, with three-bedroom units usually delivering the lowest yields.
In Addis Ababa, studios and one-bedrooms can achieve gross yields of 6% to 8.5%, two-bedrooms typically fall between 4% and 6%, and three-bedrooms usually land in the 3.5% to 5% range because purchase prices rise faster than rents as unit size increases.
The main reason smaller units outperform in Addis Ababa is that the city's growing middle class and young professional workforce creates strong demand for affordable, compact housing, while the premium three-bedroom market is limited to a smaller pool of expat and diplomatic tenants who are price-sensitive about overpaying.
Which features are best if you want a good yield for your apartment in Addis Ababa?
The features that most positively impact rental yield for apartments in Addis Ababa are backup power (generator access), water storage tanks with pressure pumps, compound security with guards, and dedicated parking, because these directly address the city's infrastructure challenges that tenants worry about most.
In Addis Ababa, mid-floor apartments (typically floors 2 through 5) are easiest to rent because they balance the convenience of elevator access with lower exposure to water pressure issues on higher floors and security concerns on ground floors.
Apartments with balconies or outdoor space do command slightly higher rents in Addis Ababa, especially in areas like Bole and Old Airport where the expat market values outdoor living, but the premium is modest (around 5% to 10%) and matters more for furnished units targeting international tenants.
In Addis Ababa, building features like elevators, concierge service, and parking do raise rents enough to justify higher service charges, but only if those amenities actually work reliably, because tenants have learned to be skeptical of buildings where the elevator breaks down regularly or the generator runs out of fuel.
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Which neighborhoods give the best rental demand for apartments in Addis Ababa?
Which neighborhoods have the highest rental demand for apartments in Addis Ababa as of 2026?
As of early 2026, the neighborhoods with the highest rental demand for apartments in Addis Ababa are Bole (including Atlas, Olympia, and the Edna Mall area), Kirkos (especially the Kazanchis corridor), and parts of Yeka sub-city (particularly CMC, Megenagna, and Summit).
The main demand driver that makes these Addis Ababa neighborhoods attractive is their concentration of international organizations, embassies, NGOs, and corporate offices, which creates a steady pool of well-paying expat and professional tenants who prioritize proximity to work and reliable infrastructure.
In these high-demand Addis Ababa neighborhoods, well-priced apartments typically rent within 2 to 4 weeks, and vacancy rates stay below 5% for quality units with reliable utilities.
One emerging neighborhood gaining rental demand momentum in Addis Ababa is the Ayat and Summit corridor in Yeka sub-city, where new apartment developments are attracting young professionals priced out of central Bole, and rental demand is growing faster than new supply.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Addis Ababa.
Which neighborhoods have the highest yields for apartments in Addis Ababa as of 2026?
As of early 2026, the neighborhoods with the highest rental yields for apartments in Addis Ababa are the Yeka-side growth corridors like CMC, Megenagna, and Summit, along with parts of Ayat and certain pockets of Nifas Silk-Lafto where purchase prices remain relatively affordable.
In these top-yielding Addis Ababa neighborhoods, gross rental yields typically range from 6% to 8.5%, compared to 4% to 6% in premium areas like central Bole or Old Airport where purchase prices have risen faster than rents.
The main reason these neighborhoods offer higher yields in Addis Ababa is that they sit in the "sweet spot" where purchase prices haven't yet caught up with the spillover rental demand from workers who can't afford to live in expensive Bole but need reasonable access to central business districts.
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.
Should I do long-term rental or short-term rental in Addis Ababa?
Is short-term rental legal for apartments in Addis Ababa as of 2026?
As of early 2026, short-term rental is not automatically illegal in Addis Ababa, but it operates in a gray area where running an Airbnb-style operation may trigger business licensing and tax compliance requirements that most casual landlords don't anticipate.
The main legal restrictions for operating a short-term rental apartment in Addis Ababa come from Ethiopia's rent control framework, which is designed for longer-term residential leases and requires formal lease registration, plus the reality that frequent short-stays can be viewed as an accommodation business subject to commercial licensing.
There is no specific Airbnb registration system in Addis Ababa like you might find in European cities, but landlords who operate short-term rentals commercially should expect to register as a business with the Ministry of Revenue and comply with rental income tax obligations, which many informal operators currently don't do.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Addis Ababa.
What's the gross yield difference short-term vs long-term in Addis Ababa in 2026?
As of early 2026, short-term rentals in Addis Ababa can potentially generate 2 to 6 percentage points higher gross yields than long-term rentals, but only if you maintain high occupancy and manage the significant additional costs involved.
In Addis Ababa, long-term rentals typically deliver 5% to 8% gross yields, while short-term rentals can achieve 7% to 12% gross yields in well-located, furnished units in areas like Bole, Kazanchis, or Old Airport that attract business travelers and diaspora visitors.
The main additional costs that reduce the net yield advantage of short-term rentals in Addis Ababa include professional cleaning after each guest, higher utility bills (you pay electricity and water), furnishing and replacement costs, platform fees (Airbnb takes 3% to 5%), and often a property manager charging 20% to 30% of revenue to handle the operational complexity.
To outperform a long-term rental in Addis Ababa, a short-term rental apartment needs to maintain at least 50% to 60% occupancy, which is achievable in prime tourist and business areas but challenging in residential neighborhoods without strong visitor traffic.
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What costs will eat into my net yield for an apartment in Addis Ababa?
What are building service charges as a % of rent in Addis Ababa as of 2026?
As of early 2026, typical building service charges in Addis Ababa run about 8% to 15% of monthly rent, or roughly Br 4,000 to Br 12,000 per month ($30 to $95 USD, €28 to €88 EUR) for a standard apartment.
The realistic range of building service charges in Addis Ababa spans from 5% of rent for basic buildings with minimal amenities up to 20% or more for premium compounds, translating to roughly Br 2,500 to Br 20,000 per month ($20 to $155 USD, €18 to €145 EUR) depending on the property.
In Addis Ababa, the services that justify higher-than-average service charges are generator fuel and maintenance (this is often the biggest line item), compound security with 24-hour guards, elevator maintenance, water pump and storage system upkeep, and common area cleaning, because the city's infrastructure gaps make these services essential rather than luxury add-ons.
What annual maintenance budget should I assume for an apartment in Addis Ababa right now?
Apartment owners in Addis Ababa should budget approximately 1% to 2% of property value per year for maintenance, which translates to roughly Br 75,000 to Br 300,000 annually ($580 to $2,325 USD, €540 to €2,160 EUR) for a typical apartment.
The realistic range of annual maintenance costs in Addis Ababa spans from about Br 50,000 ($390 USD, €360 EUR) for newer buildings in good condition up to Br 400,000 or more ($3,100 USD, €2,880 EUR) for older properties or units with heavy generator usage and frequent repairs.
The most common maintenance expenses apartment owners face annually in Addis Ababa are generator repairs and servicing (a major cost given frequent power outages), water pump and tank maintenance, repainting walls due to dust and humidity, inverter and battery replacements for backup power systems, and plumbing repairs caused by inconsistent water pressure.
What property taxes should I expect for an apartment in Addis Ababa as of 2026?
As of early 2026, apartment owners in Addis Ababa should budget approximately 0.1% to 0.3% of property value per year for property tax, which translates to roughly Br 7,500 to Br 45,000 annually ($60 to $350 USD, €55 to €325 EUR) for a typical apartment.
The realistic range of property taxes in Addis Ababa depends on the assessed value and can span from Br 5,000 per year ($40 USD, €37 EUR) for a modest unit up to Br 100,000 or more ($775 USD, €720 EUR) for high-value properties in premium locations.
Property taxes for apartments in Addis Ababa are calculated based on assessed property value under the framework established by Property Tax Proclamation No. 1365/2025, though the exact rates and implementation can vary as city-level rollout continues to be phased in.
There may be exemptions or reduced rates available for certain property owners in Addis Ababa, particularly for primary residences or properties below certain value thresholds, but these details are still being clarified as the new property tax framework gets implemented across different areas.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Addis Ababa.
How much does landlord insurance cost for an apartment in Addis Ababa in 2026?
As of early 2026, typical annual landlord insurance for an apartment in Addis Ababa costs approximately 0.2% to 0.5% of property value, which translates to roughly Br 15,000 to Br 75,000 per year ($115 to $580 USD, €105 to €540 EUR) for a standard unit.
The realistic range of annual landlord insurance costs in Addis Ababa spans from about Br 10,000 ($80 USD, €70 EUR) for basic building coverage up to Br 150,000 or more ($1,160 USD, €1,080 EUR) for comprehensive policies that include contents coverage for furnished rental units targeting the expat market.
What's the typical property management fee for apartments in Addis Ababa as of 2026?
As of early 2026, the typical property management fee for long-term rental apartments in Addis Ababa runs about 8% to 10% of collected rent, which translates to roughly Br 4,000 to Br 7,000 per month ($30 to $55 USD, €28 to €50 EUR) for a typical two-bedroom unit.
The realistic range of property management fees in Addis Ababa spans from 8% of rent for basic tenant-finding and rent collection up to 25% to 30% of revenue for full-service short-term rental management, meaning Br 3,500 to Br 30,000 per month ($27 to $230 USD, €25 to €215 EUR) depending on the service level.
Standard property management services in Addis Ababa typically include tenant finding, lease preparation, rent collection, coordinating repairs, and handling tenant communications, while premium packages add utilities management, regular property inspections, and dealing with the building administration on your behalf.
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.
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 |
|---|---|---|
| Ethiopia Property Centre (Rentals) | It's the largest structured pool of current Addis Ababa rental listings with consistent filters. | We used it to anchor typical asking rents for different apartment sizes in early 2026. We treated it as our primary market proxy and cross-checked it against other sources. |
| Ethiopia Property Centre (Sales) | It's one of the only transparent sources showing city-specific sale prices and volumes. | We used it to anchor purchase prices for typical apartments in Addis Ababa. We paired those prices with rent benchmarks to calculate gross rental yields. |
| Ethiopia Property Centre (Rent Trends) | It shows median rents by sub-city with a stated methodology. | We used it to understand how rents vary between neighborhoods like Bole, Kirkos, and Yeka. We used it as a cross-check on our overall rent estimates. |
| Jiji Ethiopia | It's a high-volume classifieds marketplace useful for spotting price floors. | We used it to triangulate studio and entry-level rent figures. We treated it as a secondary check rather than our main benchmark. |
| Numbeo | It publishes sample sizes and refresh dates, making it auditable. | We used it only as a triangulation point for rent-to-price ratios. We did not rely on it as a primary source because it's user-submitted data. |
| Ministry of Justice (Rent Control) | It's the official government repository for in-force rental laws. | We used it to explain how lease rules and rent increase limits affect investor cashflow. We used it to frame legal risks for both long-term and short-term strategies. |
| Ministry of Justice (Income Tax) | It's the official source for rental income taxation rules. | We used it to model rental income tax as a drag on net yield. We used it to explain why net yields can vary based on your tax profile. |
| Ethiolex (Property Tax Proclamation) | It provides a readable PDF when official downloads are restricted. | We used it to confirm that a property tax framework exists as of early 2026. We used it to justify including property tax in our net yield planning assumptions. |
| Ministry of Revenue Ethiopia | It's the government's public entry point for tax administration. | We used it as an authority anchor for tax compliance and registration. We used it to support practical advice on filing requirements. |
| ExchangeRates.org.uk | It's a transparent, date-stamped public exchange rate history. | We used it to convert rents and prices into USD and EUR for foreign readers. We used it only for currency conversion, not for any property market claims. |
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