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 looking to rent or invest in Addis Ababa, you're probably wondering what rents actually look like right now.
We've put together this guide with fresh data on current housing prices in Addis Ababa, and we constantly update this blog post to keep it accurate.
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
- Studio apartments in Addis Ababa average around ETB 83,000 per month in January 2026, but prices can double in premium areas like Bole with generator and security included.
- The rent gap between city centre and outer neighborhoods in Addis Ababa reaches about 50%, with centre apartments averaging USD 836 versus USD 556 outside.
- Addis Ababa's rental vacancy rate sits between 4% and 7% citywide, but drops to just 2% to 5% for well-located units with backup power in Bole or Kazanchis.
- Rent growth in Addis Ababa has cooled from the 30%+ spikes seen in 2021 to 2023, settling into a more moderate 10% to 16% range for 2026.
- Properties with reliable generator backup and water storage in Addis Ababa command significantly higher rents than those without, making these the top "rent multipliers" for landlords.
- Good-quality rentals in Addis Ababa's prime neighborhoods like Old Airport or Hayahulet typically find tenants within 15 to 30 days, while overpriced units can sit for 90 days or more.
- The Addis Ababa Light Rail corridors around Megenagna, Mexico, and Meskel Square create rental hotspots where properties move faster than the city average.
- Furnished apartments in Addis Ababa targeting expats and diaspora renters can fetch 25% to 40% more than unfurnished units in the same building.
- Peak rental demand in Addis Ababa hits during January to March and again from August to October, driven by organizational rotations and post-rainy-season moves rather than Western summer patterns.
- The housing component of Ethiopia's inflation dropped to just 3.7% in late 2025, but Addis Ababa rents still grow faster due to the city's structural supply shortage.
What are typical rents in Addis Ababa as of 2026?
What's the average monthly rent for a studio in Addis Ababa as of 2026?
As of early 2026, the average monthly rent for a studio apartment in Addis Ababa is around ETB 83,000, which works out to approximately USD 535 or EUR 490.
That said, you'll find studios ranging from about ETB 55,000 to ETB 125,000 per month (USD 355 to USD 805, or EUR 325 to EUR 740), depending on location and what's included.
The main factors that push studio rents up or down in Addis Ababa include whether the unit is furnished, whether it has generator backup and security, and whether it's located in a premium area like Bole or a more affordable outer neighborhood.
What's the average monthly rent for a 1-bedroom in Addis Ababa as of 2026?
As of early 2026, the average monthly rent for a 1-bedroom apartment in Addis Ababa is around ETB 104,000, which equals approximately USD 668 or EUR 615.
Realistically, you'll see 1-bedroom rents in Addis Ababa ranging from about ETB 70,000 to ETB 150,000 per month (USD 450 to USD 965, or EUR 415 to EUR 890), with most falling somewhere in between.
Areas like Ayat, Lebu, and CMC tend to have the cheapest 1-bedroom rents in Addis Ababa, while Bole, Old Airport, and Kazanchis sit at the top of the price range.
What's the average monthly rent for a 2-bedroom in Addis Ababa as of 2026?
As of early 2026, the average monthly rent for a 2-bedroom apartment in Addis Ababa is around ETB 165,000, which equals approximately USD 1,065 or EUR 980.
Most 2-bedroom apartments in Addis Ababa fall within a range of ETB 115,000 to ETB 240,000 per month (USD 740 to USD 1,550, or EUR 680 to EUR 1,425), depending on quality and location.
The most affordable 2-bedroom rents in Addis Ababa are typically found in areas like CMC, Ayat, and Lebu, while the most expensive ones cluster in Bole, Old Airport, Bisrate Gabriel, and Kazanchis where furnished units with full amenities dominate.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Addis Ababa.
What's the average rent per square meter in Addis Ababa as of 2026?
As of early 2026, the average rent per square meter in Addis Ababa is around ETB 1,900 to ETB 2,100 per month, which equals approximately USD 12 to USD 13 or EUR 11 to EUR 12 per square meter.
Across different neighborhoods in Addis Ababa, you can see rent per square meter ranging from about ETB 1,400 in outer areas to ETB 2,800 or more in prime furnished buildings in Bole or Kazanchis.
Compared to other Ethiopian cities, Addis Ababa commands significantly higher rents per square meter, often two to three times what you'd pay in regional cities like Dire Dawa or Hawassa, reflecting the capital's unique demand pressures.
Properties in Addis Ababa that push rent per square meter above average typically have reliable backup power, modern finishing, secure parking, water storage, and are located near major business hubs or embassies.
How much have rents changed year-over-year in Addis Ababa in 2026?
As of early 2026, rents in Addis Ababa have increased by an estimated 10% to 16% compared to January 2025, with prime furnished units at the higher end and local unfurnished stock closer to the lower end.
The main factors driving rent changes in Addis Ababa this year include continued urban population growth, a persistent shortage of quality housing supply, and strong demand from expats and diaspora renters seeking furnished apartments with reliable amenities.
This year's rent growth in Addis Ababa is notably more moderate than the 25% to 35% increases seen in 2021 to 2023, reflecting the broader cooling of Ethiopia's inflation rate which dropped to about 11% by late 2025.
What's the outlook for rent growth in Addis Ababa in 2026?
As of early 2026, we project rent growth in Addis Ababa to land between 8% and 14% for the full year, continuing the moderation trend from the previous high-inflation period.
The key factors likely to influence rent growth in Addis Ababa over the coming year include Ethiopia's ongoing disinflation efforts, the city's rapid urbanization adding pressure to housing demand, and the limited pipeline of new quality rental supply.
Neighborhoods in Addis Ababa expected to see the strongest rent growth in 2026 include Bole, Old Airport, and Kazanchis, where demand for amenity-rich, furnished apartments remains intense among expats and high-income local renters.
Risks that could cause Addis Ababa rent growth to differ from projections include potential currency volatility, unexpected shifts in expat employer relocations, or any major acceleration in new housing construction that eases the supply constraint.
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 rent best in Addis Ababa as of 2026?
Which neighborhoods have the highest rents in Addis Ababa as of 2026?
As of early 2026, the three neighborhoods with the highest average rents in Addis Ababa are Bole, Old Airport (Bisrate Gabriel), and Kazanchis, where furnished 2-bedroom apartments commonly exceed ETB 200,000 per month (USD 1,290 or EUR 1,185).
These neighborhoods command premium rents in Addis Ababa because they offer modern buildings, reliable backup power, security services, proximity to embassies and international organizations, and a concentration of restaurants and cafes that expats value.
The typical tenant profile in these high-rent Addis Ababa neighborhoods includes expat professionals, NGO staff, diplomatic personnel, diaspora Ethiopians returning for work, and executives at multinational companies.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Addis Ababa.
Where do young professionals prefer to rent in Addis Ababa right now?
The top three neighborhoods where young professionals prefer to rent in Addis Ababa are Bole, Kazanchis, and Megenagna, all offering good access to offices, public transport, and social amenities.
Young professionals in these Addis Ababa neighborhoods typically pay between ETB 80,000 and ETB 130,000 per month (USD 515 to USD 840, or EUR 475 to EUR 770) for a 1-bedroom or small 2-bedroom apartment.
The amenities and lifestyle features that attract young professionals to these Addis Ababa neighborhoods include walkability to cafes and restaurants, proximity to commercial centres, reliable internet access in newer buildings, and good public transport connections via the Light Rail or minibus routes.
By the way, you will find a detailed tenant analysis in our property pack covering the real estate market in Addis Ababa.
Where do families prefer to rent in Addis Ababa right now?
The top three neighborhoods where families prefer to rent in Addis Ababa are Old Airport (Bisrate Gabriel), CMC, and Ayat, all offering more space, quieter streets, and a residential atmosphere.
Families in these Addis Ababa neighborhoods typically pay between ETB 150,000 and ETB 280,000 per month (USD 970 to USD 1,805, or EUR 890 to EUR 1,660) for 2 to 3 bedroom apartments or villas.
The features that make these neighborhoods attractive to families in Addis Ababa include larger unit sizes, secure compounds with parking, nearby schools and clinics, and a calmer environment compared to the busy city centre.
Top-rated educational options near these family-friendly Addis Ababa neighborhoods include international schools like the International Community School (ICS) and Sandford International School, as well as well-regarded local schools in the CMC and Ayat areas.
Which areas near transit or universities rent faster in Addis Ababa in 2026?
As of early 2026, the top three areas near transit hubs or universities that rent fastest in Addis Ababa are Megenagna (a major Light Rail node), Mexico near Meskel Square, and the Sidist Kilo area near Addis Ababa University.
Properties in these high-demand Addis Ababa areas typically stay listed for just 15 to 30 days when priced fairly, compared to 45 to 60 days for average stock elsewhere in the city.
The rent premium for properties within walking distance of the Light Rail or Addis Ababa University is typically ETB 10,000 to ETB 20,000 per month (USD 65 to USD 130, or EUR 60 to EUR 120) above comparable units farther from transit or campus.
Which neighborhoods are most popular with expats in Addis Ababa right now?
The top three neighborhoods most popular with expats in Addis Ababa are Bole, Old Airport (Bisrate Gabriel), and Kazanchis, all offering the amenities and security that international residents prioritize.
Expats in these Addis Ababa neighborhoods typically pay between ETB 150,000 and ETB 300,000 per month (USD 970 to USD 1,935, or EUR 890 to EUR 1,780) for furnished 2-bedroom or 3-bedroom apartments with full services.
The features that make these neighborhoods attractive to expats in Addis Ababa include furnished apartments with generator backup, proximity to embassies and international organizations, good restaurants and cafes, security services, and reliable water supply.
The nationalities and expat communities most represented in these Addis Ababa neighborhoods include diplomats and UN staff from across Africa, Europe, and North America, as well as NGO workers and employees of international companies with regional offices in Addis.
And if you are also an expat, you may want to read our exhaustive guide for expats in Addis Ababa.
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Who rents, and what do tenants want in Addis Ababa right now?
What tenant profiles dominate rentals in Addis Ababa?
The top three tenant profiles that dominate the rental market in Addis Ababa are local professionals with stable incomes, expats and NGO staff, and diaspora Ethiopians returning for work or family reasons.
In terms of market share in Addis Ababa, local professionals make up roughly 50% to 60% of renters, while expats and NGO staff account for about 20% to 25%, and diaspora returnees represent around 15% to 20%.
Local professionals in Addis Ababa typically seek 1-bedroom or 2-bedroom unfurnished apartments near their workplaces, while expats and diaspora renters usually want furnished 2-bedroom or 3-bedroom units with generator backup and security in premium neighborhoods like Bole or Old Airport.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Addis Ababa.
Do tenants prefer furnished or unfurnished in Addis Ababa?
In Addis Ababa's formal rental market, roughly 35% to 40% of tenants prefer furnished apartments, while 60% to 65% rent unfurnished, though the furnished share is higher in expat-heavy neighborhoods like Bole and Kazanchis.
The rent premium for furnished apartments in Addis Ababa compared to unfurnished is typically ETB 25,000 to ETB 50,000 per month (USD 160 to USD 320, or EUR 150 to EUR 295), representing a 25% to 40% markup in most cases.
Tenant profiles that tend to prefer furnished rentals in Addis Ababa include expats on short-term contracts, NGO staff rotating through assignments, diaspora visitors, and corporate relocations where employers cover housing costs.
Which amenities increase rent the most in Addis Ababa?
The top five amenities that increase rent the most in Addis Ababa are reliable backup power (generator or inverter), water storage tanks, 24-hour security, dedicated parking, and modern kitchen and bathroom finishes.
In terms of rent premiums in Addis Ababa, backup power adds about ETB 15,000 to ETB 30,000 per month (USD 95 to USD 195, or EUR 90 to EUR 180), water storage adds ETB 5,000 to ETB 10,000 (USD 30 to USD 65, or EUR 30 to EUR 60), security adds ETB 10,000 to ETB 20,000 (USD 65 to USD 130, or EUR 60 to EUR 120), parking adds ETB 5,000 to ETB 15,000 (USD 30 to USD 95, or EUR 30 to EUR 90), and modern finishes can add ETB 10,000 to ETB 25,000 (USD 65 to USD 160, or EUR 60 to EUR 150).
In our property pack covering the real estate market in Addis Ababa, we cover what are the best investments a landlord can make.
What renovations get the best ROI for rentals in Addis Ababa?
The top five renovations that get the best ROI for rental properties in Addis Ababa are installing backup power systems (inverter wiring), adding or upgrading water storage, refreshing kitchens with durable surfaces, modernizing bathrooms with leak-proof fixtures, and providing a cohesive furnishing package for expat-targeting units.
For costs and returns in Addis Ababa, backup power installation runs about ETB 50,000 to ETB 150,000 (USD 320 to USD 970, or EUR 295 to EUR 890) and can add ETB 15,000 to ETB 30,000 monthly to rent, while kitchen refreshes cost ETB 80,000 to ETB 200,000 (USD 515 to USD 1,290, or EUR 475 to EUR 1,185) and add ETB 10,000 to ETB 20,000 monthly.
Renovations that tend to have poor ROI in Addis Ababa and should be avoided include luxury decorative upgrades like expensive imported flooring or designer fixtures, as tenants prioritize functional reliability over aesthetics, and the cost rarely translates into proportionally higher rent.
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.
How strong is rental demand in Addis Ababa as of 2026?
What's the vacancy rate for rentals in Addis Ababa as of 2026?
As of early 2026, the estimated citywide vacancy rate for rental properties in Addis Ababa is between 4% and 7%, indicating a tight market where good units don't stay empty long.
Across different neighborhoods in Addis Ababa, vacancy rates range from as low as 2% to 5% in high-demand areas like Bole and Old Airport to around 8% to 12% in less connected outer neighborhoods or in buildings with poor amenities.
Compared to historical averages in Addis Ababa, the current vacancy rate is on the lower end, reflecting the city's ongoing housing supply shortage and continued rapid population growth that keeps demand persistently strong.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Addis Ababa.
How many days do rentals stay listed in Addis Ababa as of 2026?
As of early 2026, the average rental property in Addis Ababa stays listed for about 30 to 45 days before finding a tenant, though this varies significantly by quality and pricing.
Across different property types and neighborhoods in Addis Ababa, days on market ranges from just 15 to 30 days for well-priced units with good amenities in Bole or Kazanchis, to 60 to 90 days or more for overpriced units or those lacking backup power and security.
Compared to one year ago, the current days-on-market in Addis Ababa is roughly similar, as the market remains tight due to persistent demand and limited new supply entering the formal rental market.
Which months have peak tenant demand in Addis Ababa?
The peak months for tenant demand in Addis Ababa are January through March and August through October, when most relocations and new lease signings happen.
The factors driving these seasonal demand patterns in Addis Ababa include organizational budget cycles that trigger relocations in early calendar year, staff rotations at NGOs and embassies, and practical preferences to move after the main rainy season ends in September.
The months with the lowest tenant demand in Addis Ababa are typically June through July during the heavy rainy season, when moving is inconvenient, and November through December when many people delay decisions until after the new year.
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What will my monthly costs be in Addis Ababa as of 2026?
What property taxes should landlords expect in Addis Ababa as of 2026?
As of early 2026, landlords in Addis Ababa should expect to pay annual property taxes in the range of 0.3% to 1.0% of property value, which for a mid-range apartment valued at ETB 8,000,000 works out to roughly ETB 24,000 to ETB 80,000 per year (USD 155 to USD 515, or EUR 140 to EUR 475).
Across different property values and locations in Addis Ababa, annual property taxes can range from under ETB 15,000 for modest units to over ETB 200,000 for high-value villas in premium neighborhoods like Old Airport or Bole.
Property taxes in Addis Ababa are calculated based on assessed property value under Ethiopia's Property Tax Proclamation, with the city administration determining rates and billing as implementation of the national framework continues to roll out.
Please note that, in our property pack covering the real estate market in Addis Ababa, we cover what exemptions or deductions may be available to reduce property taxes for landlords.
What maintenance budget per year is realistic in Addis Ababa right now?
A realistic annual maintenance budget for a typical rental apartment in Addis Ababa is around ETB 80,000 to ETB 180,000 per year (USD 515 to USD 1,160, or EUR 475 to EUR 1,065), covering routine repairs, service charges, and minor replacements.
Across different property ages and conditions in Addis Ababa, annual maintenance costs can range from as low as ETB 50,000 for newer buildings in good condition to over ETB 300,000 for older properties or villas requiring generator upkeep, plumbing work, and boundary wall repairs.
Landlords in Addis Ababa typically set aside 8% to 15% of annual rental income for maintenance, which translates to roughly ETB 1,000 to ETB 2,000 per square meter per year for apartments in the formal rental market.
What utilities do landlords often pay in Addis Ababa right now?
The utilities landlords most commonly pay on behalf of tenants in Addis Ababa are generator running costs (fuel and maintenance), security guard salaries in compounds, and building service charges in modern apartment blocks.
For monthly costs in Addis Ababa, landlord-paid generator expenses typically run ETB 5,000 to ETB 20,000 (USD 30 to USD 130, or EUR 30 to EUR 120) depending on usage, security contributions cost ETB 3,000 to ETB 10,000 (USD 20 to USD 65, or EUR 20 to EUR 60), and building service charges range from ETB 2,000 to ETB 8,000 (USD 13 to USD 50, or EUR 12 to EUR 45).
The common practice in Addis Ababa is for tenants to pay their own electricity, water, and internet bills directly, while landlords cover (or bundle into rent) the generator, security, and compound maintenance costs, especially in the furnished expat-focused segment.
How is rental income taxed in Addis Ababa as of 2026?
As of early 2026, rental income in Addis Ababa is subject to income tax under Ethiopia's Federal Income Tax Proclamation, with rates applied according to income brackets that can range from 10% to 35% depending on total taxable income.
The main deductions landlords can claim against rental income in Addis Ababa include documented maintenance and repair expenses, property depreciation, loan interest on property financing, and certain administrative costs related to managing the rental.
A common tax mistake landlords in Addis Ababa should avoid is assuming that residential rent requires adding VAT, when in fact residential rent is treated differently under Ethiopia's VAT Proclamation and generally does not require VAT to be charged to tenants.
We cover these mistakes, among others, in our list of risks and pitfalls people face when buying property in Addis Ababa.
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 |
|---|---|---|
| Ethiopian Statistical Service (ESS) - CPI Portal | It's Ethiopia's official statistics agency publishing the country's inflation data. | We used it to anchor January 2026 price dynamics with official inflation trends. We also used the inflation breakdown to check whether rent growth should be accelerating or cooling. |
| ESS - CPI November 2025 Release | It's a primary ESS release with clear year-on-year inflation numbers and category breakdowns. | We used its latest official YoY inflation and the housing component to guide a realistic rent-growth range into early 2026. We treated it as the baseline constraint on rent increases. |
| National Bank of Ethiopia (NBE) - Daily FX | It's the central bank's official reference for Ethiopia's exchange rate environment. | We used it to express rents in both ETB and USD in a consistent way. We also used it to keep the currency conversions grounded in an official source. |
| Ethiopian Electric Utility (EEU) - Tariff Schedule | It's the official utility tariff table used to bill households. | We used it to estimate realistic electricity costs for typical apartments. We also used it to explain why "utilities included" can materially change rent in Addis Ababa. |
| Miles Ethiopia - Residential Rental Report (H1 2023) | It's a dedicated market research report with stated primary data collection and neighborhood breakdowns. | We used it as the most grounded Addis rental benchmark for high-end furnished stock. We then used it to cross-check and calibrate our 2026 citywide estimates. |
| Numbeo - Addis Ababa Rent Benchmarks | It's a long-running, transparent crowd-sourced index that discloses sample size and last update date. | We used it to get unit-type rent levels (1BR/3BR, centre vs outside) close to January 2026. We then blended it with Miles to avoid relying on a single dataset. |
| Ethiopia Property Centre (EPC) - Demand Trends | It's a large local listings platform that publishes a quantified view of what people search for. | We used it to identify where demand concentrates (like Bole) and which property types people actively search. We treated it as a revealed preference signal for neighborhood popularity. |
| World Urbanization Prospects (UN) | It's the UN's standard reference for urbanization and city growth. | We used it to support the demand pressure story around rapid city growth creating housing pressure. We also used it to justify why vacancy tends to stay low in fast-growing capitals. |
| World Bank - Ethiopia Urban Land & Housing Markets | It's a World Bank diagnostic focused directly on Ethiopia's urban land and housing constraints. | We used it to ground the structural supply gap that keeps rents sticky upward. We also used it to avoid pure listings logic and reflect real housing pipeline constraints. |
| Reuters - Ethiopia Inflation Outlook | It's a global wire service quoting senior policymakers on expected inflation trajectory. | We used it to support the idea that 2026 rent growth is more likely to cool than re-accelerate. We combined it with ESS inflation to set a narrow, confident rent-growth range. |
| Ethiopia Justice - Income Tax Proclamation | It's an official government portal for Ethiopian laws. | We used it to ground how rental income is taxed in law rather than blog interpretations. We then translated the legal structure into a landlord-friendly checklist. |
| Ethiopia Justice - Property Tax Proclamation | It's an official publication point for the property tax framework. | We used it to explain what property tax means in Ethiopia's newer framework and what landlords should expect. We also used it to avoid guesswork based on informal summaries. |
| MetaAppz - VAT Proclamation Text | It provides a readable primary-law version of the VAT proclamation structure and exemptions. | We used it to confirm that residential rent is treated differently from normal VAT-able services. We then turned that into a simple "Do I add VAT?" answer for landlords. |
| MetaAppz - Income Tax Amendment 2025 | It provides the updated income tax bracket rules from the 2025 amendment. | We used it to ensure our tax guidance reflects the most recent changes to Ethiopia's income tax structure. We recommended landlords confirm their situation against these updated brackets. |
| Addis Ababa Light Rail (Wikipedia) | It's a widely referenced, consolidated description of the LRT lines and main station areas. | We used it to name practical rent-faster zones near the rail corridors like Megenagna and Meskel Square. We treated it as geography support, not a rent dataset. |
| Addis Ababa University - Official Site | It's the official website of the country's flagship university. | We used it to justify student and academic-driven rental demand around AAU campuses. We then mapped that into named nearby neighborhoods people actually rent in. |
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