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
Addis Ababa's property market in early 2026 is a tale of two speeds, with prime expat-driven pockets commanding international-city prices while peripheral growth zones offer much lower entry points but come with trade-offs in commute time and utilities reliability.
Property prices in Addis Ababa vary dramatically by neighborhood, ranging from around 80,000 ETB per square meter in outer areas to over 400,000 ETB per square meter in the most sought-after locations near the airport and diplomatic clusters.
We constantly update this blog post to reflect the latest market conditions, infrastructure developments, and regulatory changes affecting foreign buyers in Addis Ababa.
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's the Current Real Estate Market Situation by Area in Addis Ababa?
Which areas in Addis Ababa have the highest property prices per square meter in 2026?
As of early 2026, the three most expensive areas in Addis Ababa are Old Airport in Bole, the prime Bole strips around Atlas and Edna Mall, and Kazanchis in Kirkos sub-city.
In these premium Addis Ababa neighborhoods, prices typically range from 240,000 to 420,000 ETB per square meter for newer apartments, with luxury villas sometimes exceeding these figures.
Each of these high-priced Addis Ababa areas commands premium prices for distinct reasons:
- Old Airport (Bole): walkable premium amenities, strongest expat tenant pool, and very limited new supply
- Atlas/Edna Mall area (Bole): direct airport access within 15 minutes and best rental liquidity in the city
- Kazanchis (Kirkos): CBD adjacency with corporate headquarters and NGO offices driving consistent demand
Which areas in Addis Ababa have the most affordable property prices in 2026?
As of early 2026, the most affordable areas in Addis Ababa are Akaky Kaliti in the industrial south, the outer neighborhoods of Kolfe Keranio in the west, and peripheral pockets of Nifas Silk-Lafto such as Jemo.
In these budget-friendly Addis Ababa areas, property prices typically range from 80,000 to 150,000 ETB per square meter, making them accessible entry points for investors.
However, buyers in these lower-priced Addis Ababa neighborhoods should expect trade-offs: Akaky Kaliti offers proximity to industrial jobs but lower resale liquidity, Kolfe Keranio is affected by ongoing roadworks creating short-term disruption, and outer Nifas Silk-Lafto areas often struggle with inconsistent water and electricity supply.
You can also read our latest analysis regarding housing prices in Addis Ababa.
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 Areas in Addis Ababa Offer the Best Rental Yields?
Which neighborhoods in Addis Ababa have the highest gross rental yields in 2026?
As of early 2026, the neighborhoods in Addis Ababa with the highest gross rental yields are Kazanchis in Kirkos (around 14 to 16%), the CMC and Megenagna-adjacent pockets in Yeka (around 7 to 11%), and select value-priced units in Bole away from prime new-build pricing (around 6 to 9%).
Across Addis Ababa as a whole, typical gross rental yields for investment properties range from 4% in overpriced prime locations to 12% or more in well-positioned mid-market areas with strong tenant demand.
These high-yielding Addis Ababa neighborhoods outperform others for specific reasons:
- Kazanchis (Kirkos): strong expat and corporate tenant demand but purchase prices remain below Old Airport levels
- CMC/Megenagna area (Yeka): broad-based demand from NGO staff and local professionals near schools and retail
- Bole (non-prime pockets): benefits from Bole's rental liquidity without paying peak new-build premiums
Finally, please note that we cover the rental yields in Addis Ababa here.
Make a profitable investment in Addis Ababa
Better information leads to better decisions. Save time and money. Download our guide.
Which Areas in Addis Ababa Are Best for Short-Term Vacation Rentals?
Which neighborhoods in Addis Ababa perform best on Airbnb in 2026?
As of early 2026, the Addis Ababa neighborhoods performing best on Airbnb are Old Airport in Bole, the Atlas and Edna Mall-adjacent micro-areas in Bole, and Kazanchis near Meskel Square in Kirkos, all benefiting from proximity to the airport and business travel routes.
Top-performing Airbnb properties in these Addis Ababa neighborhoods typically generate monthly revenues of around 90,000 to 150,000 ETB (roughly $3,000 to $4,500 at current exchange rates), though this varies significantly based on property quality and management.
Each of these Addis Ababa short-term rental hotspots outperforms for distinct reasons:
- Old Airport (Bole): safest-feeling streets with walkable restaurants and international visitor appeal
- Atlas/Edna Mall area (Bole): fastest airport access makes it ideal for business travelers with early flights
- Kazanchis (Kirkos): central location attracts conference attendees and NGO visitors on short assignments
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Addis Ababa.
Which tourist areas in Addis Ababa are becoming oversaturated with short-term rentals?
The Addis Ababa areas showing signs of short-term rental oversaturation are generic Bole units away from walkable amenities, Kazanchis towers with many identical investor-owned apartments, and older Piassa-adjacent buildings without professional management.
In these potentially oversaturated Addis Ababa zones, competition is intensifying as more investors enter the market, though exact listing counts are harder to verify given the informal nature of much of the short-term rental activity in Ethiopia.
The clearest sign of oversaturation in these Addis Ababa areas is not just listing density but the combination of similar units competing on price while also battling infrastructure challenges like power outages, which pushes average daily rates down faster than in differentiated properties.
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 Areas in Addis Ababa Are Best for Long-Term Rentals?
Which neighborhoods in Addis Ababa have the strongest demand for long-term tenants?
The Addis Ababa neighborhoods with the strongest long-term rental demand are Old Airport in Bole, Kazanchis and Meskel Square edges in Kirkos, CMC and Gerji in Yeka, and Sar Bet and Bisrate Gebriel in Lideta and Kirkos.
In these high-demand Addis Ababa neighborhoods, well-maintained apartments typically rent within 2 to 4 weeks, compared to 2 to 3 months in less desirable areas, though vacancy periods depend heavily on pricing and property condition.
Each of these Addis Ababa neighborhoods attracts distinct tenant profiles:
- Old Airport (Bole): expatriates working for embassies, international organizations, and multinational companies
- Kazanchis (Kirkos): corporate executives, NGO staff, and diplomats valuing CBD proximity
- CMC/Gerji (Yeka): middle and upper-middle income local families near quality schools
- Sar Bet/Bisrate Gebriel (Lideta/Kirkos): value-conscious professionals wanting central access without premium pricing
What makes these Addis Ababa neighborhoods especially attractive to long-term tenants is reliable backup infrastructure: buildings with functioning generators, water storage tanks, and professional management consistently outperform similar units without these features.
Finally, please note that we provide a very granular rental analysis in our property pack about Addis Ababa.
What are the average long-term monthly rents by neighborhood in Addis Ababa in 2026?
As of early 2026, average long-term monthly rents in Addis Ababa range from around 50,000 ETB in Bole for a standard two-bedroom apartment to approximately 120,000 ETB in premium Kazanchis units, with the city-wide median for apartments sitting around 80,000 ETB.
In the most affordable Addis Ababa neighborhoods like outer Nifas Silk-Lafto, Kolfe Keranio, and Akaky Kaliti, entry-level apartments typically rent for 25,000 to 45,000 ETB per month.
In average-priced Addis Ababa neighborhoods like CMC, Gerji, and parts of Yeka, mid-range two-bedroom apartments typically rent for 45,000 to 70,000 ETB per month.
In the most expensive Addis Ababa neighborhoods like Old Airport, Kazanchis, and prime Bole pockets, high-end furnished apartments often rent for 100,000 to 180,000 ETB per month, with luxury units exceeding this range.
You may want to check our latest analysis about the rents in Addis Ababa here.
Get fresh and reliable information about the market in Addis Ababa
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
Which Are the Up-and-Coming Areas to Invest in Addis Ababa?
Which neighborhoods in Addis Ababa are gentrifying and attracting new investors in 2026?
As of early 2026, the Addis Ababa neighborhoods experiencing gentrification and attracting new investor interest are select streets in Piassa and Arada, corridor-adjacent pockets between Sar Bet and Mexico Square, and the CMC and Megenagna-adjacent areas in Yeka.
These gentrifying Addis Ababa neighborhoods have seen price appreciation of roughly 8 to 15% annually over recent periods, though this varies significantly by specific micro-location and building quality, with the broader Addis market showing around 11% average price increases in the high-end segment between H1 and H2 2023.
Which areas in Addis Ababa have major infrastructure projects planned that will boost prices?
The Addis Ababa areas most likely to see price boosts from infrastructure projects are the east and southeast corridors toward Bishoftu, ring-road-linked areas around Kaliti and Gotera, and neighborhoods with improved access to major arterial upgrades.
The biggest infrastructure project affecting Addis Ababa property values is the new Bishoftu International Airport, which broke ground on January 10, 2026 with a $12.5 billion budget and 2030 target completion, funded through a partnership between Ethiopian Airlines and the African Development Bank.
Historically in Addis Ababa, areas that received major infrastructure improvements have seen property prices increase by 15 to 30% over the 3 to 5 years following project completion, though timing and magnitude vary based on how significantly travel times improve.
You'll find our latest property market analysis about Addis Ababa here.
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 in Addis Ababa Should I Avoid as a Property Investor?
Which neighborhoods in Addis Ababa with lots of problems I should avoid and why?
The Addis Ababa areas that present the most challenges for property investors are inner-city strips facing demolition uncertainty, far-flung outskirts with unreliable utilities, and buildings with weak condominium governance regardless of location.
Each problematic area type in Addis Ababa has specific issues:
- Inner-city redevelopment zones (selected Piassa/Arada strips): unpredictable demolition timelines and compensation processes
- Edge subdivisions without infrastructure (outer Akaky Kaliti, remote Kolfe): chronic water and power outages drive tenant discounts
- Poorly managed buildings (any neighborhood): bad condo committees destroy resale value even in prime locations
For any of these Addis Ababa areas to become viable, the redevelopment zones would need clearer legal frameworks and timelines, peripheral areas would need reliable utility connections, and building governance would need professional management with transparent financials.
Buying a property in the wrong neighborhood is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Addis Ababa.
Which areas in Addis Ababa have stagnant or declining property prices as of 2026?
As of early 2026, the Addis Ababa areas most at risk of price stagnation are peripheral zones with weak transport connections, oversupplied clusters of undifferentiated new-build apartments, and older buildings in otherwise good locations that have not been maintained.
With inflation in Ethiopia projected to decline to around 10% in fiscal year 2025/2026, areas experiencing nominal price growth below this threshold are effectively declining in real terms, and some peripheral Addis Ababa zones have seen real price stagnation or even declines of 5 to 15% when adjusted for inflation over the past two years.
The underlying causes of stagnation vary by Addis Ababa area:
- Remote Akaky Kaliti industrial edges: weak amenities and long commutes limit buyer pool depth
- Generic new-build clusters in Bole: oversupply of similar units competing only on price
- Older Kolfe Keranio buildings: infrastructure capacity unable to keep pace with development
Buying real estate in Addis Ababa can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Which Areas in Addis Ababa Have the Best Long-Term Appreciation Potential?
Which areas in Addis Ababa have historically appreciated the most recently?
The Addis Ababa areas that have historically appreciated the most over recent years are Old Airport in Bole, Kazanchis in Kirkos, CMC and Megenagna-adjacent pockets in Yeka, and select Lideta corridors near business districts.
Each of these top-performing Addis Ababa areas has achieved notable appreciation:
- Old Airport (Bole): approximately 12 to 18% annual appreciation driven by expat demand constraints
- Kazanchis (Kirkos): approximately 10 to 15% annual appreciation from corporate tenant growth
- CMC/Megenagna (Yeka): approximately 8 to 12% annual appreciation as retail nodes expanded
- Lideta corridors: approximately 10 to 14% annual appreciation following road improvements
The main driver behind above-average appreciation in these Addis Ababa areas is the combination of infrastructure upgrades arriving in locations where supply is either constrained or quality-filtered, creating persistent scarcity for the best units.
By the way, you will find much more detailed trends and forecasts in our pack covering there is to know about buying a property in Addis Ababa.
Which neighborhoods in Addis Ababa are expected to see price growth in coming years?
The Addis Ababa neighborhoods expected to see the strongest price growth in coming years are Old Airport and Kazanchis (continued premium demand), CMC and Megenagna corridors in Yeka (broad-based growth), and ring-road-linked southeast connectors (infrastructure-driven gains).
Each high-potential Addis Ababa neighborhood has different projected growth trajectories:
- Old Airport (Bole): projected 10 to 15% annual growth as supply remains constrained
- Kazanchis (Kirkos): projected 8 to 12% annual growth from sustained corporate demand
- CMC/Megenagna (Yeka): projected 10 to 14% annual growth as retail and schools expand
- Southeast ring-road corridors: projected 12 to 20% growth as airport project advances
The single most important catalyst expected to drive future price growth in these Addis Ababa neighborhoods is the new Bishoftu International Airport project, which will reshape commute patterns and create tens of thousands of jobs along the southeast corridor by 2030.
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 Do Locals and Expats Really Think About Different Areas in Addis Ababa?
Which areas in Addis Ababa do local residents consider the most desirable to live?
The Addis Ababa areas that local residents consider most desirable are Old Airport in Bole, the premium Bole strips around Atlas and Edna Mall, and Kazanchis near Meskel Square in Kirkos.
Each of these locally-preferred Addis Ababa areas is valued for specific qualities:
- Old Airport (Bole): established neighborhood feel with mature trees and walkable daily amenities
- Atlas/Edna Mall area (Bole): modern retail, restaurants, and perceived safety for families
- Kazanchis (Kirkos): central access to jobs with shorter commutes than outer neighborhoods
These most desirable Addis Ababa neighborhoods are typically home to upper-middle-class Ethiopian families, senior professionals, successful business owners, and increasingly, members of the diaspora returning to invest or live.
In Addis Ababa, local preferences largely align with what foreign investors target, though locals may place higher value on family networks and community ties while foreigners prioritize airport access and expat-friendly services.
Which neighborhoods in Addis Ababa have the best reputation among expat communities?
The Addis Ababa neighborhoods with the best reputation among expat communities are Old Airport in Bole, Kazanchis in Kirkos, and the Bole area around major international hotels and malls.
Expats prefer these Addis Ababa neighborhoods for practical reasons:
- Old Airport (Bole): walkable international restaurants, reliable building management, and 15-minute airport access
- Kazanchis (Kirkos): proximity to embassies, UN agencies, and major corporate offices
- Bole hotel/mall district: familiar international chains, 24-hour security, and expat social scene
The expat profiles in these Addis Ababa neighborhoods are typically diplomats and embassy staff in Kazanchis, NGO and development workers across all three areas, and multinational executives concentrated around Old Airport and the Bole hotel corridor.
Which areas in Addis Ababa do locals say are overhyped by foreign buyers?
The Addis Ababa areas that locals commonly say are overhyped by foreign buyers are "Bole" as a generic label (which covers vastly different micro-areas), new luxury towers without reliable building systems, and certain branded developments marketing primarily to diaspora buyers.
Locals believe these Addis Ababa areas are overvalued for specific reasons:
- "Bole" as a blanket term: foreigners pay premium prices for the name in pockets far from true prime areas
- New luxury towers: impressive lobbies but unreliable elevators, generators, and water supply disappoint residents
- Diaspora-targeted developments: marketing promises exceed the reality of building management and finishing quality
Foreign buyers typically value modern finishes, branded developers, and the "Bole address" more than locals do, while locals prioritize functioning infrastructure, established neighborhoods with mature trees, and proximity to family networks.
By the way, we've written a blog article detailing the experience of buying a property as a foreigner in Addis Ababa.
Which areas in Addis Ababa are considered boring or undesirable by residents?
The Addis Ababa areas that residents commonly consider boring or undesirable are car-dependent outer residential belts with limited walkable retail, purely commuter zones in far Kolfe Keranio and distant Akaky Kaliti, and newer subdivisions that lack established social infrastructure.
Residents find these Addis Ababa areas boring or undesirable for practical reasons:
- Outer residential belts (various sub-cities): no cafes, restaurants, or social venues within walking distance
- Far Kolfe Keranio: long commutes to employment centers and limited public transport options
- Distant Akaky Kaliti: industrial character with few amenities beyond basic needs
- New subdivisions without amenities: streets exist but community gathering places have not yet developed
Don't lose money on your property in Addis Ababa
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
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) | Official national statistics body publishing Ethiopia's inflation data. | We used it to frame how inflation affects construction costs and property prices. We also used it as a reality check when updating price benchmarks to early-2026 conditions. |
| National Bank of Ethiopia (NBE) | Ethiopia's central bank providing official macro and financial context. | We used it to anchor the macro story behind housing affordability and credit availability. We used it to avoid making claims about demand without economic backing. |
| FDRE Justice - Urban Lands Lease Proclamation | Official legal basis for Ethiopia's urban land leasehold system. | We used it to explain that buyers purchase buildings, not land in freehold. We used it to frame risks around lease terms and compliance for foreign buyers. |
| Miles Ethiopia Residential Report | Professional research with primary field data collection and stated methodology. | We used it to anchor price-per-sqm dispersion across Addis Ababa neighborhoods. We used it to ensure our estimates fall within plausible ranges for the local market. |
| Ethiopia Property Centre | One of few sources publishing transparent median listing figures by zone. | We used it to approximate price and rent differences across sub-cities using consistent methodology. We used it to calculate indicative gross yields by neighborhood. |
| AirDNA | Widely used short-term rental data provider with consistent methodology. | We used it to quantify occupancy, ADR, and revenue for Addis Ababa Airbnb properties. We used it as the baseline for short-term rental underwriting in early-2026. |
| Reuters | Global wire service with strong fact-checking and clear sourcing. | We used it to identify the mega-airport project reshaping residential demand corridors. We used it to highlight which Addis Ababa areas benefit from improved connectivity. |
| African Development Bank | Primary source press release from the project's institutional lender. | We used it to validate that the airport has real financing momentum. We used it to infer where long-term job growth and housing demand may concentrate. |
| Addis Ababa City Road Authority | Official city authority describing current road works by corridor. | We used it to pinpoint which micro-areas are being improved and which face construction disruption. We used it to identify neighborhoods where short-term pain may lead to long-term gains. |
| Ethiopian News Agency (ENA) | State news agency reflecting official government decisions. | We used it to confirm the proclamation allowing foreign nationals to own residential property. We used it as a timing anchor for early-2026 buyer eligibility rules. |
Get the full checklist for your due diligence in Addis Ababa
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
Related blog posts