Is right now a good time to buy a property in Ethiopia? (2026)

Authored by the expert who managed and guided the team behind the Ethiopia Property Pack

Everything you need to know before buying real estate is included in our Ethiopia Property Pack

Is it smart to buy now in Ethiopia, or should I wait as of 2026?

Do real estate prices look too high in Ethiopia as of 2026?

As of early 2026, property prices in Ethiopia look high relative to local incomes, but they are being held up by a genuine shortage of housing rather than speculation or overbuilding.

One clear signal from the market is that high-end apartments in Addis Ababa show a very wide price range (from around 120,000 to 220,000 Ethiopian Birr per square meter), which suggests that sellers at the top end are often waiting longer to find buyers willing to pay premium prices.

Another telling sign is that mid-market condos and family-sized apartments in job-rich areas like Bole and Kirkos tend to sell more steadily, because buyers in those segments are driven by actual housing needs rather than investment appetite.

You can also read our latest update regarding the housing prices in Ethiopia.

Does a property price drop look likely in Ethiopia as of 2026?

As of early 2026, the likelihood of a broad property price crash in Ethiopia is low, mainly because the country's urban areas are still dealing with a housing shortage rather than an oversupply problem.

A realistic price change range for Ethiopia over the next 12 months would be somewhere between a 5% dip in overpriced luxury segments and a 10% to 15% nominal increase in high-demand mid-market areas, depending on inflation and credit conditions.

The single most important factor that could push prices down in Ethiopia would be a sharp tightening of credit conditions or a new wave of inflation that crushes household purchasing power.

However, with the IMF reporting that Ethiopia's inflation is on track to fall toward 10% by the 2025/2026 fiscal year, a severe credit shock looks less likely now than it did a year or two ago.

Finally, please note that we cover the price trends for next year in our pack about the property market in Ethiopia.

Could property prices jump again in Ethiopia as of 2026?

As of early 2026, the likelihood of a renewed price surge in Ethiopia is medium to high, especially in prime Addis Ababa neighborhoods where new demand drivers are emerging.

A plausible upside scenario for Ethiopia over the next 12 months could see prices in high-demand areas like Bole and Kazanchis rise by 15% to 25% in nominal terms, particularly if foreign buyer interest picks up.

The single biggest demand-side trigger that could push Ethiopian property prices higher is the new proclamation allowing foreign nationals to own residential property, which opens the door for diaspora and international investors to enter the market legally.

Please also note that we regularly publish and update real estate price forecasts for Ethiopia here.

Are we in a buyer or a seller market in Ethiopia as of 2026?

As of early 2026, Ethiopia's property market is split: it leans toward sellers in the mid-market segment where families need homes, but leans toward buyers in the high-end luxury segment where pricing often exceeds what local incomes can support.

Ethiopia does not have a formal months-of-inventory metric like Western markets, but the structural housing deficit (nearly 500,000 units needed per year nationally) means that in practical terms, well-located and correctly priced homes do not sit on the market for long.

Price reductions are more common in the luxury apartment and villa segments, where sellers sometimes set prices as if buyers are paying in hard currency, but this does not reflect the broader market where demand remains strong and negotiating room is limited.

Are homes overpriced, or fairly priced in Ethiopia as of 2026?

Are homes overpriced versus rents or versus incomes in Ethiopia as of 2026?

As of early 2026, homes in Ethiopia look overpriced when you compare them to local incomes, but they look more reasonable (though still stretched) when you compare them to rents in high-demand areas.

The price-to-rent ratio in Addis Ababa suggests gross rental yields in the mid-single digits (roughly 4% to 6% in many areas), which is not cheap but not drastically out of line with other emerging African markets.

The price-to-income multiple in Ethiopia is very high: a typical mid-market apartment in Addis Ababa (around 13 to 19 million Ethiopian Birr) would require 15 to 25 times the annual income of an average salaried household, which explains why most buyers rely on cash, remittances, or asset sales rather than mortgages.

Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Ethiopia.

Are home prices above the long-term average in Ethiopia as of 2026?

As of early 2026, Ethiopian property prices are nominally well above their long-term average, but once you adjust for the country's years of high inflation, the gap looks much smaller.

Over the past 12 months, nominal prices in Addis Ababa have likely risen by around 10% to 20% depending on the segment, but inflation was also running in the double digits for much of that period, so real (inflation-adjusted) gains were modest.

When you compare current prices to prior cycle peaks in real terms, Ethiopia's property market looks elevated but not wildly overheated, because much of what appears to be a price boom is actually a currency and inflation story rather than a pure property bubble.

What local changes could move prices in Ethiopia as of 2026?

Are big infrastructure projects coming to Ethiopia as of 2026?

As of early 2026, the biggest infrastructure project likely to affect property prices in Addis Ababa is the ongoing corridor development program, which includes upgrades along routes connecting Meskel Square, Urael, Diaspora Junction, and Southgate.

The timeline for these corridor projects is rolling, with some phases already inaugurated and others expected to continue through 2026 and 2027, which means buyers in these zones could see gradual price lifts as each section completes.

For the latest updates on the local projects, you can read our property market analysis about Ethiopia here.

Are zoning or building rules changing in Ethiopia as of 2026?

The most important regulatory changes affecting property buyers in Ethiopia right now are not traditional zoning reforms but rather administrative directives around condo management, documentation requirements, and targeted redevelopment zones in Addis Ababa.

As of early 2026, these ongoing rule adjustments could create modest price pressure in areas subject to redevelopment or stricter enforcement, while well-documented properties in stable zones may become relatively more valuable.

The areas most affected by these regulatory changes in Ethiopia tend to be older neighborhoods in central Addis Ababa targeted for upgrading, as well as government condo sites where occupancy and management rules are being tightened.

Are foreign-buyer or mortgage rules changing in Ethiopia as of 2026?

As of early 2026, the direction of foreign-buyer rules in Ethiopia has shifted dramatically in favor of opening the market, which could push prices higher in prime segments as diaspora and international buyers gain legal access to residential property.

The most significant foreign-buyer rule change is the 2024 proclamation allowing foreign nationals to own residential real estate in Ethiopia (while land remains under Ethiopia's leasehold system), which removes a major barrier that previously kept international capital out of the market.

On the mortgage side, the main constraint remains limited credit availability rather than specific rule tightening, so buyers who can access financing or pay cash have an advantage, but there are no major new LTV limits or stress tests being introduced.

You can also read our latest update about mortgage and interest rates in Ethiopia.

Will it be easy to find tenants in Ethiopia as of 2026?

Is the renter pool growing faster than new supply in Ethiopia as of 2026?

As of early 2026, renter demand in Ethiopia's urban areas (especially Addis Ababa) is growing faster than new rental supply, which is good news for landlords looking to fill units.

The clearest signal of renter demand growth in Ethiopia is the ongoing urban migration and household formation, with estimates suggesting the country needs around 486,000 new housing units per year just to keep up with demand through 2035.

On the supply side, new housing completions in Ethiopia remain constrained by land delivery bottlenecks, infrastructure gaps, and limited developer financing, which means the supply pipeline cannot easily catch up to demand.

Are days-on-market for rentals falling in Ethiopia as of 2026?

As of early 2026, rental days-on-market in Ethiopia's strongest areas appear to be falling, with well-priced units in neighborhoods like Bole and Kirkos often finding tenants quickly.

The difference in rental speed between best areas and weaker areas in Ethiopia is significant: a correctly priced two-bedroom in Bole might rent within days, while an overpriced unit in a peripheral area like Ayat or Koye Fiche could sit for weeks or even months.

The most common reason rentals are moving faster in Addis Ababa's core neighborhoods is simply undersupply: there are more renters looking for decent housing near jobs and services than there are available units to absorb them.

Are vacancies dropping in the best areas of Ethiopia as of 2026?

As of early 2026, vacancies in Addis Ababa's best rental areas like Bole (near Medhanealem and the airport zone), Kazanchis, Kirkos, and the Yeka corridor (Urael, Megenagna, CMC) appear to be dropping as tenant demand outpaces available stock.

Vacancy rates in these prime Addis Ababa neighborhoods are estimated to be lower than the city-wide average, with well-maintained apartments in good locations rarely sitting empty for long.

One practical sign that these best areas are tightening first is that landlords in Bole and Kazanchis are increasingly able to push through rent increases without losing tenants, something that is harder to do in less central locations.

By the way, we've written a blog article detailing what are the current rent levels in Ethiopia.

Am I buying into a tightening market in Ethiopia as of 2026?

Is for-sale inventory shrinking in Ethiopia as of 2026?

As of early 2026, it is difficult to say with precision whether for-sale inventory in Ethiopia has shrunk compared to last year, because the country does not have a centralized MLS-style listing system that tracks inventory in real time.

What we can say is that Ethiopia's underlying housing supply remains structurally constrained, with land delivery, infrastructure, and financing bottlenecks documented by the World Bank, which means even if listing counts fluctuate, the fundamental backdrop is one of tight supply.

The most likely reason inventory stays tight in Ethiopia is that new housing delivery simply cannot keep pace with urban growth, so even when sellers list properties, the pool of available homes remains shallow relative to demand.

Are homes selling faster in Ethiopia as of 2026?

As of early 2026, homes in Ethiopia's mid-market segment appear to be selling at a steady pace, while luxury properties and overpriced listings tend to sit longer as buyers wait for more realistic pricing.

Year-over-year, selling times in Ethiopia have likely stayed roughly stable or improved slightly for correctly priced properties in strong locations, but stretched selling times persist for high-end stock where the buyer pool is thin.

Are new listings slowing down in Ethiopia as of 2026?

As of early 2026, we do not have reliable data to say whether new for-sale listings in Ethiopia are slowing down, speeding up, or staying flat, because there is no official national listings feed that tracks this metric.

What we do know is that Ethiopia's housing delivery pipeline is structurally inelastic, meaning that even if short-term listing activity fluctuates, the underlying supply of new homes cannot quickly expand to meet demand.

Is new construction failing to keep up in Ethiopia as of 2026?

As of early 2026, new construction in Ethiopia is clearly failing to keep up with demand, with the country needing roughly 486,000 new housing units per year through 2035 while actual delivery falls far short of that figure.

The trend in housing permits and completions in Ethiopia has been constrained for years, with government condo programs and private developers both struggling to scale up delivery at the pace urban growth requires.

The single biggest bottleneck limiting new construction in Ethiopia is land availability and delivery, because the government controls urban land allocation and the process is slow, which chokes the pipeline before construction can even begin.

Will it be easy to sell later in Ethiopia as of 2026?

Is resale liquidity strong enough in Ethiopia as of 2026?

As of early 2026, resale liquidity in Ethiopia is uneven: correctly priced apartments and condos in high-demand Addis Ababa neighborhoods like Bole, Kirkos, and Kazanchis tend to sell reasonably well, while luxury villas and overpriced properties can take much longer to find buyers.

There is no official median days-on-market figure for resale homes in Ethiopia, but based on market signals, a well-located and realistically priced property in Addis Ababa might sell within one to three months, while outliers can sit for six months or more.

The property characteristic that most improves resale liquidity in Ethiopia is location near employment centers and transport corridors, because buyers prioritize access to jobs and services over size or luxury finishes.

Is selling time getting longer in Ethiopia as of 2026?

As of early 2026, selling time in Ethiopia appears stable for mid-market properties but may be lengthening for high-end listings where affordability constraints are biting harder.

The realistic range for days-on-market in Ethiopia spans from a few weeks for well-priced condos in prime Addis Ababa locations to several months for luxury villas or properties priced far above what local incomes can support.

One clear reason selling time can lengthen in Ethiopia is when sellers price their properties as if buyers have access to hard currency or cheap financing, which most Ethiopian buyers do not have.

Is it realistic to exit with profit in Ethiopia as of 2026?

As of early 2026, the likelihood of selling with a profit in Ethiopia is medium to high if you hold for at least five to seven years, buy in a high-demand area, and avoid overpaying at purchase.

The estimated minimum holding period that most often makes exiting with profit realistic in Ethiopia is around five to seven years, which gives you time to ride out inflation cycles and capture location-driven appreciation.

Total round-trip transaction costs in Ethiopia (including registration, legal fees, and potential taxes) can run roughly 8% to 12% of the property value, which in Addis Ababa terms might mean around 1 to 2 million Ethiopian Birr on a mid-market apartment, or roughly 2,000 to 4,000 USD at current exchange rates (roughly 1,800 to 3,700 EUR).

The factor that most increases profit odds in Ethiopia is buying below market value in an area with strong rental demand, because you can earn rental income while waiting for appreciation and avoid being forced to sell at a bad time.

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 Ethiopia, 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.