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
If you're looking to rent out property in Ethiopia or searching for a place to live, understanding current rental prices is essential.
Ethiopia's rental market is concentrated in Addis Ababa, where most formal listings exist, and prices have been rising steadily due to high demand and limited housing supply.
We constantly update this blog post with the latest data so you always have accurate rent information for Ethiopia in 2026.
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 Ethiopia.
Insights
- Studio apartments in Addis Ababa typically rent for around 45,000 ETB per month in January 2026, which is roughly 360 USD or 330 EUR at current exchange rates.
- Rents in Ethiopia have increased by approximately 18% year-over-year, driven by double-digit inflation and strong urban housing demand.
- Bole and Kirkos are the highest-rent neighborhoods in Addis Ababa, often commanding premiums of 30% to 50% above citywide averages.
- Backup power and reliable water supply are the amenities that increase rent the most in Ethiopia, as infrastructure gaps make these features highly valued by tenants.
- Vacancy rates in prime Addis Ababa neighborhoods sit around 5%, reflecting tight supply despite high asking rents.
- Properties near Addis Ababa University and Light Rail stations rent 15% to 25% faster than comparable units in less connected areas.
- Expats and international organization staff represent a significant portion of high-end rental demand, often paying in USD-equivalent terms.
- September through October is peak rental season in Ethiopia, coinciding with Ethiopian New Year and job rotation cycles.
- Landlords in Ethiopia typically budget 8% to 15% of gross annual rent for maintenance, higher than regional averages due to generator and water system upkeep.
What are typical rents in Ethiopia as of 2026?
What's the average monthly rent for a studio in Ethiopia as of 2026?
As of early 2026, the average monthly rent for a studio apartment in Ethiopia (specifically in Addis Ababa, where most formal rentals exist) is approximately 45,000 ETB, which equals around 360 USD or 330 EUR.
The realistic rent range for most studios in Ethiopia spans from 35,000 ETB to 65,000 ETB per month (280 to 520 USD, or 260 to 480 EUR), depending on location and amenities.
The main factors causing studio rents to vary in Ethiopia include the neighborhood (prime areas like Bole cost more), whether the unit is furnished, and whether it includes backup power and water systems.
What's the average monthly rent for a 1-bedroom in Ethiopia as of 2026?
As of early 2026, the average monthly rent for a 1-bedroom apartment in Ethiopia is approximately 60,000 ETB, which equals around 480 USD or 445 EUR.
The realistic rent range for most 1-bedroom apartments in Ethiopia spans from 45,000 ETB to 85,000 ETB per month (360 to 680 USD, or 330 to 630 EUR).
In Ethiopia, cheaper 1-bedroom rents are found in neighborhoods like Jemo, Ayat, and Lebu, while the highest 1-bedroom rents are in Bole, Kirkos, and Kazanchis where professional tenants concentrate.
What's the average monthly rent for a 2-bedroom in Ethiopia as of 2026?
As of early 2026, the average monthly rent for a 2-bedroom apartment in Ethiopia is approximately 90,000 ETB, which equals around 720 USD or 665 EUR.
The realistic rent range for most 2-bedroom apartments in Ethiopia spans from 65,000 ETB to 130,000 ETB per month (520 to 1,040 USD, or 480 to 960 EUR).
In Ethiopia, the cheapest 2-bedroom rents are typically found in outer neighborhoods like Jemo, Lebu, and Ayat, while the most expensive 2-bedroom units are located in Bole Atlas, Kirkos, and Old Airport areas favored by expats.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Ethiopia.
What's the average rent per square meter in Ethiopia as of 2026?
As of early 2026, the average rent per square meter in Ethiopia (Addis Ababa apartments) is approximately 850 ETB, which equals around 7 USD or 6.30 EUR per square meter per month.
The realistic rent per square meter range across different neighborhoods in Ethiopia spans from 600 ETB to 1,200 ETB (5 to 10 USD, or 4.50 to 9 EUR).
Compared to other Ethiopian cities like Dire Dawa or Bahir Dar, Addis Ababa rents per square meter are significantly higher, often 2 to 3 times the price due to concentrated economic activity and formal housing stock.
In Ethiopia, property characteristics that push rent per square meter above average include backup power systems, reliable water tanks, elevator access in taller buildings, secure compound parking, and proximity to embassies or major offices.
How much have rents changed year-over-year in Ethiopia in 2026?
As of early 2026, rents in Ethiopia have increased by approximately 18% compared to January 2025, with a likely range between 12% and 28% depending on property type and location.
The main factors driving rent changes in Ethiopia this year include persistent double-digit inflation, strong urbanization pressure, limited new housing supply, and currency depreciation affecting USD-linked expat rents.
This year's rent increase in Ethiopia is somewhat lower than 2024's pace, as the government's disinflation efforts have begun moderating price growth, though rents still outpace general inflation due to housing scarcity.
What's the outlook for rent growth in Ethiopia in 2026?
As of early 2026, we project rent growth in Ethiopia to range between 12% and 22% over the coming year, with our base case around 15% nominal growth.
Key factors likely to influence rent growth in Ethiopia include continued urban migration to Addis Ababa, limited formal housing construction, inflation trajectory, and foreign exchange movements affecting expat purchasing power.
In Ethiopia, neighborhoods expected to see the strongest rent growth include CMC, Gerji, and Gurd Shola where newer housing stock attracts both local professionals and international tenants.
Risks that could cause Ethiopia rent growth to differ from projections include stricter enforcement of rent administration rules, a sharper-than-expected economic slowdown, or significant new housing supply coming online.
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 Ethiopia as of 2026?
Which neighborhoods have the highest rents in Ethiopia as of 2026?
As of early 2026, the top three neighborhoods with the highest average rents in Ethiopia are Kirkos (prime pockets) at around 120,000 ETB or 960 USD or 890 EUR per month, Bole (especially Bole Atlas and Medhanealem) at around 110,000 ETB or 880 USD or 815 EUR, and Old Airport at around 100,000 ETB or 800 USD or 740 EUR for a typical 2-bedroom.
These neighborhoods command premium rents in Ethiopia because they offer proximity to embassies, international organizations, major hotels, the airport, and high-quality retail and dining options.
The tenant profile that typically rents in these high-rent Ethiopia neighborhoods includes expats working for NGOs or international organizations, diplomats, senior business executives, and wealthy diaspora returnees.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Ethiopia.
Where do young professionals prefer to rent in Ethiopia right now?
The top three neighborhoods where young professionals prefer to rent in Ethiopia are Bole (Atlas and Medhanealem areas), Kazanchis, and Mexico, all offering good access to offices and social amenities.
Young professionals in Ethiopia typically pay between 50,000 ETB and 80,000 ETB per month (400 to 640 USD, or 370 to 590 EUR) for 1-bedroom or small 2-bedroom apartments in these neighborhoods.
Specific amenities that attract young professionals to these Ethiopia neighborhoods include walkable restaurants and cafes, gyms, coworking spaces, reliable internet, and shorter commute times to business districts.
By the way, you will find a detailed tenant analysis in our property pack covering the real estate market in Ethiopia.
Where do families prefer to rent in Ethiopia right now?
The top three neighborhoods where families prefer to rent in Ethiopia are CMC, Ayat, and Gerji, which offer larger units, quieter streets, and better parking options.
Families in Ethiopia typically pay between 80,000 ETB and 140,000 ETB per month (640 to 1,120 USD, or 590 to 1,040 EUR) for 2-3 bedroom apartments in these neighborhoods.
Specific features that make these Ethiopia neighborhoods attractive to families include larger compound layouts, green spaces, reduced traffic congestion, and proximity to international and private schools.
Top-rated schools near these family-friendly Ethiopia neighborhoods include the International Community School of Addis Ababa, Sandford International School, and German Embassy School, all accessible from CMC and Gerji areas.
Which areas near transit or universities rent faster in Ethiopia in 2026?
As of early 2026, the top three areas near transit hubs or universities that rent fastest in Ethiopia are Sidist Kilo and Arat Kilo (near Addis Ababa University), Mexico (on the Light Rail line), and Megenagna (major transit junction).
Properties in these high-demand Ethiopia areas typically stay listed for only 20 to 35 days, compared to 45 to 90 days for overpriced or poorly located units elsewhere in Addis Ababa.
The typical rent premium for properties within walking distance of transit or universities in Ethiopia ranges from 10,000 ETB to 20,000 ETB per month (80 to 160 USD, or 75 to 150 EUR) above comparable units farther away.
Which neighborhoods are most popular with expats in Ethiopia right now?
The top three neighborhoods most popular with expats in Ethiopia are Bole, Old Airport, and Kazanchis, all offering the amenities and security features international residents prioritize.
Expats in Ethiopia typically pay between 90,000 ETB and 150,000 ETB per month (720 to 1,200 USD, or 665 to 1,110 EUR) for furnished apartments in these neighborhoods.
Specific features that make these Ethiopia neighborhoods attractive to expats include furnished units with backup generators, reliable water systems, proximity to the airport, international restaurants, and embassies.
The nationalities and expat communities most represented in these Ethiopia neighborhoods include Americans, Europeans (especially Germans, British, and Dutch), Chinese, Indians, and staff from various African Union member countries.
And if you are also an expat, you may want to read our exhaustive guide for expats in Ethiopia.
Get fresh and reliable information about the market in Ethiopia
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Who rents, and what do tenants want in Ethiopia right now?
What tenant profiles dominate rentals in Ethiopia?
The top three tenant profiles that dominate the rental market in Ethiopia are local professionals (private sector and civil service employees), international organization and NGO staff, and diaspora returnees on medium-term stays.
In Ethiopia's formal rental market, local professionals represent roughly 50% to 60% of tenants, international organization staff about 25% to 30%, and diaspora returnees around 10% to 15%.
Local professionals in Ethiopia typically seek unfurnished 1-2 bedroom apartments near their workplaces, while international staff prefer furnished 2-3 bedroom units with amenities, and diaspora returnees look for ready-to-live furnished options.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Ethiopia.
Do tenants prefer furnished or unfurnished in Ethiopia?
In Ethiopia's rental market, approximately 35% of tenants prefer furnished apartments while 65% opt for unfurnished or semi-furnished units, though this varies significantly by tenant type.
The typical rent premium for furnished apartments compared to unfurnished in Ethiopia ranges from 15,000 ETB to 30,000 ETB per month (120 to 240 USD, or 110 to 220 EUR), representing roughly a 20% to 35% markup.
Tenant profiles that tend to prefer furnished rentals in Ethiopia include expats on assignment contracts, diaspora returnees, short-term business visitors, and newly arrived international organization staff.
Which amenities increase rent the most in Ethiopia?
The top five amenities that increase rent the most in Ethiopia are backup power (generator or inverter), reliable water supply (tank and pump system), 24-hour security with guards, dedicated parking, and elevator access in mid-rise buildings.
In Ethiopia, backup power adds roughly 10,000 to 20,000 ETB per month (80 to 160 USD), water systems add 5,000 to 15,000 ETB (40 to 120 USD), security adds 5,000 to 10,000 ETB (40 to 80 USD), parking adds 3,000 to 8,000 ETB (25 to 65 USD), and elevator access adds 5,000 to 12,000 ETB (40 to 95 USD).
In our property pack covering the real estate market in Ethiopia, we cover what are the best investments a landlord can make.
What renovations get the best ROI for rentals in Ethiopia?
The top five renovations that get the best ROI for rental properties in Ethiopia are water tank and pump upgrades, inverter and electrical wiring improvements, kitchen and bathroom refreshes, durable flooring installation, and fresh interior painting.
In Ethiopia, water system upgrades cost 50,000 to 150,000 ETB (400 to 1,200 USD) and can increase rent by 10,000 to 15,000 ETB monthly, inverter wiring costs 30,000 to 80,000 ETB (240 to 640 USD) for an 8,000 to 12,000 ETB rent boost, and kitchen or bathroom refreshes cost 40,000 to 100,000 ETB (320 to 800 USD) for a 5,000 to 10,000 ETB monthly increase.
Renovations that tend to have poor ROI and should be avoided by landlords in Ethiopia include luxury finishes that tenants do not value highly, swimming pool installations in a market that does not demand them, and expensive imported fixtures when durable local alternatives exist.
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 Ethiopia as of 2026?
What's the vacancy rate for rentals in Ethiopia as of 2026?
As of early 2026, the estimated vacancy rate for rental properties in Ethiopia (Addis Ababa formal apartment market) is approximately 5% in prime areas and around 8% citywide.
The realistic range of vacancy rates across different neighborhoods in Ethiopia spans from 3% to 5% in high-demand areas like Bole and Kazanchis, up to 10% to 12% in outer neighborhoods with newer, less established stock.
The current vacancy rate in Ethiopia is lower than historical averages due to persistent housing shortages, rapid urbanization, and limited new formal housing supply relative to population growth in Addis Ababa.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Ethiopia.
How many days do rentals stay listed in Ethiopia as of 2026?
As of early 2026, the average number of days rentals stay listed in Ethiopia (Addis Ababa) is approximately 30 to 40 days for correctly priced units.
The realistic range of days on market across different property types and neighborhoods in Ethiopia spans from 20 to 35 days for prime, well-priced units, up to 45 to 90 days for overpriced or poorly located properties.
The current days-on-market figure in Ethiopia is roughly similar to one year ago, as strong demand continues to absorb well-priced inventory quickly while overpriced listings still linger.
Which months have peak tenant demand in Ethiopia?
The peak months for tenant demand in Ethiopia are September through October (after Ethiopian New Year) and January through February (new budget cycles and post-holiday moves).
Specific factors driving seasonal demand patterns in Ethiopia include the Ethiopian calendar New Year in September triggering job changes and relocations, organizational budget resets in January, and school year timing affecting family moves.
The months with the lowest tenant demand in Ethiopia are typically June through August, when the rainy season and pre-New Year period slow down relocation activity.
Buying real estate in Ethiopia 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.
What will my monthly costs be in Ethiopia as of 2026?
What property taxes should landlords expect in Ethiopia as of 2026?
As of early 2026, landlords in Ethiopia should expect to pay annual property taxes ranging from 0.3% to 0.8% of assessed property value, which for a typical rental property worth 5 million ETB means roughly 15,000 to 40,000 ETB per year (120 to 320 USD, or 110 to 295 EUR).
The realistic low-to-high range of annual property taxes in Ethiopia spans from 10,000 ETB to 80,000 ETB (80 to 640 USD, or 75 to 590 EUR) depending on property value, location, and how local authorities apply the rates.
Property taxes in Ethiopia are calculated based on the Property Tax Proclamation No. 1365/2025, which sets urban land use tax at 0.2% to 1% and building tax at 0.1% to 1% of taxable value, with implementation phased over four years.
Please note that, in our property pack covering the real estate market in Ethiopia, we cover what exemptions or deductions may be available to reduce property taxes for landlords.
What maintenance budget per year is realistic in Ethiopia right now?
A realistic annual maintenance budget for a typical rental property in Ethiopia is between 1.5% and 3% of the property's replacement value, or roughly 75,000 to 200,000 ETB per year (600 to 1,600 USD, or 555 to 1,480 EUR) for a mid-range apartment.
The realistic low-to-high range of annual maintenance costs in Ethiopia spans from 50,000 ETB to 300,000 ETB (400 to 2,400 USD, or 370 to 2,220 EUR) depending on property age, generator and water system complexity, and imported parts requirements.
Landlords in Ethiopia typically set aside 8% to 15% of gross annual rental income for maintenance, which is higher than some regional averages due to the need to maintain backup power and water infrastructure.
What utilities do landlords often pay in Ethiopia right now?
The utilities landlords most commonly pay on behalf of tenants in Ethiopia include building service and guard fees, shared water costs in some compounds, and generator fuel when backup power is advertised as included in rent.
In Ethiopia, building service fees typically cost 3,000 to 8,000 ETB per month (25 to 65 USD, or 22 to 60 EUR), shared water can add 1,000 to 3,000 ETB (8 to 24 USD), and generator fuel when included can add 5,000 to 15,000 ETB (40 to 120 USD) depending on usage.
The common practice in Ethiopia is for tenants to pay electricity, internet, and day-to-day consumables directly, while landlords cover compound-level services, though expat leases sometimes bundle all utilities into a higher all-inclusive rent.
How is rental income taxed in Ethiopia as of 2026?
As of early 2026, rental income in Ethiopia is taxed at progressive rates for individuals (ranging from 0% for income up to 7,200 ETB annually, up to 35% for higher brackets) and at a flat 30% rate for companies.
The main deductions landlords can claim against rental income in Ethiopia include documented maintenance expenses, property taxes paid, and a simplified deduction option for those who do not maintain detailed books.
A common tax mistake specific to Ethiopia that landlords should avoid is failing to account for the Income Tax Amendment Proclamation No. 1395/2025, which updated thresholds and administrative rules since the original 2016 law.
We cover these mistakes, among others, in our list of risks and pitfalls people face when buying property in Ethiopia.
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 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.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Ethiopian Statistics Service (ESS) - CPI Portal | It's Ethiopia's official statistics producer for inflation and cost-of-living data. | We used it to anchor rent inflation estimates to the official housing-related CPI basket. We then cross-checked our rent growth figures against this official source. |
| ESS - CPI November 2025 Monthly Bulletin | It's the official monthly CPI release with headline inflation and detailed commentary. | We used it as the latest hard inflation datapoint available right before January 2026. We used that to project rents forward into January 2026. |
| National Bank of Ethiopia - Exchange Rates | It's the country's central bank and official FX reference area. | We used it to define the official FX reference rate concept for USD to ETB rent comparisons. We then used it to contextualize currency conversions in our estimates. |
| TheGlobalEconomy - Ethiopia Indicators | It's a transparent aggregator that cites standard macro series and updates frequently. | We used it to pin a late-2025 USD/ETB reference level for high-end rent comparisons. We used it only as a numerical cross-check, not as the primary inflation source. |
| IMF DataMapper - Ethiopia Inflation | It's the IMF's official macro dataset for forecasts and historical inflation. | We used it to sanity-check whether our 2026 rent growth assumptions are consistent with the macro inflation path. We used it as a top-down ceiling around our bottom-up rent estimates. |
| World Bank - Ethiopia Urban Land and Housing Markets Study | It's a major diagnostic study produced with and for Ethiopian institutions. | We used it to explain why demand pressure is structurally high due to urbanization and housing constraints. We used it to support our outlook section on continued strong demand. |
| Ethiopia Property Centre - Addis Ababa Rent Report | It's a large property portal that clearly states how its market trend stats are calculated. | We used it as our main bottom-up benchmark for Addis Ababa apartment rent levels. We then adjusted these medians into January 2026 estimates using official inflation data. |
| Ethiopia Property Centre - Addis Ababa Listings | It's the live listing universe that the EPC statistics are derived from. | We used it to confirm the typical range for advertised Addis Ababa apartment rents and active listing counts. We used it to keep our estimates realistic and grounded in actual market data. |
| Ministry of Justice - Rent Control Proclamation | It's an official government legal portal publishing the proclamation text. | We used it to explain tenant protections, contract expectations, and formalization effects on pricing. We used it to tailor the tenant preferences section to Ethiopia's regulatory context. |
| Federal Income Tax Proclamation No. 979/2016 | It's the core legal text defining rental income tax in Ethiopia. | We used it to state how rental income is taxed under Schedule B and the default rate structure. We used it to keep the monthly costs section precise and verifiable. |
| Income Tax Amendment Proclamation No. 1395/2025 | It's the enacted amendment text describing recent changes to the income tax framework. | We used it to flag that rental taxation rules have been updated since the 2016 proclamation. We used it as the current reference so readers know the latest brackets. |
| Property Tax Proclamation No. 1365/2025 | It's the published proclamation setting the national framework for property tax. | We used it to estimate property tax exposure with the explicit ranges stated in the law. We used it to explain why actual bills can vary by city and roll-out pace. |
| Knight Frank - Africa Report 2024/25 | It's a well-known global real estate consultancy with consistent research across African markets. | We used it as a cross-check for how prime African city rents behave under inflation and FX shocks. We used it for regional context rather than as the primary Ethiopia rent source. |
| Reuters - Ethiopia Disinflation Reporting | Reuters is a high-standard newsroom that clearly attributes claims to named officials and institutions. | We used it to support the macro backdrop of disinflation and reform in accessible language. We used it only for context while keeping numbers anchored to ESS and IMF data. |
| Ethiopia Property Centre - Kazanchis Data | It provides neighborhood-specific rent data for one of Addis Ababa's prime areas. | We used it to validate high-rent neighborhood rankings and professional tenant concentrations. We used it alongside citywide data to show price variation across sub-cities. |
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