Ethiopia Opens Doors: Expat Ownership of Property in Addis Ababa
1. Historic Shift in Policy
In a landmark move, the House of People’s Representatives on July 1, 2025, approved a new proclamation that marks a major shift in Ethiopia’s real estate laws . Previously, expats were entirely barred from owning homes or commercial buildings in Addis Ababa and across Ethiopia.
2. What Foreigners Can (and Can’t) Buy
- Eligible property: Urbans residential structures—apartments, houses, villas, and commercial real estate—but not the land itself.
- Land remains government-owned, with expats permitted to hold leasehold rights while owning the built structure
- Rural and agricultural lands or properties in border zones and government-subsidized housing are off limits
3. Investment Minimum & Ownership Cap
- Minimum investment: USD 150,000 per property
- Limit: Up to five properties per foreign individual
- The threshold, designed based on current market values, may be adjusted later to reflect economic changes .
4. Expected Benefits
- Benefits: This move is expected to boost foreign direct investment and expand the local real estate sector—creating affordable housing and employment .
5. What This Means for Expats
- A new asset avenue: Previously, expats could only rent; now they can build equity and reap appreciation in Addis Ababa’s rapidly growing market.
- Ideal for long stays: Those planning to stay longer years can benefit from property ownership instead of renting long time .
✅ Final Thoughts for Prospective Buyers
This policy opens the door for expats to hold a stake in Addis Ababa’s future—owning apartments and commercial buildings while complying with clear thresholds and rules.
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