Addis Abeba’s sixth public land lease auctions after a five-year pause delivered mixed signals for the capital’s volatile real estate market. While the highest land price plunged nearly 58pc from its previous peak, tumbling from 218,000 Br to 91,330 Br a square metre, the intensity of the bidding war revealed persistent demand pressures.

City officials put 132 plots on the market, spread over seven districts and totalling more than 42,663Sqm, about the size of six football fields. Interest was strong, with over 5,200 people buying bid documents, and more than 3,500 submitted formal offers.

The highest bid was made by Yisalem Manaye, who offered 91,330 Br a square meter for a 90Sqm plot in the Nifas Silk Lafto District. The bid, setting the ceiling for the latest round, was a sharp drop from the previous record of 218,000 Br a square meter. Yisalem’s total commitment, over 8.2 million Br for a plot barely large enough for a modest home, left many market watchers taken aback.

However, the lower ceiling did not translate into a lack of excitement. Nifas Silk Lafto District, which supplied 56 plots and saw more than 1,600 bids, emerged as the auction’s busiest location. The District saw a string of high offers. Hassen Abdulwehab and Getinet Chane bid 90,100 Br for a square metre for separate plots in the District. Corporate interest was also strong as Biruh Cooperative Contractor Plc snapped up a plot at 42,027 Br a square metre.

Investment levels spanned a wide range. At one end was the smallest successful bid of the round: 12,550 Br a square meter for a 281Sqm plot in Yeka District, totalling about 3.5 million Br. At the other end, MayWish Enterprise S.C. acquired a 1,349Sqm parcel for 41,000 Br a square metre, an outlay exceeding 55 million Br.

Kibrom Assefa, chairman of the Land Auction Committee, described the process as transparent and largely successful.

“Many winners opted to pay the full amount upfront,” he told Fortune, calling it a policy the city administration adopted to discourage speculators and attract committed developers.

He disclosed that all plots had undergone redevelopment, with compensation already paid to former holders, and all were zoned for mixed residential and commercial use.