Agenda | Mar 14,2026
Addis Abeba’s latest land lease auction, its seventh in the current cycle, has offered fresh insight into the changing dynamics of the capital’s volatile property market.
The lease offer of 274 plots across eight districts drew substantial interest, but with a notable shift in interest. Fewer bidders faced steeper prices, and a widening gulf between speculative and end-user motivations.
The City Land Development & Administration Bureau opened bidding on 274 plots, covering close to 70,000Sqm, across eight districts. The event, held at the Bole District’s meeting hall near to Megenagna square, drew robust interest, with more than 4,800 people buying bid documents. However, in a sign that the market’s mood is shifting, the number of actual bidders fell about seven percent from the previous round.
Despite the dip in participation, the number of offers soared. The average offer made for a square metre jumped nearly 48pc, marking one of the sharpest increases seen in recent auctions. In Gulelle District, located in the northwest of the City, a cluster of seven plots attracted particularly aggressive bids. The highest offer came from Addisalem Fenta, who committed to pay 135,000 Br a square metre for a 100Sqm plot, putting down more than 13.5 million Br for a parcel barely big enough for a modest home.
That price represented a 48pc leap from the previous round’s high, which had been set at 91,330 Br a square metre for a 90Sqm plot in Nifas Silk-Lafto District in the southern part of the City.
Kolfe Qeranyo District, on the western side of Addis Abeba, delivered another surprise. A 96Sqm plot, the smallest on offer in the auction, went for 125,000 Br a square metre, snapped up by Eliyas Shamsu. This trend, in which smaller plots command higher prices and draw more bidders, has become increasingly pronounced. Many observers attribute this to affordability, as smaller parcels still require a large upfront payment, but one that is within reach for more middle-class bidders, while larger lots mean steeper total commitments that deter many would-be lessors.
The Seventh round land lease auction held at the Bole District’s meeting hall near to Megenagna square.
The largest plot available in this round was a 902Sqm parcel in Gulelle District. It was won by Tay Trading Plc for 25,000 Br a square meter, showing that size, rather than location alone, can put downward pressure on lease prices. In the same District, the auction also produced the lowest winning price. Michael Alemu secured a 456Sqm plot at 9,800 Br a square metre, unveiling how wide the price range can be, even within the same neighbourhood.
Bidders left the auction hall with mixed feelings.
Bisrat Getnet, who placed 36,660 Br a square metre for a 150Sqm plot in Nifas Silk-Lafto District, was pleased with his win, though he admitted, “the price was somewhat high compared to other plots in the District.”
He intends to use the plot for commercial purposes, where, presumably, a higher return can be expected.
But others were left frustrated. Muluken Melaku, who bid for a 189Sqm plot in Yeka District in the City’s north, placing 21,000 Br a square metre, only to see the winning offer reach 60,000 Br, nearly three times his bid.
“This winning price was exaggerated and far above what the plot is worth,” he told Fortune.
The auction was overseen by the City’s Land Auction Committee, led by its chairperson, Kibrom Assefa, who said the bidding process was “transparent and successful.” He disclosed that city land officials had initially planned to put 384 plots up for bid but were forced to remove 110, some due to ongoing court litigation and others because their paperwork and clearance process had not been completed. Out of the 274 plots that did go under the hammer, 49 received no winning bid at all.
According to Kibrom, the City’s recent push to require full upfront payment is part of a strategy to discourage speculators and ensure that only serious buyers, ready to build, enter the process.
“Many bid winners chose to pay the full amount upfront,” he said.
The plots issued in this round had already been cleared of previous occupants, with compensation paid, and are zoned for mixed residential and commercial development. Kibrom also noted that bidders appear to be better prepared, with a marked drop in the number of disqualified bid documents. In a sign of the times, he disclosed that the Bureau plans to eliminate all paperwork in future auctions, moving instead to an entirely digital platform.
Expert opinions on the land lease market are divided.
Ermiyas Tadesse, a veteran of the City’s real estate sector, has observed several recent auctions and believes prices have risen compared to the last round, but noted that they have actually dropped from levels seen in the fifth round and earlier.
“Lease prices have dropped," he told Fortune. "But they're still too expensive for most people.”
According to Ermiyas, the auctions tend to attract small and individual buyers with the means and the information to bid. However, the high bid prices are not always paid by those looking to build.
“Many winning bidders don't lease the land to build on it," he said. "They join the auction to lease the plot at a relatively better price from the government and then resell it at a much higher price.”
He argued that such bidders do not mind whether the price they offer is inflated, as they are primarily seeking a profit. He called for more active city intervention to counter what he described as unnecessary price inflation and “unfair practices” in the market.
Ermiyas also pointed to eroding confidence among bidders and businesspeople. He argued that frequent changes in government policy and land laws, as well as common occurrences of eviction and land repossession in Addis Abeba, have made many potential bidders wary. The result is an increasing preference for condominiums and apartments rather than plots. He also blamed "tough business conditions" and high tax pressure for pushing traders out of the market.
Nonetheless, Ermiyas sees some positive outcomes from the auctions. He believes the process helps keep the market moving and that, with stronger and broader promotion, it could be made more inclusive. He urged the City Administration to offer more small-sized plots, since they are more affordable and would likely attract more genuine home builders.
“People should be encouraged to form associations and build community homes,” he said, urging the City to prioritise this type of bidding in the future.
PUBLISHED ON
Nov 15,2025 [ VOL
26 , NO
1333]
Agenda | Mar 14,2026
Money Market Watch | Aug 11,2024
News Analysis | Apr 19,2026
Viewpoints | Aug 10,2025
Sunday with Eden | Jul 20,2024
My Opinion | Apr 04,2026
Agenda | Sep 01,2024
Fortune News | Jul 17,2022
Fortune News | Dec 27,2025
Agenda | Nov 16,2024
Dec 22 , 2024 . By TIZITA SHEWAFERAW
Charged with transforming colossal state-owned enterprises into modern and competitiv...
Aug 18 , 2024 . By AKSAH ITALO
Although predictable Yonas Zerihun's job in the ride-hailing service is not immune to...
Jul 28 , 2024 . By TIZITA SHEWAFERAW
Unhabitual, perhaps too many, Samuel Gebreyohannes, 38, used to occasionally enjoy a couple of beers at breakfast. However, he recently swit...
Jul 13 , 2024 . By AKSAH ITALO
Investors who rely on tractors, trucks, and field vehicles for commuting, transporting commodities, and f...
May 9 , 2026
The Ethiopian state appears to have discovered a fiscal instrument that is politicall...
May 2 , 2026
By the time Ethiopia's National Dialogue Commission (ENDC) reached the end of its fir...
Apr 25 , 2026
In a political community, official speeches show what governments want their citizens...
For much of the past three decades, Ethiopia occupied a familiar place in the Western...
Loading your updates...