The third day of land auctions in Addis Abeba saw one of the lowest participation rates, with many sites failing to attract sufficient interest despite it coming after a two-week postponement.

Held in the Arada, Addis Ketema, and Kolfe districts, the fourth round auction showcased a mixed level of enthusiasm among developers. With 543 bidders competing for 63 plots across three districts, participants expressed disappointment, where a third of the plots offered failed to draw bidders.

Despite being a prime business area, Arada saw one of the lowest bidder turnouts in recent years. Only 15 bidders participated in plots in recently cleared areas of Abuare and Bella. Of the 17 plots offered, 16 failed to attract sufficient bidders, with just one plot drawing four offers. The highest offer came with a bid of 141,201 Br for a square metre while Ayat Realestate S.C. secured the plot with a 45pc upfront payment, followed by Reality Realestate S.C., which offered 85,100 Br with a 60pc down payment.

This turnout sharply contrasts with last year’s auction in the same district, where 295 bidders vied for 22 plots in the recently demolished Piassa area.

Chale Abraham, head of land transfers at the Addis Abeba Land Development & Administration Bureau, noted the decline in both the number of bidders and land prices compared to the previous auction. In May, Awash Bank won 311,000 Br for a square metre in the same district while the first bid last year saw fierce competition reaching 406,667 Br for a square metre in Nefas Silk Lafto, which offered 39 plots and attracted 434 bidders.

“Perhaps prime areas have already drawn attention in previous auctions,” said Chale.

However, he considered the lowering of prices a positive development. “Even though more participants were expected, prices have stabilised.”

Despite a two-week delay due to low initial participation, Chale described last week’s auction as successful and announced plans to float another bid within a month, including the unclaimed plots.

The auctions align with the City Administration’s Corridor Development and Local Development Projects, designed to create new plots from recently cleared areas and reshape the city’s landscape. Winners of the auctions are required to settle payments within five years, with non-compliance leading to the transfer of plots to the runner-up. This policy is rooted in the 2011 lease proclamation, which uses bid price and advance payments as determining factors.

The bidding process was marked by anticipation and anxiety. At the Bole district land bureau hall, a metal box containing bid documents became the focal point as land administrators scrutinized submissions. While bidders awaited results with bated breath, critics examined the process, analysing winners, disqualifications, and unclaimed plots.