Obituary | Feb 29,2020
Dec 5 , 2024
Federal legislators have passed a landmark real estate law imposing strict regulations on property valuations and market practices, pledging to protect buyers and bring clarity to the otherwise disressed industry.
Authored by experts at the Ministry of Urban Development & Infrastructure, the bill was approved by a majority vote, with two MPs voting against, while an MP abstained. The new legislation sets stringent requirements for real estate developers.
To qualify for a license, developers should have constructed and transferred ownership of at least 50 housing units. For those seeking public land allocations, the demands are even higher requiring developers to commit to delivering between 500 and 5,000 housing units, with a minimum of 5,000 units mandated for projects in Addis Abeba. The law also puts burden on prospective developers to complete at least 80pc of a project before transferring ownership to buyers, unless alternative arrangements are explicitly outlined in contracts.
The bill authors argued the measure is designed to prevent situations where buyers are left with unfinished properties after making financial commitments. The legislation prohibits misleading promotions and public issuances, while developers are barred from collecting funds from buyers without fulfilling their obligations, a move intended to enhance consumer protection in a market where regulatory oversight has been historically limited.
The proclamation also introduces a standardised property valuation system to address price fluctuations and inconsistencies in the real estate market. The system will provide uniform valuations for fixed assets, facilitating processes such as tax assessments, bank loan approvals, legal dispute resolutions, and rental agreements.
Supporters of the new law argue that it will enhance transparency and accountability in the real estate sector, encouraging investment and ensuring that developers deliver on their promises. Critics, however, express concern that the stringent requirements could stifle small and medium-sized developers, potentially slowing the pace of housing development.
The law comes at a critical time for Ethiopia, which faces a housing shortage. According to a report by the Centre for Affordable Housing Finance in Africa, it needs to construct approximately 486,000 housing units annually to meet growing demand fueled by population growth and urbanisation.
My Opinion | 132045 Views | Aug 14,2021
My Opinion | 128441 Views | Aug 21,2021
My Opinion | 126368 Views | Sep 10,2021
My Opinion | 123991 Views | Aug 07,2021
Jul 12 , 2025
Political leaders and their policy advisors often promise great leaps forward, yet th...
Jul 5 , 2025
Six years ago, Ethiopia was the darling of international liberal commentators. A year...
Jun 28 , 2025
Meseret Damtie, the assertive auditor general, has never been shy about naming names...
Jun 21 , 2025
A well-worn adage says, “Budget is not destiny, but it is direction.” Examining t...
Loading your updates...