The once-booming real estate market faces a downturn, with developers struggling with declining demand and falling prices. Developers see demand for upscale apartments in the Bole District plummet to unprecedented lows, forcing them to slash prices significantly. However, the market's stagnation persists, exacerbated by political uncertainty, a discouraged diaspora, and a credit squeeze that has left many potential buyers on the sidelines. The downturn marks a notable shift from previous years, where developers successfully sold apartment flats, before the central bank moved towards inflation-targeting monetary policies, which, while successful in abating inflation rates, severely restricted the flow of credit into the market. The credit squeeze has led to a decline in property values, and dampened demand, leaving developers struggling to complete projects. The situation is mirrored by homeowners who face difficulties finding buyers despite being willing to negotiate.

The combination of fluctuating property valuations, increased taxes, and the ongoing credit shortage has injected a high level of uncertainty into a market that was once thriving. The real estate market's decline affects developers and individual homeowners and has broader implications for the economy. The construction sector's growth rate dropped to five percent year-on-year in 2023, down from 20pc in the past. The sector, heavily reliant on continuous credit flow, is seized by the consequences of constrained lending practices, leading to a significant reduction in the asking prices for homes and apartments. Prices have dropped by nearly 15pc over the past six months, attributed to political instability in several parts of the country, further deterring diaspora homebuyers, traditionally a significant segment of the market for premium properties.