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Addis Abeba Caps Rent Increases at 11.5pc

Jul 8 , 2026

The Addis Abeba City Administration officials have set the annual ceiling on residential rent increases at 11.5pc, effective today, July 8, the start of the new fiscal year.

The new directive will touch more than half a million registered tenants in Addis Abeba.

The increase sits slightly above the 11.24pc that the study the city Administration commissioned, completed a few weeks ago, found acceptable while inflation stays below 10pc. The Administration cast the decision as part of a wider effort to ease the cost of living and to curb arbitrary practices in the rental market.

It argued that the cap protects both sides, giving property owners what it called a fair income "reflecting the current economic condition" while keeping rent proportionate to tenants' earnings and sparing them repeated displacement. The adjustment lands on a market where shelter already absorbs a heavy share of income.

Data from the Ethiopian Property Centre in early

2026 put the average monthly rent for a city-centre studio at 45,000 Br, ranging from 35,000 Br to 65,000 Br by location.

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