The 664 housing units of Noah Real Estate's new residential complex, Noah Adey Abeba Village Phase II, were built for an estimated 1.3 billion Br.

Noah Real Estate, one of the prominent local residential builders, will hand over 664 housing units built for an estimated 1.3 billion Br within a month.

Located near Ayat roundabout, the residential complex, Noah Adey Abeba Village, has eight four-storey buildings and 16 seven-storey buildings with two and three-bedroom units. The Village also has parking areas, water wells, electric generators, lifts, supermarkets, a gym and wastewater treatment facilities.

The housing units, which range in size between 430Sqm to 650Sqm, cost between 1.6 million Br to 3.6 million Br. The units are meant for the middle-income residents of the city, according to the real estate firm.

The home buyers made initial down payments of 20pc of the price of the houses and paid the rest in installments over a period of 24 months. The company, which is the sister company of Great Abyssinia Plc that produces Abyssinia Coffee, Prigat Juice and Tulip and Aby Soft Drinks, began the construction two years ago and created job opportunities for 600 people.

The construction of the buildings, which rest on 45,000Sqm, was supervised by a local architectural firm, Salcon Consulting Architects Plc. Noah Construction erected the buildings. The site also includes treatment facilities for the recycling of wastewater to be used on the surrounding vegetation.

“To address the shortage of water problems on the site," said Abiy Hailemariam, vice president of sales at Noah, "we've provided groundwater supply.”

Founded by two brothers, Tewedros and Dawit Zerihun, Noah has delivered a total of 1,656 one to three-bedroom housing units over the past seven years.

Noah has constructed five residential and four commercial housing projects since its establishment in 2013. Currently, it has 5,000 units that are under construction at various sites in the capital.

The most recent housing units the real estate firm transferred was seven months ago. The real estate developer delivered 200 housing units built for 400 million Br. Resting on 55,000Sqm, the units ranged between 93Sqm to 115Sqm and were sold for between 1.1 million Br to 2.5 million Br.

Noah is one of the 630 real estate companies across the country with a total investment capital of 3.5 billion Br. The construction industry contributes, on average, 12.5pc to domestic growth. Incomes generated by the real estate market have also been growing at an average rate of 14.1pc annually.

The role such real estate firms play in absorbing the housing demand has been debated, given that the cost of the houses are high compared to the gross domestic product (GDP) per capita incomes of Ethiopians, which stands at around 790 dollars.

To fill the housing gap in the capital, the Addis Abeba City Administration recently announced the construction of 20,504 housing units that will be built over the next two years in the nine districts of the city. Although to be located in the city centre, the projects are intended for lower and middle-income residents of the city.

Berhanu Zeleke (PhD), a lecturer at the School of Urban Development Studies at Kotebe Metropolitan University, says that the real state industry does not target the low-income residents.

"And the government alone can't fulfill the housing demand of low-income home seekers," Berhanu said. "So, the government and the real state firms should ally in a public-private partnership arrangement to fulfill the housing demand of low-income home seekers."

The government should also work to minimise income inequality and design a housing development strategy, according to Berhanu.

PUBLISHED ON Nov 30,2019 [ VOL 20 , NO 1022]

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