𝐏𝐫𝐨𝐩𝐞𝐫𝐭𝐲 𝐏𝐫𝐢𝐜𝐞 𝐢𝐧 𝐀𝐝𝐝𝐢𝐬 𝐀𝐛𝐚𝐛𝐚
𝐀 𝐌𝐚𝐫𝐤𝐞𝐭 𝐍𝐞𝐢𝐭𝐡𝐞𝐫 𝐋𝐨𝐠𝐢𝐜 𝐧𝐨𝐫 𝐓𝐡𝐞𝐨𝐫𝐲 𝐄𝐱𝐩𝐥𝐚𝐢𝐧𝐬
The most bizarre aspect of the Ethiopian economy is the constant surge in the prices of properties, particularly in Addis Ababa and other major towns. The fast price growth trajectory, which started almost two decades ago, has increased momentum in recent years.
In a properly functioning property market, housing price trends are anchored to some economic fundamentals such as real income and rental value. Defying these economic fundamentals, the price of houses, particularly in the capital, has been soaring to an alarming level, though there is a recent change in the dynamics. Surprisingly, the rent increase is far behind the growth in property value, considerably squeezing the yield (rent/property value). This situation indicates that something serious has gone wrong in the market that calls for policy intervention.
Read more:
https://ethiopianbusinessreview.net/property-price-in-addis-ababa/