Explaining the Soaring Ethiopian Real Estate and Property Prices

Abstract

Admittedly, in all countries of the world, Ethiopia included, the reasons behind rising property prices could be many. In the Ethiopian case, these factors include, among others, demand for and supply of real (estate) assets, rising population and urbanization, the existence of a large number of tenants working for donor communities (NGOs) and multinational institutions, huge influx of money that the diaspora community sends back home (remittances) that largely is poured onto the housing and real estate markets. This article, however, focuses on government policy-driven (infrastructure and service sector-focused) and the corruption fueled aspect of the fast-rising real estate and related property prices. This brief analysis paints the picture why Ethiopia is still an empire-like landed aristocracy (the government apparatchik being replaced by a new oligarchy) but dangerously wrapped with criminality and pyramidal schemes.